The Housing and Homelessness Policy and Accountability Committee met to discuss the council's revenue budget and medium-term financial strategy for 2026/27, as well as the Housing Revenue Account budget for the same period. Key decisions included the approval of a 2.99% Council Tax increase and a social care precept, which will generate an additional £4.4 million annually. The committee also reviewed the Family Housing Strategy and discussed the ongoing challenges and strategies for tackling homelessness.

2026/27 Revenue Budget and Medium-Term Financial Strategy

The committee reviewed the proposals for the 2026/27 revenue budget and the council's medium-term financial strategy. A balanced budget for 2026/27 is proposed, which includes £9.5 million in efficiencies. To fund council services and maintain financial resilience, a 2.99% increase in Council Tax is proposed, along with an additional social care precept. This combined increase is expected to generate £4.4 million annually. The report highlighted that the council has maintained a modest budget surplus in the last three financial years and has been increasing its reserves, unlike many other councils.

The council faces ongoing financial challenges due to demand-led pressures in areas such as Adult Social Care, Children's Services, and Homelessness, as well as changes to funding formulas. For the first time in several years, the government has confirmed a multi-year settlement from 2026/27 to 2028/29. Hammersmith and Fulham is eligible for transitional funding relief over these three years.

The proposed savings relevant to this committee include £1.1 million from the transfer of leases to a housing company, leading to increased charges, and £0.1 million from additional income from licences. The committee was asked to comment on these proposals and any proposed changes to fees and charges.

Homelessness in Hammersmith & Fulham

The report detailed the significant pressures on the Housing Solutions service, including increasing demand for homelessness services, a lack of new social and affordable housing, and the impact of the cost of living crisis. The council's strategy to manage homelessness focuses on prevention, providing housing advice, supporting residents facing financial pressures, and working with landlords. The service also prioritises reducing rough sleeping and providing support for refugees.

A key financial challenge is the rising cost of temporary accommodation. To address this, the council is exploring the establishment of a wholly-owned housing company to manage leased temporary accommodation properties. This would allow for rental levels to align with current Local Housing Allowance (LHA) rates, improving financial sustainability. The net expenditure for the Housing General Fund in 2026/27 is projected to be £21.5 million, an increase from £16.9 million in 2025/26, largely due to inflationary pressures on temporary accommodation and a required uplift of £1.0 million.

Savings of £1.2 million are planned to help contain the increasing net cost of temporary accommodation. These savings are primarily from the transfer of Private Sector Leases (PSL) to the housing company, which will involve increased charges aligned with LHA rates. This is expected to have a neutral impact on groups with protected characteristics, as homeless households will continue to be placed based on statutory criteria.

Additional income of £150,000 is anticipated from licence renewals and increased applications due to non-compliance within the Selective Licensing Zone. This proposal is also considered to have a neutral impact, as licensing schemes aim to improve housing standards and protect tenants, particularly those more vulnerable.

The committee noted the proposed fees and charges for 2026/27, which include a standard uplift of 3.8% for most non-commercial and non-parking fees. Specific increases were noted for Private Sector Leasing water charges and Bed and Breakfast temporary accommodation. Fees for Houses in Multiple Occupation (HMO) licences also saw an increase, with discounts available for landlords who are members of accredited bodies or sign up to the Hammersmith & Fulham Landlords Charter.

Family Housing Strategy

The committee discussed the Family Housing Strategy, which aims to address the ongoing demand for family-sized housing, particularly affordable and social options. The strategy acknowledges declining birth rates and population movement impacting school rolls and local economic development. The council plans to update its housing strategy and planning policy, optimise existing homes, and build and acquire new family-sized homes.

Councillor Adronie Alford, Conservative Spokesperson for Housing, sought clarification on how the strategy aligns with the London Mayor's plans and the council's autonomy in decision-making. It was explained that opportunities exist to review housing stock and estates, including garage sites, for development. The strategy is broadly aligned with the Mayor's objectives, and a new consultation is underway to incorporate the borough's needs into future housing development plans.

The process for residents wishing to downsize was also discussed. Officers aim to arrange face-to-face meetings to outline options, and there is a focus on addressing perceptions of sheltered housing as an independent living arrangement. The council also has visibility of underoccupied properties and is working to support residents who wish to downsize.

