Issue - meetings

To update Members on the proposals for the Housing Revenue Account (HRA) budgets and rent setting for 2026/27.

The Council considered a report seeking approval to the Housing Revenue Account (HRA) Budget and Rent Setting for 2026/27.

In moving the motion, Councillor Jackie Hollywell, Cabinet Member for Housing advised that the Council had taken major strides in strengthening the foundations of the Housing Revenue Account and improving its housing services.  Stock?condition surveys had been undertaken covering nearly 97% of homes and non?decency reduced to just 1.5%.  The data had shaped a clear investment pathway that would maintain 100% decent homes standard in 2026/27. 

The Portfolio Holder informed Council that by the end of this financial year, the Council would have delivered 623 new homes since 2014, with a further 281 homes currently under construction.  With substantial grant funding secured of over £40Million including Homes England funding of £38million, the target of delivering 1,000 new homes by 2029/2030 was being worked towards ensuring that more families in Stevenage could have access to safe, secure and affordable homes.

It was noted that the Business Plan committed £138million over the next five years, and £745 million over the next 30 years to maintain and improve homes including major investment in building safety, fire compliance, and energy efficiency, with firm commitments to deliver an energy or EPC?C rating across all council homes by 2030.

In relation to rents for next year, in line with the Government’s 10?year rent policy, rents would increase from April by 4.8%, equating to average weekly rises of £5.89 for social rent, £8.85 for affordable rent, and £7.26 for shared ownership.  The increases would provide essential income required to maintain homes, support compliance programmes, and invest in measures reducing living costs for tenants.

In relation to service charges, it was noted that only the actual cost of providing services would be recharged.  Two?thirds of tenants would pay no service charge at all; and for most who did, the increase would be less than 50p per week.

The Portfolio Holder advised that the 2026/27 HRA Capital Programme proposed £75.6 million of investment, including £35.6 million of borrowing, to support major works, to existing and delivery of new homes.  The capital programme also supported progress toward delivering the EPC?C energy rating by 2030, maintaining momentum on the Warm Homes retrofit programme, and continuing new?build delivery.

In respect of revenue, the budget included £700,000 of targeted growth for service improvements and regulatory compliance, alongside £496,000 of identified efficiencies across staffing structures, ICT licensing, cleaning and support costs.

In seconding the motion, Councillor Jeannette Thomas, Portfolio Holder for Resources and Performance and Deputy Leader advised that the budget made five clear promises:

·         Safety - The budget included programmed door, lift inspection and repair, water?system checks; targeted fire remedials; and the operational changes required by Awaab’s Law so damp and mould cases were dealt appropriately to support the Council’s improvement journey towards securing a C1 grading with the Regulator of Social Housing.

·         Warmer homes at lower running costs.  The worst?performing stock would be prioritised  ...  view the full minutes text for item 12