This meeting saw the Cabinet asked to approve budgets for 2025-26 for the Housing Revenue Account (HRA), increase Council rents and approve a new Housing Investment Strategy. The Cabinet were also asked to agree the approach to commissioning integrated Sexual Health services and were presented with a report about a proposed consultation on whether to renew the additional HMO licencing scheme.

Housing Revenue Account Budget and Rent Review

The most significant topic for discussion was the HRA budget, which sets out how the Council plans to manage its income and expenditure for council housing.

The report identifies that there has been a significant real terms reduction in the amount of rental income the HRA receives as a result of decisions made by central government to reduce or cap rent increases, which has created a severe financial challenge. It has been calculated that the HRA has lost £168m of rental income since 2016. For example:

As a result of previous government policy, it has been calculated that the HRA has lost £168m of rental income since 2016 and rental income is £32m lower in 2024/25 compared with what it would have received if the policy had been kept consistent at CPI + 1%. ¹

At the same time, costs have been rising for energy, repairs and other services. The report sets out a balanced budget for the HRA which involves £2.08m of savings, some of which relate to increasing existing savings targets.

To fund this balanced budget, the report requests that Council increase social rents by 2.7% which is the maximum permitted under the current rent standard rules for 2025/26, increase resident garage rents from £16/week to £18/week, and keep rents for the Temporary Accommodation Purchase Programme (TAPP) at 2023/24 levels. The benefit cap has not increased from 2023/24. The rents for TAPP2 and TAPP3 were set at £233 per week for 2023/24. The report does not request increases to these rents for 2025/26.

The report also proposes increasing tenant service charges in line with inflation for items such as caretaking, grounds maintenance and CCTV. There is a proposed increase in grounds maintenance of 12% due to extensive repair costs.

Housing Investment Strategy

The second most significant topic scheduled for discussion was the proposed adoption of a new Housing Investment Strategy. This strategy sets out how the Council will invest in and manage its existing housing stock over the period 2025-2030.

This incorporates a number of current programmes such as the Community Investment Programme (CIP), the Family Friendly Homes Programme, the Council's wholly-owned housing company Camden Living and other acquisition programmes.

The Council is committed to increasing the supply of good quality, energy efficient, family friendly homes through its Community Investment Programme, through its Registered Provider [Camden Living] and through its acquisition programmes. ²

The report acknowledges that the Council is facing a significant shortfall in finances which affects its ability to meet the necessary standards for maintaining existing properties. It’s been identified that the Council ideally needs to invest an extra £350m in maintenance over the next 5 years. To help fund this gap the report recommends the Council adopt a proactive approach to managing its stock:

The responsible position for the Council is to actively manage its portfolio to ensure it is a good match to resident needs.

Specifically, the report recommends disposing of poorly performing properties through the “Quality Homes Programme”. The report recommends the release of approximately 290 homes over 5 years.

The Quality Homes programme … is Camden’s mechanism to manage necessary changes in its stock profile, to enable it to ensure it can provide quality homes that meet residents’ needs within its financial means.

The analysis within the report suggests that the properties that would be released would primarily be Camden's older properties. The report states that “in limited circumstances” it may be necessary to rehouse existing tenants when a block of flats is sold.

Review of the Council's additional Houses in Multiple Occupation Licencing scheme and proposal to consult on renewal of scheme

The third most significant topic for discussion was the proposed consultation on a new designation of the borough wide additional HMO licencing scheme.

The report includes a review of the current scheme which demonstrates it has been largely effective in achieving its objective of improving standards in these properties. For example:

Of licences issued to date, 94% have required works to bring the property up to standard, with the most common improvements relating to fire safety.

The report recommends consulting on renewing the scheme for a further 5 years when the current scheme ends in December 2025.

Integrated Sexual Health Commissioning Strategy

The final topic for discussion was the Integrated Sexual Health Commissioning Strategy. This report sets out how the Council plans to secure the provision of sexual health services across Camden, Barnet, Haringey and Islington.

The report acknowledges that there have been changes in the types and levels of services needed since the pandemic. It proposes a new 3-year contract for the service, which would be awarded to the current provider Central and North West London NHS Foundation Trust.

The new Provider Selection Regime (PSR) rules mean the Council is required to justify why it has decided upon this course of action. The report states:

All four commissioning boroughs agree that CNWL are providing a service that performs well, meets quality standards and demonstrates value for money.

The report sets out the budget for the service which is £2,148,300 per annum for Camden.