Issue - meetings

To consider the Housing Revenue Account (HRA), Rent, Service Charge Uplift and the HRA Budget for 2026-27.

Contact: Jacqui Fieldhouse, Head of Finance – Homes & Neighbourhoods

RESOLVED –

1)    That approval be given to the rent uplifts by an average of £4.19 per week (CPI, 3.8% +1%) and service charges payable between 0.01p and £0.87 per week (4.8%) from 1 April 2026, after taking into consideration the affordability to tenants, as summarised in Appendix 1

2)    That approval be given to the increase the rent by a further £1 or £2 per week in line with the government announcement to move towards rent convergence.

3)    That approval be given to increase the service charge for communal grounds maintenance services capped at £1.00 per week each year until full cost recovery is achieved.

4)    That approval be given to increase the charges for Extra Care Services – Intensive Housing Management to be uplifted by between £1.47 and £3.74 (4.8%) and Extra Care Services – Night Care Service to be uplifted by £1.13 per week (4.8%).

5)    That the national and local financial challenges outlined as part of the HRA budget proposals for 2026-27 be noted.

6)    That authority be delegated to the Executive Director of Place in consultation with the Portfolio Holder for Transport and Housing to approve any changes to the rate for sheltered heating and district heating.

7)    That the draft HRA Revenue Budget for 2026/27 be recommended to Council in February 2026 for approval as outlined at appendix 2

8)    That the revised proposed five-year Capital Plan Budget be recommended to Council for approval as outlined at appendix 6. (Funding summary Appendix 4)

(Under the provision of Council Procedure Rule 36(1) Cabinet received a representation from Councillor Cooper)

Cabinet considered a report which provided the financial context and basis for the annual rent and service charges inflationary uplift for 2026-2027, which would form part of the Housing Revenue Account budget proposals.

Cabinet was advised that, if approved, the approach to maximises rent and service charge income, ensured compliance with the requirements of the Local Government and Housing Act 1989 to have a balanced HRA and the Welfare Reform and Work Act 2016 and the rent standard.  The approach ensured sufficient resources were available to invest in tenants’ homes, prioritising safety and maintaining compliance with the decent homes’ standard.

The report outlined that the proposed Housing Revenue Account budget was £115m, whereby 28% was budgeted to be spent on repairs and maintenance, 24% on management costs, 5% on community facility costs which was recoverable through a service charge, 10% to be spent on extra care schemes which was recoverable through grant, rents and service charges, 23% to contribute to the cost of capital and major works, 7% for financing costs and 3% for other provisions and taxes.

RESOLVED –

1)    That approval be given to the rent uplifts by an average of £4.19 per week (CPI, 3.8% +1%) and service charges payable between 0.01p and £0.87 per week (4.8%) from 1 April 2026, after taking into consideration the affordability to tenants, as summarised in Appendix 1

2)    That approval be given to the increase the rent by a further £1 or £2 per week in line with the government announcement to move towards rent convergence.

3)    That approval be given to increase the service charge for communal grounds maintenance services capped at £1.00 per week each year until full cost recovery is achieved.

4)    That approval be given to increase the charges for Extra Care Services – Intensive Housing Management to be uplifted by between £1.47 and £3.74 (4.8%) and Extra Care Services – Night Care Service to be uplifted by £1.13 per week (4.8%).

5)    That the national and local financial challenges outlined as part of the HRA budget proposals for 2026-27 be noted.

6)    That authority be delegated to the Executive Director of Place in consultation with the Portfolio Holder for Transport and Housing to approve any changes to the rate for sheltered heating and district heating.

7)    That the draft HRA Revenue Budget for 2026/27 be recommended to Council in February 2026 for approval as outlined at appendix 2

8)    That the revised proposed five-year Capital Plan Budget be recommended to Council for approval as outlined at appendix 6. (Funding summary Appendix 4)