Agenda item

That Cabinet agrees:

1. To approve the Housing Revenue Account 2025/26 budget for council homes as set out in Table 1.

2. To approve the HRA 10-year Business Plan for Council Homes (2025/26 – 2034/35) as set out in paragraphs 3 - 4 of this report and Appendices 1 - 5.

3. To approve a rent increase of 2.7% from 7 April 2025 (in line with September 2024 CPI+1%), which equates to an average weekly increase for tenants of £3.65 in 2025/26.

4. To approve an increase to shared ownership rents of 2.7% from 1 April 2025 (in line with September 2024 CPI+1%).

5. To approve changes to tenant service charges to reflect the costs of providing communal services from 7 April 2025, which equate to an average weekly reduction for tenants of £1.32 in 2025/26.

6. To approve a reduction to charges for heating and hot water to reflect the costs of provision of the district heating service from 1 April 2025, which equate to an average weekly reduction for tenants and leaseholders on the scheme of £0.45 (communal heating), £1.99 (tenants’ personal heating) and £3.80 (leaseholders’ personal heating) in 2025/26.

7. To approve an increase to the management fee for temporary on licence properties of 1.7% (in line with September 2024 CPI) from 7 April 2025.

8. To approve an increase to the rent and service charges for hostels of 2.7% from 7 April 2025 (in line with September 2024 CPI+1%).

9. To increase garage charges for council tenants, resident leaseholders, and for other customers from 7 April 2025 by 1.7% (in line with September 2024 CPI).

10. To note that any change to parking charges on housing estates were considered separately with the Council’s parking plans at Cabinet in January 2025.

11. To increase car space rental charges for all customers by 1.7% from April 2025 (in line with September 2024 CPI).

12. To approve an increase in the Leasehold After Sale – Home Buy fees by 1.7% from April 2025 from £232 to £237 (in line with September 2024 CPI).

13. To approve an increase in the Leasehold Property Alterations fees by 1.7% from April 2025.

Councillor Rowan Ree introduced the report setting out the HRA budget and the 10-year Business Plan for Council Homes. Over the following 10 years the Council was going to invest £0.85 billion on new housing across the borough as well as on its property stock, making sure they were efficient, green and comfortable. This was only possible due to successfully managing to get the HRA back onto a sustainable footing and eliminating the structural deficit. As a result, the Council was now able to reduce resident service charges, which was part of this budget.

Councillor Frances Umeh added that as part of this process there was an opportunity to discuss the business plan with residents at both the Sheltered Housing Forum as well as the Housing Representatives Forum and there was positive feedback related to how officers and the team had worked to ensure that there was Ruthless Financial Efficiency and effective management of resources. In addition to their comments on the rent and service charge, they wanted to be noted at Cabinet that they did commend this business plan and were grateful for the work.

Councillor Adronie Alford was pleased that the HRA budget was balancing for this year while using most of the contingency funds. However, she asked for reassurance that there would be enough funds on the budget for any eventuality the following year.

Councillor Ree stressed that every year, as part of the budget setting, they built in new contingencies to use for unforeseen circumstances such as repairs. It was a priority for the Council that residents could live in high quality housing.

AGREED UNANIMOUSLY BY THE CABINET MEMBERS:

That Cabinet agrees:

1. To approve the Housing Revenue Account 2025/26 budget for council homes as set out in Table 1.

2. To approve the HRA 10-year Business Plan for Council Homes (2025/26 – 2034/35) as set out in paragraphs 3 - 4 of this report and Appendices 1 - 5.

3. To approve a rent increase of 2.7% from 7 April 2025 (in line with September 2024 CPI+1%), which equates to an average weekly increase for tenants of £3.65 in 2025/26.

4. To approve an increase to shared ownership rents of 2.7% from 1 April 2025 (in line with September 2024 CPI+1%).

5. To approve changes to tenant service charges to reflect the costs of providing communal services from 7 April 2025, which equate to an average weekly reduction for tenants of £1.32 in 2025/26.

6. To approve a reduction to charges for heating and hot water to reflect the costs of provision of the district heating service from 1 April 2025, which equate to an average weekly reduction for tenants and leaseholders on the scheme of £0.45 (communal heating), £1.99 (tenants’ personal heating) and £3.80 (leaseholders’ personal heating) in 2025/26.

7. To approve an increase to the management fee for temporary on licence properties of 1.7% (in line with September 2024 CPI) from 7 April 2025.

8. To approve an increase to the rent and service charges for hostels of 2.7% from 7 April 2025 (in line with September 2024 CPI+1%).

9. To increase garage charges for council tenants, resident leaseholders, and for other customers from 7 April 2025 by 1.7% (in line with September 2024 CPI).

10. To note that any change to parking charges on housing estates were considered separately with the Council’s parking plans at Cabinet in January 2025.

11. To increase car space rental charges for all customers by 1.7% from April 2025 (in line with September 2024 CPI).

12. To approve an increase in the Leasehold After Sale – Home Buy fees by 1.7% from April 2025 from £232 to £237 (in line with September 2024 CPI).

13. To approve an increase in the Leasehold Property Alterations fees by 1.7% from April 2025.