Purpose

To report the Housing Revenue Account Business
Plan, Revenue Budget, Capital Works Programme and increase to Rent
and Services Charges.

Decision

That Council be recommended to:
1.   
Adopt the Business Plan set out at Appendix 1 to the report as the
approved Housing Revenue Account (HRA) Business Plan including:
a.     
The revenue budget for 2025-2026 at Appendix 1 to this report.
b.     
The Capital Programme for 2025-2026 to 2029-2030 at Appendix 2 to
the report that includes the following among the proposed
investment plans:

·      
£98 million for new homes.

·      
£67 million provision for estate remodelling.

·      
£82 million for programmes to high rise estates to include
building safety improvements, infrastructure replacement, and
external works to include energy efficiency.

·      
£110 million for Internal Decency works including
refurbishment of void properties.

 
2.   
Approve the implementation of an increase of 2.7% to social housing
rents in accordance with the Rent Standard and the Welfare Reform
and Work Act 2016 and to give 28 days’ notice to all secure
and introductory tenants of the rent increase from 1 April
2025.
3.   
Approve the rates for garage rents and service charges set out in
Appendix 3 to the report and formally notifies tenants.
4.   
Approve an increase to Shared Ownership rents of 2.7%.
5.   
Approve an increase of £3.0 million to the allowance payable
to Wolverhampton Homes for 2024-2025 to be funded by a virement
from the budget for Capital Financing and Debt repayment. The
virement would increase the Repairs and Maintenance budget by
£2.5 million and the Supervision and Management budget by
£0.5 million.
6.   
Approve a £3.0 increase to the HRA reserve in 2024-2025
funded by a budget virement of £3.0 million from the budget
for Capital Financing and Debt Repayment.
7.   
Approve an allowance to New Park Village for Quarter 4 2024-2025 of
£85,000.
8.   
Approve allowances to Managing Agents for 2025-2026 as follows:
·       
Wolverhampton Homes                                        
£51,700,000
·       
Bushbury Hill Estate Management Board             
£2,105,000
·       
Dovecotes Tenant Management Organisation      £1,305,000
·       
New Park Village                         
                               £370,000
9.   
Delegate authority to the Deputy Leader: City Housing in
consultation with the Executive Director of City Economy to approve
the equity sale of Shared Ownership properties.
That Cabinet notes:
1.   
From 1 April 2020 the Regulator of Social Housing has regulated
social rents charged by Local Authorities as set out in the Rent
Standard 2020. Local authorities are able to apply a rent increase
below the maximum set out in the standard, but the decision would
be taken in the context of the affordability in terms of a balanced
HRA business plan that ensures service delivery and investment can
be maintained over the lifetime of the business plan.
2.   
That, in the opinion of the Section 151 Officer the current levels
of reserves and provisions is appropriate and adequate for the
forthcoming financial year.
3.   
The increasing cost pressures from policy and legislative changes;
Social Housing (Regulation) Act 2023, Building Safety Act (2022),
Fire Safety (England) Regulations 2022, the Housing Ombudsman, and
a shift from reactive to a proactive regulatory regime.
4.   
The HRA revenue budget includes provision of £300,000 for
those tenants who may experience financial hardship due to the rent
increase.
5.   
The adoption of formula rents for properties re-let in line with
the Rent Standard.