The Hampstead District Management Committee was scheduled to discuss the Housing Revenue Account (HRA) budget for 2026/27, including proposed rent and service charge increases. The committee was also due to review the registration of Tenants' and Residents' Associations.

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

The meeting was scheduled to review the registration status of various Tenants' and Residents' Associations (TRAs). Appendix A of the report pack listed those TRAs that had successfully completed the registration process as of 17 December 2025, detailing the representatives to be co-opted onto the committee. Appendix B outlined TRAs whose registrations had lapsed, with information on the requirements for re-registration, including holding an Annual General Meeting (AGM) with an independent observer.

DMC Housing Revenue Account Budget Setting 2026/27 and Rent Setting Report

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 summarised the financial position of the HRA and presented draft recommendations for the Cabinet.

The report highlighted that the HRA faces challenges in balancing rising investment needs for housing stock with new regulations, such as those from the Fire Safety Act 2021, Building Safety Act 2022, and the Social Housing (Regulation) Act 2023. 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 detailed proposals for rent increases for the upcoming financial year. The standard increase proposed was 4.8%, equivalent to the Consumer Price Index (CPI) plus 1%. This would result in an average weekly increase of £7.04 for a two-bedroom property.

Additionally, the report discussed the concept of rent convergence, a government initiative that could allow rents below a 'formula rent' to increase by an additional amount annually. The report sought views on two potential convergence levels: an additional £1 per week or an additional £2 per week, on top of the CPI + 1% increase. These increases were presented as a means to boost HRA income and financial resilience.

Service Charges: Proposed increases to tenants' service charges were also on the agenda. These included rises for:

• Caretaking: a 5.0% increase, equating to £0.62 per week.
• CCTV: a 6.8% increase, or £0.08 per week.
• Communal Lighting: a 2.0% increase, or £0.06 per week.
• Communal Mechanical and Electrical Maintenance: a 5.8% increase, or £0.09 per week.
• Grounds Maintenance: a 10.0% increase, or £0.25 per week.
• Responsive Housing Patrol: a 6.9% increase, or £0.06 per week.

The report indicated that these increases were necessary to cover rising costs and inflationary pressures.

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, visitor permits, shed and cupboard rentals, and allotment rentals, 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 despite uncertainty in future gas prices, with the understanding that holding scales flat carried a risk of the heating pool moving back into deficit if prices rose significantly.

Savings: The report noted that the garage rent increase was a continuation of a saving measure from a previous period. It also highlighted a reduction in the bad debt provision budget by £0.9 million due to improved arrears management. A planned drawdown from reserves of up to £5 million was proposed to balance the budget for 2026/27, with this amount potentially reducing if rent convergence measures were implemented.

The report also included an equalities impact assessment and information on affordability and support services available to tenants facing financial difficulties. The committee was asked to provide feedback on the proposed rent and service charge changes, as well as other fees and charges, through a consultation questionnaire.