The Hampstead District Management Committee met on Wednesday 15 January 2025. The agenda for the meeting covered the formal registration of tenants' associations and the co-option of tenant representatives. It also included a report about the Housing Revenue Account (HRA) budget for 2025/26, and sought the committee's views on proposed rent and service charge increases.

Housing Revenue Account

The Housing Revenue Account (HRA) is a ring-fenced account containing the income and expenditure arising from the council's activities as a landlord, which must balance each year. The committee was asked to consider a report that summarised the HRA's financial position, and made recommendations on rent and service charge increases to address a projected funding shortfall.

The report explained that, without government funding, Camden Council will need to make difficult decisions to ensure the account remains solvent.

The 2025/26 budget must focus on the financial sustainability of the HRA, eradicating overspends, delivering on MTFS (medium term financial strategy) savings and replenishing the reserves. In absence of any external funding interventions, for the Housing Revenue Account to remain financially stable the Council will need to continue to take difficult decisions.

The report outlined various cost pressures including inflation, increased employer national insurance contributions, and the cost of complying with new legislation including the Social Housing (Regulation) Act 2023 ¹.

The report set out the options considered to fund the shortfall, and asked the committee for its views on whether to increase rents and/or service charges.

The report also invited the committee to consider a proposed 35% reduction to heating charges. The report explained that this would be possible because the cost of energy has fallen since heating charges were last set. It also highlighted the uncertainty of future energy prices.

The future pricing of gas is highly uncertain due to volatile international markets, geopolitical tensions, and climate-related factors. There is a significant risk of prices rising sharply from October 2025...

The report proposed increasing garage rents by £2 per week. The report explained that this would bring charges in line with other London boroughs. It also proposed increasing other fees and charges, including the cost of estate parking, keys and fobs, and allotment rentals by 3% in line with inflation.

The report also outlined proposals for savings that could be made to the HRA budget. These included increasing the expected income from leaseholders and commercial properties, as well as making efficiency savings.

Registration of Tenants' and Residents' Associations

The committee was provided with a list of Tenants and Residents Associations that had successfully completed the registration process. The document also listed the names of the representatives and substitutes from each association who were eligible to be co-opted onto the committee. A second document listed the names of the associations whose registrations had lapsed, and explained how they could re-register.

Agenda frontsheet 08th-Jan-2025 18.30 Hampstead District Management Committee

Public reports pack 08th-Jan-2025 18.30 Hampstead District Management Committee

Hampstead A List 16 12 2024

Hampstead B List 16 12 2024

January DMC HRA Budget 25-26