Purpose

Cabinet is recommended to
review and agree the proposals for the HRA Budget for
2025/26
 
 

Content

Cabinet:

(1)         
agreed a HRA dwelling rent increase of 2.7%
(September CPI + 1%) in line with The Regulator Social
Housing’s Rent Standard and agree that on average rents will
increase by £3.44 from £127.29 to £130.73 per
week, with effect from 1st April 2025;

(2)         
agreed the level of tenant service charges as set
out in paragraph 3.12 of the report so as to recover all costs from
tenants receiving the service;

(3)         
agreed an increase in garage rents of 5%
(£0.87) for residents and 30% (£5.72) for
non-residents, from 1st April 2025;

(4)         
noted the increase in shared ownership rents in line
with the provisions of the relevant lease;

(5)         
reviewed and noted the proposals for the HRA Budget
for 2025/26, as set out in section 3.9 of the report;

(6)         
agreed to increase the rent and service charges for
sheltered accommodation by 2.7%, in line with the rent increase for
general needs council housing;

(7)         
noted that temporary accommodation rent charges will
continue to be linked to Local Housing Allowance (LHA) levels;
and

(8)         
agreed to increase charges for travellers’
sites by 2.7%, in line with the rent increase for general needs
council housing.
 
Options & Alternatives
Considered

The 2023/24 Rent Cap resulted in a £2.5m reduction in income
collected within the HRA. The reduction is compounded for future
years and, therefore, affected the resources available for capital
investment. The effect of a below inflation increase would further
reduce the resources available and impact how effectively the
Housing service and could manage and invest in the borough’s
housing stock.
Alternative rent
increases were considered in setting the budget, but any reduction
to the rent policy set by The Regulator of Social Housing would
result in a requirement for additional savings to be made, which
would impact on the services provided to tenants. A reduction to
the Rent Standard would also have a long-term impact on future rent
levels and therefore income.