The Holborn District Management Committee met to discuss the Housing Revenue Account (HRA) budget for 2026/27 and proposed rent and service charge increases. The committee was also scheduled to review the registration of Tenant and Resident Associations.

Registration of Tenant and Resident Associations

The committee was set to review the registration of Tenant and Resident Associations (TRAs). Appendix A of the report pack listed TRAs that had successfully completed the registration process, along with their nominated representatives. Appendix B detailed TRAs whose registrations had lapsed, with guidance on the steps required for re-registration, including holding an Annual General Meeting (AGM) with an independent observer.

January DMC HRA Budget 2026/27 and Rent Setting Report

A significant portion of the meeting was dedicated to discussing the draft Housing Revenue Account (HRA) budget for 2026/27 and proposed rent and service charge adjustments. The report from the Director of Finance outlined the financial position of the HRA and presented draft recommendations for rent and service charges to be made to the Cabinet.

The report highlighted the financial challenges faced by HRAs, including the impact of government rent policies and the rising costs associated with investing in housing stock and meeting new regulations such as the Fire Safety Act 2021, Building Safety Act 2022, and Awaabs' Law. It was noted that the HRA had lost an estimated £201 million in rental income since 2016 due to policy changes.

Key proposals and discussions included:

• Rent Increases: The report proposed an increase in social housing rents by 4.8% (CPI + 1%) from April 2026. It also sought views on potential additional increases for rent convergence, which would allow rents below the 'formula rent' to rise further. Two options for convergence were presented: an additional £1 per week or an additional £2 per week. The report detailed the potential impact of these increases on income and the HRA reserve.
• Service Charges: Proposed increases to tenants' service charges were outlined to cover the costs of services such as caretaking, CCTV, communal lighting, mechanical and electrical maintenance, grounds maintenance, and responsive housing patrols. The report detailed the proposed weekly increases for each service.
• Other Fees and Charges: An increase of £2 per week for garage rents was proposed, bringing the cost to £20 per week for tenants. Commercial garage rents were also set to increase by 11%. Other fees and charges, including estate parking, visitor permits, shed and cupboard rental, and allotment rental, were proposed to increase by 3%.
• Heating Pool: The report recommended freezing heating scales at 2025/26 levels for the 2026/27 financial year. This decision was made despite the uncertainty of future gas prices, which could potentially lead to a deficit in the heating pool.
• Savings: The report noted that the garage rent increase was a continuation of a previous savings measure. It also highlighted a reduction in the bad debt provision budget by £0.9 million due to improved arrears positions. A planned drawdown from reserves of up to £5 million was recommended to balance the budget, with the potential to reduce this amount if rent convergence was implemented.
• Affordability and Support: The report acknowledged that while many tenants could afford the proposed increases, some might face affordability issues. It encouraged members and tenants to contact the council if they experienced financial hardship, noting the availability of Welfare Rights and Income teams for support.

The report pack also included detailed appendices covering the draft HRA budget, heating pool financial summary, descriptions of tenant services, a list of other fees and charges, and the consultation questions for rent and service charge setting.

The meeting was scheduled to conclude with a feedback session where the DMCs could report the outcomes of their discussions. The next meeting was scheduled for Tuesday, 10 March 2026.