Decision details

Cabinet received a report on the proposals for the Housing Revenue Account (HRA) budgets and rent setting for 2026/27, to be considered by Council on 21 January 2026.  The report also gave an update on the formula for setting rents for 2026/27, proposing the HRA rents for 2026/27 and the HRA service charges for 2026/27.

The Portfolio Holder for Housing also gave an update on the 2026/27 HRA budget, incorporating the decisions included in the HRA Business Plan report that was approved at the Cabinet meeting on the12 November 2025 and the 2026/27 HRA fees and charges approved on the 8 October.

Cabinet were advised that the budget assumed a CPI+1% rent increase (4.8%) from April 2026 with an average weekly rise of £6.72 for social rents and £8.85 for affordable rents.

Members were advised that a minimum reserve of £10million had been set to mitigate financial and operational risks, ensuring resilience while progressing towards EPC-C compliance and supporting the Council’s long-term housing and sustainability objectives.

The Portfolio Holder for Resources and Performance advised that the medium-term strategy reflected significant investment needs and borrowing to maintain housing stock and deliver new homes.  She advised that risks remained around interest rate volatility, rent policy uncertainty and regulatory compliance alongside ambitious saving targets.  Future funding had also been earmarked for major repairs and compliance upgrades to ensure tenants had the warm and safe homes they deserved alongside funding for new development which would deliver around 320 homes.

In response to a question regarding the reduction in social housing numbers as a result of Right to Buy legislation, The Strategic Director and Chief Financial Officer confirmed that the Government had reduced the Right to Buy discount available to tenants from £101,000 to £34,000 which should reduce the number of applications going forward.  She also advised that the Business Plan showed a net increase in properties which would help support the housing register.

It was RESOLVED:

1.    That HRA dwelling rents be increased (week commencing 1 April 2026) by 4.8%. This equates to an average increase of £6.72 for social rents, £8.85 for affordable rents and £8.19 for Low Start Shared Ownership homes per week (based on a 52-week year) and assuming rent convergence with a £1 per week cap is approved by the Government.

2.    That the 2026/27 service charges be approved as set out in paragraph 4.2.

3.    That the HRA budget for 2026/27, set out in Appendix A, be approved.

4.    The 2026/27 growth options as set out in section 4.4 be approved.

5.    That the 2026/27 Fees and Charges as set out in Appendix B be noted.

6.    That the revised minimum levels of balances for 2026/27 shown in Appendix C be approved.

7.    That the Rent Increase Equalities Impact Assessments (EqIA) appended to the report in Appendix D be approved.

8.    That the contingency sum of £500K, within which the Cabinet can approve supplementary estimates, be approved for 2026/27.
 

9.    That the decisions taken on recommendations 2.1 – 2.8 above be referred to the Overview and Scrutiny Committee for consideration in accordance with the Budget and Policy Framework rules in the Council’s Constitution.

10.That key partners and other stakeholders be consulted and their views considered as part of the 2026/27 budget setting process.