Agenda item

Report of Chief Officer - Housing & Property and the Chief Officer - Resources (Section 151 Officer) (report published on 9.2.26). 

Cabinet Member with Responsibility Councillor Caroline Jackson. 

The Panel received a joint report to Cabinet from the Chief Officer Housing and Property and Chief Officer Resources that sought Cabinet decisions on Council Housing rent setting proposals and HRA revenue and capital budget proposals. 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows: 

The options with regards to rent setting are set out under section 4 of the report, the maximum permitted increase being CPI+1% for current tenants, with flexibility of an additional 5% / 10% above formula rent for new tenancies. By applying this increase, it allows for a budget that can deliver on the Council’s and Governments ambitions on improving housing standards and addressing the climate change emergency, whilst adhering to the Rent Standard and wider legislative requirements. 

In relation to garage rents, it is recommended that an increase in line with dwelling rent increases is appropriate and will support maintenance requirements without adversely impacting occupancy levels. 

With regard to the revenue budget generally, Cabinet could consider other proposals that may influence spending in current and future years, as long as their financing is considered and addressed and coherent with the legislative and regulatory requirements of a Registered Provider. 

The options available in respect of the minimum level of HRA balances are to retain the level at £750K in line with the advice of the Section 151 Officer or adopt a different level. Should Members choose not to accept the advice on the level of balances, then this should be recorded formally in the minutes of the meeting, and it could have implications for the Council’s financial standing, as assessed by its external auditor.  

 The options available in respect of the Capital Programme are:

i)               To approve the programme in full, with the financing as set out;

ii)               To incorporate other increases or reductions to the programme, with appropriate sources of funding being identified.

Any risks attached to the above would depend on measures Members proposed, and their impact on the council housing service and its tenants. As such, a full options analysis could only be undertaken once any alternative proposals are known, and Officers may require more time in order to do this.

Officer Preferred Option (and comments)

Option 1: Set housing and garage rent levels as set out in this report and approve the provisions, reserves and balances position (and their use); the revenue budgets and capital?programme, as set out and refer onto full Council.

The budget headlines were presented to the Tenants Voice meeting of 29th January 2026 who were broadly in agreement with the proposals described, including the rent increase and understood the rationale for such. There was, however, a range of debate which should be noted including:

• Residents were keen to understand how we would seek to increase housing stock – replacing homes lost through Right-to-Buy

• Residents also noted that they did not want to see their rent money being offset to repair homes though tenant damage and wanted to understand the re-charge process in such instances.

• Officers committed to providing details of planned maintenance and capital programmes be presented to a future meeting of the Tenant Voice.

The budget headlines and the wider context of housing finances were also presented and discussed at the Council Housing Advisory Group (CHAG) on 29th January 2026, who were supportive and understood the financial challenges and requirements faced within the HRA. Residents were keen that within their new rent letters that they saw the difference in what they had paid before as a comparator.

The report highlights challenges faced within the current economic climate, particularly in the context of the increased regulatory and legislative requirements being placed on the social housing sector. The longer-term financial forecasts contain numerous estimates and assumptions, and the service remains attuned to the risks contained within Appendix F to the report, and in particular the impacts of further legislative and regulatory change which could affect business planning within the HRA. 

Members of the Panel askeda number of questions at the meeting regarding the Council’s 10-year Capital Programme and building cost inflation.  

Resolved: -

That the report be noted.