Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 20, 2025

Purpose: Cabinet is recommended to review and agree the proposals for the HRA Budget for 2025/26    

Content: Cabinet: (1)          agreed a HRA dwelling rent increase of 2.7% (September CPI + 1%) in line with The Regulator Social Housing’s Rent Standard and agree that on average rents will increase by £3.44 from £127.29 to £130.73 per week, with effect from 1st April 2025; (2)          agreed the level of tenant service charges as set out in paragraph 3.12 of the report so as to recover all costs from tenants receiving the service; (3)          agreed an increase in garage rents of 5% (£0.87) for residents and 30% (£5.72) for non-residents, from 1st April 2025; (4)          noted the increase in shared ownership rents in line with the provisions of the relevant lease; (5)          reviewed and noted the proposals for the HRA Budget for 2025/26, as set out in section 3.9 of the report; (6)          agreed to increase the rent and service charges for sheltered accommodation by 2.7%, in line with the rent increase for general needs council housing; (7)          noted that temporary accommodation rent charges will continue to be linked to Local Housing Allowance (LHA) levels; and (8)          agreed to increase charges for travellers’ sites by 2.7%, in line with the rent increase for general needs council housing.   Options & Alternatives Considered The 2023/24 Rent Cap resulted in a £2.5m reduction in income collected within the HRA. The reduction is compounded for future years and, therefore, affected the resources available for capital investment. The effect of a below inflation increase would further reduce the resources available and impact how effectively the Housing service and could manage and invest in the borough’s housing stock. Alternative rent increases were considered in setting the budget, but any reduction to the rent policy set by The Regulator of Social Housing would result in a requirement for additional savings to be made, which would impact on the services provided to tenants. A reduction to the Rent Standard would also have a long-term impact on future rent levels and therefore income.