Decision details

Housing Revenue Account Business Plan 2021-2022 Including Rents and Service Charges

Decision Maker: Cabinet

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: No


To approve the Housing Revenue Account Business Plan 2021-2022 including rents and service charges.


That Council be recommended to:

1.    Adopt the Business Plan set out at Appendix 1 to the report as the approved Housing Revenue Account (HRA) Business Plan including:


a.    The revenue budget for 2021-2022 at Appendix 1 to the report.

b.    The Capital Programme for 2021-2022 to 2025-2026 at Appendix 2 to the report that includes the following among the proposed investment plans;

·        £134.0 million for new build development

·        £41.3 million provision for Estate Remodelling

·        £3.6 million for a new programme for low and mid-rise infrastructure replacement

·        £2.0 million budget provision for conversion of commercial property to residential to provide additional homes

·        £44.5 million to complete the refurbishment of the Heath Town estate

·        £86.5 million for programmes to high rise estates to include fire safety improvements, infrastructure replacement, retrofitting of sprinklers and external works.


2.    Approve the implementation of an increase of 1.5% to social housing rents in accordance with 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 2021.


3.    Approve the rates for garage rents and service charges set out in Appendix 3 to the report and formally notifies tenants.


4.    Approve Management Allowances for Managing Agents as follows;

·        Wolverhampton Homes   - £39,425,000

·        Bushbury Hill Estate Management Board - £1,720,000

·        New Park Village Tenants Management Organisation - £383,000

·        Springfield Horseshoe Tenants Management Organisation - £360,000

·        Dovecotes Tenants Management Organisation - £1,113,000


That Cabinetnotes:

1.    The consultation responses as outlined at Appendix 3 to the report. The issues raised during the consultation have been communicated to the managing agents and would also be provided to tenants as areas for possible tenant scrutiny during 2021-2022.


2.    From 1 April 2020 the Regulator of Social Housing has regulated social rents charged by Local Authorities. The Rent increase at 1.5% is chargeable in line with Government policy set out in the Rent Standard 2020.


3.    The issues discussed in the 2018 Social Housing Green Paper which sets out five principles for a new fairer deal for social housing residents focusing on the provision of safe and decent homes, resolving complaints, empowering tenants, tackling stigma and building new homes.


4.    The National Building Safety Programme of the Ministry of Housing, Communities and Local Government and the Grenfell Inquiry pending its full outcomes, would impact upon future building safety planning. The Hackett Review 2018 makes recommendations for residential building safety and improvements to be considered as part of all future HRA asset management and improvement planning and the Building Safety Bill introduces regulation seeking greater assurance on the safety of multi-occupied buildings.


5.    Asset planning in 2020-2021 would look at the future management and asset planning for non-traditional homes, including high-rise homes.



Report author: Jenny Lewington

Publication date: 21/01/2021

Date of decision: 20/01/2021

Decided at meeting: 20/01/2021 - Cabinet

Accompanying Documents: