Wandsworth Council convened a special meeting to discuss the Housing Revenue Account (HRA), including proposed rent increases and the capital programme. The council approved a 4.8% increase in council housing rents and adopted the HRA budget framework for 2025/26 to 2028/29, alongside significant capital investment plans.

Housing Revenue Account Budget and Rent Increases

The council discussed and approved the Housing Revenue Account (HRA) budget framework for 2025/26 to 2028/29. A key decision was the approval of a 4.8% increase in council housing rents, the maximum permissible under the Rent Standard, effective from April 2026. This increase is intended to cover rising costs, fund essential repairs and improvements to the existing housing stock, and support the council's ambitious plans to increase the supply of affordable housing.

Arguments in favour of the rent increase highlighted the need for sound financial management to maintain the HRA's viability, invest in the housing stock, and fund new developments. It was noted that for many tenants receiving Housing Benefit or Universal Credit, the increase would be covered by their benefits, and that the council offers support for those facing financial hardship. The average council rent would rise to £161.49 per week, which remains significantly lower than private sector rents in the borough.

Opponents of the rent increase argued that it would place an undue burden on tenants, particularly those not receiving full benefit support, and that the money would subsidise inefficient building programmes rather than improving existing homes. Concerns were raised about the council's overall financial position, including significant borrowing plans and the impact of government funding cuts on the General Fund, which could indirectly affect the HRA.

The council also approved increases in non-residential charges by an average of 3.8% and a reduction in the fuel element of heating and hot water charges by 20%, with an average increase of 9% to the repairs and maintenance element.

Housing Capital Programme

The meeting approved additions to the Housing Revenue Account capital programme, totalling £241.907 million, bringing the overall capital programme to £758.227 million over the framework period. This investment is earmarked for repairs and improvements to existing stock, new housing developments, regeneration projects, and the purchase of new properties.

Significant investment is planned for repairs and improvements, including roof renewals, kitchen and bathroom replacements, and energy efficiency measures. The capital programme also includes substantial funding for new council homes through the Homes for Wandsworth programme, regeneration schemes like the Winstanley York Road and Alton schemes, and the acquisition of properties, including units at Battersea Power Station.

Concerns were raised by some councillors about the scale of borrowing required for the capital programme, the potential impact of interest rate fluctuations, and the need for greater scrutiny of development costs. However, the council maintained that the HRA is in a strong financial position, allowing for this ambitious investment strategy.

Other Discussions

The meeting also included tributes to the late former Councillor Martin Johnson, MBE, who served the council for 47 years. The Mayor provided announcements regarding community engagements, the London Borough of Culture events, and upcoming fundraising activities. Petitions were presented concerning damp homes on the Flowersmead Estate, fly-tipping on Old Hospital Close, and the potential closure of the Open Door Community Centre.

A significant portion of the meeting was dedicated to points of order and debate regarding the inclusion of the general fund budget on the agenda, with opposition councillors arguing for its inclusion due to anticipated government funding cuts. The Mayor ultimately ruled that the meeting would proceed as planned, focusing on the HRA.

The council also approved revisions to committee memberships.