Purpose

To report the Housing Revenue Account Business
Plan, Revenue Budget, Capital Works Programme and increase to rent
and service charges.

Content

That Council be recommended to:
1.     
Adopt the Business Plan set out in Appendix 1 to the report as the
approved Housing Revenue Account (HRA) Business Plan including:

a.   
The revenue budget for 2026-2027 at Appendix 1 to the report.

b.   
The Capital Programme for 2026-2027 to 2030-2031 at Appendix 2 to
the report for which detailed investment plans are set out in
section 6 of the report.

 
2.     
Approve the implementation of an increase
of 4.8% to social housing rents in accordance with the Rent
Standard and the Welfare Reform and Work Act 2016 and to give 28
days’ notice to all secure and introductory tenants of the
rent increase from 1 April 2026.
 
3.     
Approve the rates for garage rents and
service charges set out in Appendix 3 to the report and formally
notifies tenants.

 
4.     
Approve an increase to Shared Ownership
rents to a maximum of 4.8%.

 
5.     
Approve a management allowance to
Wolverhampton Homes for 2026-2027 of £53,000,000.

 
6.     
Approve management allowances to tenant
managed Managing Agents for 2026-2027 to a maximum of the following
sums:

·       
Bushbury Hill Estate Management
Board                        
      £2,200,000

·       
Dovecotes Tenant Management Organisation
(TMO)     
    
£1,350,000

·       
New Park Village (TMO)                                                 
           
£ 380,000

 
7.     
Delegate authority to the Deputy Leader: City Housing in
consultation with the Executive Director of Economy to approve any
additional properties required for subsequent phases of the House
Project.
 
That Cabinet notes:
1.     
From 1 April 2020 the Regulator of Social Housing has regulated
social rents charged by Local Authorities as set out in the Rent
Standard 2020. Local authorities are able to apply a rent increase
below the maximum set out in the standard, but the decision would
be taken in the context of the affordability in terms of a balanced
HRA business plan that ensures service delivery and investment can
be maintained over the lifetime of the business plan.
 
2.     
That, in the opinion of the Section 151 Officer the current levels
of reserves and provisions are appropriate and adequate for the
forthcoming financial year.
 
3.     
The HRA revenue budget includes provision of £300,000 for
those tenants who may experience financial hardship due to the rent
increase and to support the single person household downsizing
initiative. This is in addition to support available via Housing
Managing Agents’ Hardship Funds, City of Wolverhampton
Council (CWC) Household Support Fund and Council Tax Hardship
Support Fund.
 
4.     
That, approximately 80% of tenants have full or partial housing
costs covered by Housing Benefit or Universal Credit and therefore
would receive government support to pay all or part of the rent
increase.
 
5.     
That, due to HRA budget pressures a comprehensive mid-term review
of the HRA Business Plan, medium term capital and revenue budgets
would be undertaken and reported on during 2026-2027.
 
6.     
The adoption of formula rents for properties re-let in line with
the Rent Standard.
 
7.     
The intention to recommend the implementation of rent convergence
in 2027.
 
8.     
That the Revised Affordable rent policy for New Build Wolverhampton
Council housing is no longer valid and would not be used going
forward.