The Gospel Oak District Management Committee met on Wednesday, 7 January 2026, to discuss the Housing Revenue Account (HRA) budget for 2026/27, including proposed rent and service charge increases. The committee was also scheduled to consider the registration of Tenants' and Residents' Associations.

Registration of Tenants' Associations and Co-option of Tenant Representatives

The committee was scheduled to review a list of Tenants' and Residents' Associations (TRAs) that had satisfactorily completed the registration process. This list, detailed in Appendix A of the public reports pack Public reports pack 07th-Jan-2026 19.10 Gospel Oak District Management Committee.pdf, included the names of representatives to be co-opted onto the DMC. Additionally, Appendix B was to outline TRAs whose registrations had lapsed, with information on the requirements for re-registration, including holding an Annual General Meeting.

January DMC HRA Budget 2026/27 and Rent Setting Report

A significant portion of the meeting was dedicated to discussing the Housing Revenue Account (HRA) budget for 2026/27 and draft recommendations for rent and service charges. The report, presented by the Director of Finance, summarised the HRA's financial position and sought the DMCs' views on proposed changes.

The report highlighted the financial pressures on the HRA, including the impact of new regulations such as the Fire Safety Act 2021, Building Safety Act 2022, and the Social Housing (Regulation) Act 2023, without additional government funding. It was noted that the HRA had lost an estimated £201 million in rental income since 2016 due to policy changes.

Rent Increases: The report outlined proposals for rent increases for the upcoming financial year. The primary recommendation was to increase social housing rents by 4.8%, which equates to the Consumer Price Index (CPI) plus 1%. This increase was projected to cost the average two-bedroom property an additional £7.04 per week.

The report also discussed the concept of rent convergence, a government consultation that could allow rents below a formula rent to increase by an additional amount annually until they reach that level. The council was seeking views on potential convergence increases of £1 or £2 per week, in addition to the CPI + 1% increase. The report detailed the potential impact of these increases on income and the HRA reserve. For instance, a £1 per week convergence increase was estimated to raise income by £1.2 million on top of the CPI + 1% increase, reducing the drawdown from reserves from £5 million to £3.8 million. A £2 per week convergence increase was projected to raise income by £2.3 million, reducing the reserve drawdown to £2.7 million.

Service Charges: Proposals were also presented for increases in tenants' service charges, covering services such as caretaking, CCTV, communal lighting, communal mechanical and electrical maintenance, grounds maintenance, and responsive housing patrols. The report indicated that these increases were intended to fund the rising costs of providing these services, with an overall projected generation of £1 million. Specific increases included a 5% rise for caretaking (62p per week) and a 10% rise for grounds maintenance (25p per week).

Other Fees and Charges: The meeting was also scheduled to consider increases in other fees and charges. Garage rents were proposed to increase by £2 per week, bringing the cost for tenants to £20 per week. Commercial garage rents were set to increase by 11%. Other fees and charges, including estate parking spaces, visitor permits, shed and cupboard rentals, allotment rentals, and leaseholder charges, were proposed to increase by 3%.

Heating Pool: The report recommended freezing heating scales at 2025/26 levels for the 2026/27 financial year. This decision was made after the heating pool deficit, incurred due to heating charges being less than actual costs during 2022/23, had been repaid. However, the report acknowledged the uncertainty of future gas prices and the risk of the heating pool returning to a deficit if prices rise significantly.

Savings: The report noted that the garage rent increase was a continuation of a previous savings programme. Additionally, a reduction in the bad debt provision budget by £0.9 million was proposed due to improved arrears positions. A planned drawdown from reserves of up to £5 million was recommended for 2026/27 to balance the budget, with this amount potentially reducing if rent convergence was implemented.

The report also included an equalities impact assessment and information on affordability and support available to tenants facing financial difficulties. The committee was asked to provide feedback on all proposed changes.