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Cabinet received a report updating Members 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.
 
In presenting the report, the Portfolio Holder
for Housing advised that the proposed 4.8% rent increase from April
2026 equating to an average weekly rise of £5.89 for social
rents, £8.85 for affordable rents and £7.29 for shared
ownership homes and remained far below private rents.  She advised that the budget ensured protection for
tenants and home improvements would continue.
 
The Portfolio Holder for Resources proposed
that recommendation 4 be amended to request approval to the HRA
budget for 2026/27 as set out in Appendix A but as amended for
additional salary costs of £385,020.  This would mean that the HRA budget for 2026/27
was a deficit of £243,120 rather than a surplus of
£141,900.
 
Members made the following comments
including:
 

·        
The recent meet the builder event for officers, members and
residents relating to the redevelopment of the oval was welcomed.
The project was an ambitious but exciting initiative which would
regenerate the area and would provide great places to live and
which were also meeting climate standards.  The regeneration of the area would also include a
new Community Centre;

·        
The warm homes initiative would ensure the retrofit of hundreds of
properties and would help combat fuel poverty and lower energy
bills;

·        
Compliance measures were being introduced to protect residents from
damp and mould;

·        
The Council had an ambitious programme to deliver 325 new homes in
the next five years and 1470 homes over the next 30 years.
 
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 £5.89 for
social rents, £8.85 for affordable rents and £7.29 for
Low Start Shared Ownership homes per week (based on a 52-week
year), subject to the Government not publishing rent regulations on
rent convergence allowing an additional £1 per week for
un-converged homes.

2. 
That the implementation of rent convergence for 2026/27 rents (as
set out in the December Draft Budget report and paragraph 4.1.6 of
this report), be approved if regulations are published by the date
of the Full Council meeting in January 2026;

3. 
That the 2026/27 service charges be approved as set out in
paragraph 4.2.

4. 
That the HRA budget for 2026/27, set out in Appendix A, be approved
and as amended for additional salary costs of
£385,020;

5. 
That the 2026/27 growth options as set out in section 4.4 be
approved;

6. 
That the changes from the draft budget in section 4.6 be
approved;

7. 
That the 2026/27 Fees and Charges as set out in Appendix B be
noted.

 
8. 
That the revised minimum levels of balances for 2026/27 shown in
Appendix C be approved.
 
9. 
That the Rent Increase Equalities Impact Assessments (EqIA) appended to this report in Appendix D be
approved;
 
10. 
That the Capital Strategy detailed in Appendix E be approved,
including total spend for 2026/27 of £75.6Million and
borrowing to finance capital schemes of £35.6Million.
 
11. 
That an additional £1.5Million budget be added to the 2025/26
capital programme, detailed in section 4.8.3, to enable the
purchase of 5 additional homes in the Shephall View scheme, to be funded by a budget
virement of £330K from the Oval scheme and the remainder from
grant from Homes England.
 
12. 
That delegated authority be given to the Strategic Director (RP),
following consultation with the Portfolio Holders for Housing and
Housing Development and Resources & Performance, to complete
final negotiations for the purchase of the additional properties,
within the agreed total budget.
 
13. 
That the contingency sum of £500K, within which the Cabinet
can approve supplementary estimates, be approved for 2026/27.
 
14. 
That the comments made by the overview and Scrutiny Committee as
part of its work in accordance with the Budget and Policy Framework
rules in the Council’s Constitution be noted.