The Holborn District Management Committee meeting scheduled for 7 January 2026 was set to discuss the Housing Revenue Account (HRA) budget for 2026/27, including proposed rent and service charge increases. The committee was also scheduled to review the registration of Tenant and Resident Associations (TRAs).

Registration of Tenant and Resident Associations

The meeting was scheduled to consider the registration of Tenant and Resident Associations (TRAs). Appendix A of the report pack listed those TRAs that had successfully completed the registration process and whose representatives were proposed for co-option onto the committee. Appendix B detailed TRAs whose registrations had lapsed, with a note that the Tenant Participation Service would assist these groups in re-registering.

January DMC HRA Budget 2026/27 and Rent Setting Report

A significant portion of the meeting was dedicated to discussing the draft Housing Revenue Account (HRA) budget for 2026/27 and proposed rent and service charge adjustments. The report, presented by the Director of Finance, outlined the financial position of the HRA and included draft recommendations to be made to the Cabinet in January 2026.

The report highlighted that the HRA faces financial pressures due to rising costs and the need to invest in housing stock, while also adhering to new regulations such as the Fire Safety Act 2021, Building Safety Act 2022, and Awaabs' Law. The HRA has experienced a significant loss of rental income since 2016 due to changes in rent policies.

Rent Increases: The report detailed proposals for rent increases for the upcoming financial year. The primary proposal was to increase social housing rents by 4.8%, which equates to the Consumer Price Index (CPI) plus 1%. This increase was estimated to cost the average two-bedroom property an additional £7.04 per week.

Additionally, the report discussed the concept of rent convergence, a government initiative that could allow rents below a formula rent to increase by an additional amount annually until they reach the formula rent level. The council was seeking views on implementing a £1 or £2 per week increase for rent convergence, in addition to the CPI + 1% increase.

• A CPI + 1% increase would generate an estimated £8.1m in additional income, with a projected drawdown of £5m from reserves.
• A CPI + 1% increase plus £1 per week for rent convergence would increase income by £9.3m, reducing the drawdown from reserves to £3.8m.
• A CPI + 1% increase plus £2 per week for rent convergence would increase income by £10.4m, reducing the drawdown from reserves to £2.7m.

Service Charges: The report also outlined proposed increases to tenants' service charges for various services, including Caretaking, CCTV, Communal Lighting, Communal Mechanical and Electrical Maintenance, Grounds Maintenance, and Responsive Housing Patrol. These increases were intended to fund the rising costs of providing these services. For example, the weekly charge for Caretaking was proposed to increase by £0.62 to £13.04, a 5.0% rise. The report noted that a 10% increase in tenant service charges, or 25p per week, was proposed to fund the insourcing of horticulture work by the Green Spaces team.

Other Fees and Charges: Increases were also proposed for garage rents, with a £2 per week rise for tenants, bringing the cost to £20 per week. Commercial garage rents were set to increase by 11%. Other fees and charges, such as estate parking, visitor permits, shed and cupboard rental, and allotment rental, were proposed to increase by 3%. Leaseholder fees and charges were also reviewed.

Heating Pool: The report recommended freezing heating scales at 2025/26 levels for the 2026/27 financial year. This decision was made after the heating pool deficit, created by charges being less than actual costs in previous years, had been repaid. However, the report cautioned that future gas price volatility posed a risk of the heating pool returning to a deficit.

Savings: The report indicated that the garage rent increase was a continuation of a savings measure from the previous financial year. Additionally, a reduction in the bad debt provision budget by £0.9m was proposed due to improved arrears positions. A planned drawdown from reserves of up to £5m was recommended to balance the budget for 2026/27, with this amount potentially reducing if rent convergence is implemented.

The committee was asked to provide feedback on these proposals, with specific questions detailed in Appendix E of the report pack.