The Scrutiny Homes Sub-Committee was scheduled to discuss the financial outlook for the Housing Revenue Account and the Housing General Fund for the upcoming year, as well as review the Cabinet's responses to previous recommendations made by the committee. The meeting also included an update on the Sub-Committee's work programme for the 2025-26 municipal year.

Update on the Housing Revenue Account and Housing General Fund Budgets 2026-27

The Sub-Committee was scheduled to review information regarding savings and growth proposals for both the Housing Directorate General Fund Budget and the Housing Revenue Account Budget. This review was intended to inform feedback for the Scrutiny & Overview Committee's Budget Scrutiny session on 10 February 2025. The report detailed proposed savings totalling £5.991 million for 2026-27, comprising £3.94 million from the Stabilisation Plan, £1.113 million from the Target Operating Model (TOM) savings, and £0.938 million from business-as-usual activities. Growth proposals for 2026-27 amounted to £10.6 million, including £4 million for nightly let accommodation due to demand and market price pressures, and £6.6 million to align with new grant funding.

The report also highlighted the forecast outturn for the Housing General Fund, indicating an anticipated underspend of £3.1 million against savings targets, despite ongoing demand pressures in temporary accommodation. It noted that London boroughs were experiencing record levels of homelessness, with Croydon ranking seventh in the number of households in temporary accommodation. The report detailed actions being taken to manage increasing demand, including an 'appointment only' system for homelessness assessments and promoting self-service housing options. Cost management measures for temporary accommodation were also outlined, alongside a significant gap between the Council's nightly paid rates and Housing Benefit subsidy payments.

For the Housing Revenue Account, the budget principles for 2026-27 were to be discussed, with the full Business Plan and budget to be presented to Cabinet on 11 February 2026. The budget was based on a property profile of 13,347 social rent, 296 affordable rent, and 7 shared ownership properties. A rent increase of 4.8% was assumed, in line with the Social Rent Policy. The draft revenue budget projected an income of £107.9 million against an expenditure of £101 million. The report also noted that staffing budgets had been increased to support statutory demands, with no savings targets in this area. A proposed £24 million budget for responsive repairs was detailed, which was noted as being above the London average. The draft capital budget included a £45 million allocation for major works, including fire and safety, and continued provision for the Regina Road project and an acquisitions programme.

The forecast outturn for the Housing Revenue Account for Period 8 (November 2025) indicated a breakeven position. Responsive repairs costs were being closely monitored, with a forecast of 11,000 jobs for the remainder of the year. Disrepair claims remained a concern, with 1,124 open cases at the end of November. The new grounds maintenance contract was noted as having gone live on 1 November 2025. The HRA capital programme was forecasting an underspend for 2025-26 due to the profiling of the Regina Road project, with a reprofiling planned for the 2026-27 budget setting. The Major Repairs and Improvements programme was on track to be fully committed and spent, with intentions to move to a three- or five-year budgeted capital works programme. The Regina Road project's financial position was being used to inform the revised HRA Business Plan, and Pellings was supporting the procurement of the main build contractor. The property buy-back programme was forecasted to purchase 103 units in the financial year.

Homes Scrutiny Recommendations - Cabinet Response

The Sub-Committee was scheduled to be presented with the Cabinet's response to recommendations made at a previous meeting on 19 June 2025. The purpose of this agenda item was for the Sub-Committee to note the responses provided and consider if any further action was necessary. The report indicated that the Cabinet's responses, including reasons for rejected recommendations and action plans for accepted ones, would be detailed in an appendix.

The appendix outlined the Cabinet's responses to specific recommendations concerning the Stabilisation Plan. Recommendation HE.1.25/26 regarding specific housing-related targets within the Stabilisation Plan was rejected, with the Cabinet stating that a Target Operating Model update had been provided. Recommendation HE.2.25/26, to extend post-placement contact with residents in out-of-borough placements, was also rejected, with the Cabinet explaining that this was a contractual obligation of the provider. Recommendation HE.3.25/26, to explore compensation clauses in out-of-borough contracts for failure to deliver agreed properties, was rejected, with the Cabinet stating that payment was contingent on suitability and assessment, and that levying further charges would be commercially unacceptable. Recommendation HE.4.25/26, to undertake a wider impact assessment of housing actions on other departments and the voluntary sector, was rejected, with the Cabinet suggesting that issues should be raised through the existing Homelessness Forum. Recommendation HE.5.25/26, to include extra care and sheltered accommodation voids in the Stabilisation Plan to encourage downsizing, was partially accepted, with the Cabinet noting that elderly residents were offered sheltered accommodation where suitable and that a programme was underway to promote downsizing.

Work Programme 2025-2026

This item was to provide an update on the Sub-Committee's work programme for the 2025-26 municipal year. The Sub-Committee was asked to note the completed work programme, as detailed in Appendix 1 of the report, and to consider whether to request an additional meeting from the Scrutiny & Overview Committee. The report noted that the 26 January 2026 meeting was the final scheduled meeting for the municipal year, and any further meetings would require a formal request. Members were also invited to suggest additional items for the work programme, with a recommendation to limit substantive agenda items to two per meeting to ensure effective scrutiny. Consideration was also to be given to inviting specific individuals or representatives to future meetings.

The work programme itself listed several items for the 2025-26 municipal year, including the Stabilisation Plan, an update on KPIs focusing on repairs, a review of the PSR Licensing Scheme, an update on the Stabilisation Plan, a review of the Allocation Policy, and a standing item on Finance and KPIs. It also included a review of Registered Social Landlords, focusing on housing supply, customer experience, and allocations. The agenda for the 26 January 2026 meeting was to include a General Fund Budget Deep Dive and a review of the Housing Revenue Account Budget/Business Plan, both forming part of the budget setting process and feeding into the Scrutiny & Overview Committee meeting on 10 February 2026. A note indicated that a meeting scheduled for 7 April 2026 was to be moved to 29 September 2025.