The Kentish Town 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 (TRAs).

Registration of Tenants' and Residents' Associations

The committee was scheduled to review the registration status of various Tenants' and Residents' Associations (TRAs). Appendix A of the Public reports pack listed those associations that had successfully completed the registration process, along with the names of their representatives and substitutes who were to be co-opted onto the committee. Appendix B detailed TRAs whose registrations had lapsed, with a note that these groups would be referred to the Housing Officer for support in re-registering.

HRA Budget 2026/27 and Rent Setting

A significant portion of the meeting was dedicated to the Housing Revenue Account (HRA) budget for 2026/27 and proposals for rent and service charges. The report, detailed in the January DMC HRA Budget 26-27 document, outlined the financial position of the HRA and presented draft recommendations for rent and service charge adjustments to be made to the Cabinet.

The report highlighted the challenges faced by the HRA, including the need to comply with new regulations such as the Fire Safety Act 2021, Building Safety Act 2022, and the Social Housing (Regulation) Act 2023, without additional funding. It also noted the impact of past rent policies, which had resulted in a significant loss of potential income that could have been reinvested into housing stock.

Proposed Rent Increases: The report detailed 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 estimated to add approximately £7.04 per week to the average two-bedroom property.

Additionally, the report discussed the concept of Rent Convergence, a government initiative that could allow rents below a certain formula rent to increase by an additional amount annually. The report presented two options for rent convergence: an additional £1 per week or an additional £2 per week, on top of the CPI + 1% increase. These convergence options were presented as a means to help recover lost income and improve the HRA's financial resilience. The report sought the committee's views on these proposed rent increases.

Proposed Service Charge Increases: The report also outlined proposed increases to tenants' service charges for various services, including caretaking, CCTV, communal lighting, mechanical and electrical maintenance, grounds maintenance, and responsive housing patrols. These increases were intended to cover the rising costs of providing these services, with specific percentage increases detailed for each service. For example, the grounds maintenance charge was proposed to increase by 10% to fund the insourcing of horticulture work. The committee was asked for its views on these proposed service charge adjustments.

Other Fees and Charges: The meeting was also scheduled to consider proposed increases to other fees and charges. Garage rents were proposed to increase by £2 per week, bringing the cost to £20 per week for tenants. Commercial garage rents were also set to increase by 11%. Other fees and charges, including estate parking, visitor permits, shed and cupboard rentals, and allotment rentals, were proposed to increase by 3%. A full list of these proposed changes was available in Appendix D of the January DMC HRA Budget 26-27 document.

Heating Pool: The report recommended freezing heating scale charges at their 2025/26 levels for the 2026/27 financial year. This decision was made despite the inherent risk of future price rises due to volatile international energy markets, as a previous deficit in the heating pool had been repaid.

Savings: The report indicated that the garage rent increase was a continuation of a savings measure from previous years. Additionally, a reduction in the bad debt provision budget by £0.9 million was proposed due to improved arrears performance. The report also noted that a planned drawdown from reserves of up to £5 million might be necessary to balance the budget for 2026/27, with this amount potentially reducing if rent convergence measures were implemented.

The committee was asked to provide feedback on all proposed savings.

Affordability and Support: The report acknowledged that while rent and service charge increases would be funded for tenants receiving full housing benefit or universal credit, some residents might face affordability issues. It encouraged committee members and tenants to contact the council if they were experiencing financial hardship, highlighting the availability of Welfare Rights and Income teams for support.

The committee was provided with a list of consultation questions in Appendix E of the January DMC HRA Budget 26-27 document to guide their feedback on the proposed rent and service charge settings.