The Housing, Economy and Business Committee is scheduled to convene on 14 January 2026 to discuss a range of housing-related matters. Key agenda items include proposals for the continuation of the affordable homes acquisition programme, proposed changes to housing rents and other charges for the upcoming financial year, and the approval of a long-term Housing Revenue Account Business Plan.

Affordable Homes Programme

The committee is set to consider proposals aimed at expanding the council's affordable homes acquisition programme. This initiative is part of the council's commitment, outlined in its Ambitious for Sutton corporate plan, to increase the supply of affordable housing and support homeless households. The report details plans to acquire approximately 30 new homes in 2026/27, with a target of acquiring 100 new homes by 2029/30. These acquisitions are intended to provide permanent homes for local residents currently in temporary accommodation, thereby reducing council waiting lists and alleviating pressure on the council's temporary accommodation budget. The programme will be supported by a combination of Local Authority Housing Fund (LAHF) grant funding and non-grant acquisitions.

Housing Rents and Other Charges 2026/27

A report will be presented detailing proposed changes to rents and other housing-related charges for the 2026/27 financial year. This includes adjustments to rents for garages, estate services, and pitches at the council's Traveller site, for properties held both within and outside the Housing Revenue Account (HRA). The HRA is a ring-fenced account that records all income and expenditure related to the council's role as a landlord. The proposed rent and service charge changes are crucial for the HRA estimates for 2026/27 and will contribute to the council's overall budget setting. The report outlines a proposed increase for council dwelling rents by 4.8%, with a recommendation to implement the maximum rent convergence formula on dwellings that remain below the target rent after this increase. Increases are also proposed for garage rents and parking space rents by 5.3%. Notably, charges for heating and hot water are proposed to be reduced by 50%.

Housing Revenue Account Business Plan 2026/27-2055/56

The committee will consider the approval of a new Housing Revenue Account (HRA) Business Plan for the period 2026/27 to 2055/56. The HRA is a ring-fenced account that ensures income from rents and housing charges is reinvested directly into managing, repairing, and improving the council's housing stock. This long-term financial framework is essential for maintaining and improving the council's housing stock, meeting statutory duties, and supporting the Ambitious for Sutton priority of delivering quality, safe, and affordable homes. The plan outlines how the council, working with Sutton Housing Partnership (SHP), will fund essential repairs, estate improvements, building safety compliance, and major programmes to enhance energy efficiency. It also details plans for delivering new council homes through regeneration, development, and property acquisitions. The report highlights that while the HRA revenue position is stable, the capital programme faces a significant funding gap in the first five years, necessitating careful prioritisation of works.

HRA Major Works Contract Approval - Kitchens & Bathrooms

Approval is sought to enter into a major works contract for the installation of new kitchens and bathrooms in tenanted homes. The proposed contract, funded through the Housing Revenue Account (HRA) capital programme, is with Arc Group and has an estimated value of up to £4.4 million. This initiative aligns with the council's corporate plan to ensure all council housing is safe, sustainable, and of good quality. The works will include comprehensive replacements of kitchen and bathroom components, with a strong emphasis on resident communication and social value.

Housing Revenue Account (HRA) Major Works - Fire Safety

The committee will consider awarding major works contracts to two contractors, AD Construction Group and E&C Construction, for the completion of fire safety works. These contracts, with a proposed total value of up to £2.2 million, are funded through the HRA capital programme. This action is a direct response to the council's commitment to ensuring all council housing is safe and meets the latest quality and safety standards, as outlined in the Ambitious for Sutton corporate plan. The works will address remedial actions identified through the council's Fire Risk Assessment (FRA) and Fire Door Inspection (FDI) programmes, with leaseholder consultation being a key part of the process.

Shanklin Village - Proposed Major Works

Approval is sought to award a major works contract to APC Building Services Ltd for significant enhancements at Shanklin Village. The proposed contract value is up to £4,981,000, including a 15% contingency. These works encompass damp and mould remediation, concrete walkway repairs, and estate enhancement initiatives across the 404 homes at Shanklin Village, which includes 104 leasehold properties. This project directly supports the council's corporate plan objective of maintaining and improving council homes to ensure they are safe, sustainable, and of good quality. The works have been identified through extensive surveys and resident feedback, and leaseholders will be consulted regarding their contribution to the costs.

Exclusion of the press and public

The committee will consider a motion to exclude the press and public from the meeting for specific agenda items. This is to allow for the discussion of reports that may contain exempt information, as defined by the Local Government Act 1972.