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Cabinet received a report on the proposals for
the Housing Revenue Account (HRA) budgets and rent setting for
2026/27, to be considered by Council on 21 January
2026.  The report also gave an update on
the formula for setting rents for 2026/27, proposing the HRA rents
for 2026/27 and the HRA service charges for 2026/27.
 
The Portfolio Holder for Housing also gave an
update on the 2026/27 HRA budget, incorporating the decisions
included in the HRA Business Plan report that was approved at the
Cabinet meeting on the12 November 2025 and the 2026/27 HRA fees and
charges approved on the 8 October.
 
Cabinet were advised that the budget assumed a
CPI+1% rent increase (4.8%) from April 2026 with an average weekly
rise of £6.72 for social rents and £8.85 for affordable
rents.
 
Members were advised that a minimum reserve of
£10million had been set to mitigate financial and operational
risks, ensuring resilience while progressing towards EPC-C
compliance and supporting the Council’s long-term housing and
sustainability objectives.
 
The Portfolio Holder for Resources and
Performance advised that the medium-term strategy reflected
significant investment needs and borrowing to maintain housing
stock and deliver new homes.  She
advised that risks remained around interest rate volatility, rent
policy uncertainty and regulatory compliance alongside ambitious
saving targets.  Future funding had also
been earmarked for major repairs and compliance upgrades to ensure
tenants had the warm and safe homes they deserved alongside funding
for new development which would deliver around 320 homes.
 
In response to a question regarding the
reduction in social housing numbers as a result of Right to Buy
legislation, The Strategic Director and Chief Financial Officer
confirmed that the Government had reduced the Right to Buy discount
available to tenants from £101,000 to £34,000 which
should reduce the number of applications going forward.  She also advised that the Business Plan showed a
net increase in properties which would help support the housing
register.
 
It was RESOLVED:
 

1.   
That HRA dwelling rents be increased (week commencing 1 April 2026)
by 4.8%. This equates to an average increase of £6.72 for
social rents, £8.85 for affordable rents and £8.19 for
Low Start Shared Ownership homes per week (based on a 52-week year)
and assuming rent convergence with a £1 per week cap is
approved by the Government.

2.   
That the 2026/27 service charges be approved as set out in
paragraph 4.2.

3.   
That the HRA budget for 2026/27, set out in Appendix A, be
approved.

4.   
The 2026/27 growth options as set out in section 4.4 be
approved.
 

5.   
That the 2026/27 Fees and Charges as set out in Appendix B be
noted.

6.   
That the revised minimum levels of balances for 2026/27 shown in
Appendix C be approved.

7.   
That the Rent Increase Equalities Impact Assessments (EqIA) appended to the report in Appendix D be
approved.

8.   
That the contingency sum of £500K, within which the Cabinet
can approve supplementary estimates, be approved for 2026/27.
 

9.   
That the decisions taken on recommendations 2.1 – 2.8 above
be referred to the Overview and Scrutiny Committee for
consideration in accordance with the Budget and Policy Framework
rules in the Council’s Constitution.

10.That key partners
and other stakeholders be consulted and their views considered as
part of the 2026/27 budget setting process.