Decision Maker: Cabinet

Outcome: Recommendations approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: January 21, 2026

Purpose: To report the Housing Revenue Account Business Plan, Revenue Budget, Capital Works Programme and increase to rent and service charges.

Content: That Council be recommended to: 1.      Adopt the Business Plan set out in Appendix 1 to the report as the approved Housing Revenue Account (HRA) Business Plan including: a.    The revenue budget for 2026-2027 at Appendix 1 to the report. b.    The Capital Programme for 2026-2027 to 2030-2031 at Appendix 2 to the report for which detailed investment plans are set out in section 6 of the report.   2.      Approve the implementation of an increase of 4.8% 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 2026.   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 to a maximum of 4.8%.   5.      Approve a management allowance to Wolverhampton Homes for 2026-2027 of £53,000,000.   6.      Approve management allowances to tenant managed Managing Agents for 2026-2027 to a maximum of the following sums: ·        Bushbury Hill Estate Management Board                               £2,200,000 ·        Dovecotes Tenant Management Organisation (TMO)           £1,350,000 ·        New Park Village (TMO)                                                              £ 380,000   7.      Delegate authority to the Deputy Leader: City Housing in consultation with the Executive Director of Economy to approve any additional properties required for subsequent phases of the House Project.   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 are appropriate and adequate for the forthcoming financial year.   3.      The HRA revenue budget includes provision of £300,000 for those tenants who may experience financial hardship due to the rent increase and to support the single person household downsizing initiative. This is in addition to support available via Housing Managing Agents’ Hardship Funds, City of Wolverhampton Council (CWC) Household Support Fund and Council Tax Hardship Support Fund.   4.      That, approximately 80% of tenants have full or partial housing costs covered by Housing Benefit or Universal Credit and therefore would receive government support to pay all or part of the rent increase.   5.      That, due to HRA budget pressures a comprehensive mid-term review of the HRA Business Plan, medium term capital and revenue budgets would be undertaken and reported on during 2026-2027.   6.      The adoption of formula rents for properties re-let in line with the Rent Standard.   7.      The intention to recommend the implementation of rent convergence in 2027.   8.      That the Revised Affordable rent policy for New Build Wolverhampton Council housing is no longer valid and would not be used going forward.