The potential for a Council-owned Housing Company was raised, with assurances that it would operate independently and pose no risk to the Housing Revenue Account. The timescales for its business plan and associated risks were noted as important considerations.

The committee also discussed the acceleration of the process for identifying suitable properties and rehousing families. Benchmarking against other local authorities is being undertaken, and housing services are encouraged to adopt more innovative approaches, including reviewing patch sizes and collaborating with the Regeneration Team. Home swaps and mutual exchanges are also facilitated under an existing policy. The importance of gathering resident feedback to improve the downsizing process was highlighted, and the Chair suggested bringing this policy back for further review at a future meeting.

Tenant Satisfaction Measures (TSMs)

In a review of the previous meeting's minutes, the committee noted the Tenant Satisfaction Measures (TSMs) for 2024/25. The council commissioned BMG to conduct a tenant satisfaction measurement survey, with a significant proportion of tenants participating face-to-face. The report indicated that a shift in methodology and service enhancements likely contributed to improved results. An action plan had been developed to address areas for improvement identified in the 2023/24 results.

For the TSM Management 2024/25, performance was maintained or improved on 13 out of 14 indicators, with improvement plans in place for areas of limited progress, such as complaints and Decent Homes. The TSM Perception 2024/25 showed significant improvement, with 11 out of 12 scores increasing, particularly in areas of listening to residents' views, home maintenance, and fair treatment.

The main drivers for satisfaction were a generally good service, the absence of problems, and quick resolution of repairs. However, the management of outstanding repairs remained a key driver for dissatisfaction. John Hayden, Assistant Director of Repairs, explained that improvements in perception were largely due to residents feeling their homes were well-maintained and that they were treated fairly. The council had focused on the quality of repairs and ensured follow-ups. However, satisfaction with the timeliness of multiple repairs had not improved as quickly as expected, and communication between contractors required further development. A resident working group, including contractor representatives, had been established to explore service enhancements. Ensuring safety within the home was also identified as a priority.

Councillor Sally Taylor inquired about the change in the proportion of homes not meeting the Decent Homes Standard. John Hayden explained that stock condition surveys had been completed on over 5,500 properties, and data was being modelled to inform future planning. A kitchen and bathroom improvement programme is part of a five-year investment plan. The increase in homes not meeting the standard reflected the identification of areas requiring planned investment rather than poor conditions.

Councillor Adronie Alford expressed concern regarding complaints handling. John Hayden noted that this area was under review, with significant work undertaken with residents to improve the service. Some dissatisfaction stemmed from differing expectations compared to previous service operations. Clearer policies and procedures were now in place. Councillor Frances Umeh, Cabinet Member for Housing and Homelessness, added that complaints data was being used to identify insights and improvements through closer resident engagement, focusing on communication and managing expectations.

Councillor Asif Siddique asked about feedback mechanisms for residents. John Hayden confirmed that a text-based survey is sent to a select number of residents after repair jobs, and all feedback is reviewed weekly and assessed monthly. If residents prefer not to lodge a formal complaint, issues can be escalated directly to the repairs team as service requests.

Richard Shwe, Director of Housing, reported that the council ranked in the top quartile for approximately seven out of twelve perception surveys, including being the 3rd best in London for A well-maintained home and Treating residents fairly and with respect, and 2nd best for Handling antisocial behaviour. The Service Improvement Plan was highlighted as a support for the council's improvement journey, with a continued focus on resident engagement.

Regarding winter preparedness, John Hayden stated that the Mechanical and Electrical Team would implement a Winter Plan with shorter response times for urgent issues like loss of heating, with emergency repairs for vulnerable residents completed within 24 hours. Councillor Frances Umeh mentioned existing communication channels, including newsletters, tenant and resident associations, and forums.

The committee resolved to note the report on Tenant Satisfaction Measures.

Date of Future Meetings

The next meeting of the Housing and Homelessness Policy and Accountability Committee is scheduled for 20th April 2026. The Chair requested an agenda item to explore the lived experiences of residents in recently developed estates.