A slide presentation on the Housing Revenue Budget 2026/27 and its Business Plan will be delivered at the meeting.
Minutes:
Danny Rochford (Head of Finance – Housing) introduced the report which outlined the 2026/27 budget for the Housing Revenue Account (HRA). The service faced increasing demand alongside challenges arising from the condition of the housing stock, evolving safety requirements, additional regulatory pressures and the wider climate?change agenda. Financial pressures included inflation, rising interest rates and the impact of wages and unemployment, set against the confirmation of the national rent policy for a ten?year period from 2026/27.
The Housing Revenue Account ten?year business plan was based on a tenanted stock of 11,800 homes and 5,090 leasehold properties, with planned investment of £940 million in repairs and capital works. A minimum general balance of £5 million had been maintained, supported by cumulative efficiencies of £3.9 million. For 2026/27, the budget assumed pay inflation of 2.5%, price and contract indexation of 3%, a void rent loss of 1.3%, a provision for tenant arrears of 87% and an interest rate of 4.5% on new borrowing. Rents were increasing by 4.8%.
Reserves had increased by £0.9 million over the previous two years and while £100 million was expected to be borrowed in the current year, no new borrowing was planned for the following year, contingent on development sales. The total value of the housing portfolio stood at £1.4 billion, with £347 million in outstanding debt and arrears amounting to £7.6 million.
Councillor Jacolyn Daly mentioned that she was disappointed that the HRA report was not included within the agenda pack, as Committee Members were not able to read it in advance of the meeting. She stressed the importance of having all the papers in advance.
Councillor Jacolyn Daly highlighted the difference between a 4% social rent increase and a 16% increase in the private sector. She sought clarification on the recommended approach, which aimed to minimise rent increases while protecting essential services, and asked about the £1.52 per week increase in service charges and the options available when seeking to set a balanced budget. Danny Rochford explained that the council faced significant financial challenges and had limited options. The primary available measure was to increase the Housing Revenue Account’s main income stream, which was rents. He stated that the council had worked hard to keep rent increases as low as possible but that successive years of financial pressure meant an increase was now necessary to ensure the HRA remained adequately resourced and financially sustainable.
Councillor Jacolyn Daly asked Richard Shwe whether he was satisfied with the rent increase level that had been set. Richard Shwe responded that it had been difficult to produce a balanced budget and that the increase was at the higher end of what the council would have preferred. He explained that service structures were being reviewed to ensure they were fit for purpose. In neighbourhood services, it had become clear that the use of temporary staff meant residents lacked continuity, and he noted that the service had moved from one housing officer per 800 homes to one per 400.
Councillor Adronie Alford referred to Appendix 3, page 172 of the 9th February 2026 H&F Cabinet agenda and asked why leaseholder contributions appeared to remain static until 2029/30 before rising sharply. Danny Rochford explained that the increase reflected the level of rising investment into the housing stock and that contributions were not recovered all in one year, which meant it took time for charges to reach the higher level. Councillor Adronie Alford noted that leaseholders’ bills had risen previously and asked whether costs would be managed more stringently. Councillor Daly highlighted what appeared to be a threefold increase to leaseholders. Danny Rochford clarified that a higher level of contribution was linked to increased investment across more homes, but this did not mean leaseholders would face a three?times increase individually. Richard Shwe added that much of the stock was more than 120 years old and had not received the investment it required. Housing had now become a regulatory service, and work was under way to strengthen the leaseholder team, including enforcement officers. Councillor Frances Umeh stated that the council did everything it could to support leaseholders, including providing free fire doors.
Councillor Laura Janes sought more information about the consultation described in Appendix 8 of the HRA report in the 9th February 2026 H&F Cabinet Agenda. Danny Rochford reported that engagement had taken place with the housing representatives’ forum and the sheltered housing forum. He acknowledged that residents understandably disliked rent increases but said they had a good grasp of the wider financial context, and the consultation had helped build understanding. He described the overall response as one of reluctant acceptance. Councillor Umeh emphasised that the forum discussions were detailed and thorough and commended Danny Rochford’s presentation. Richard Shwe added that improvements were still needed in grounds maintenance and that the service was aware of this.
Councillor Laura Janes asked for examples of how the council proactively communicated changes through multiple channels. Richard Shwe explained that the council had undertaken work on the disability strategy and that more information would be presented at the next housing forum meeting, with the option of bringing the material to the Policy and Accountability Committee. Councillor Umeh added that discussions were held at the forum about taking materials to resident groups.
Councillor Jacolyn Daly asked whether the proposed mitigations would be presented to renters at the time of the rent increase. Councillor Umeh explained that the communications team would outline the different channels through which information would be provided at the time of rent increases.
Councillor Sally Taylor asked what proportion of the housing stock was leasehold and what happened when leases expired. Danny Rochford confirmed that leasehold properties accounted for around 28% of the stock. Richard Shwe added that the council operated a bespoke programme to support leaseholders with extensions and was involved during property transfers.
Councillor Asif Siddique asked about the increasing demand for services, particularly concerning damp and mould, and whether there was data to demonstrate improvements. Richard Shwe explained that tenant satisfaction measures showed significant progress, rising from 37% three years earlier to 62.7%, with 15 out of 22 measures placing the service in the top London quartile. He confirmed that another update on tenant satisfaction measures would be provided to the Committee in November. Councillor Siddique asked whether hard?copy feedback forms were available, and Richard Shwe confirmed that they were, noting that the work was ongoing and that further statistics would be provided.
RESOLVED That: