Decision details

Housing Revenue Account Business Plan 2025 - 2026 including Rent and Service Charges

Decision Maker: Cabinet

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To report the Housing Revenue Account Business Plan, Revenue Budget, Capital Works Programme and increase to Rent and Services Charges.

Decision:

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

a. The revenue budget for 2025-2026 at Appendix 1 to the report.

b. The Capital Programme for 2025-2026 to 2029-2030 at Appendix 2 to the report that includes the following among the proposed investment plans:

• £98 million for new homes.

• £67 million provision for estate remodelling.

• £82 million for programmes to high rise estates to include building safety improvements, infrastructure replacement, and external works to include energy efficiency.

• £110 million for Internal Decency works including refurbishment of void properties.

2.    That the implementation of an increase of 2.7% to social housing rents in accordance with the Rent Standard and the Welfare Reform and Work Act 2016 be approved and 28 days’ notice be given to all secure and introductory tenants of the rent increase from 1 April 2025.

3.    That the rates for garage rents and service charges set out in Appendix 3 to the report be approved and tenants be notified formally.

4.    That an increase to Shared Ownership rents of 2.7% be approved.

5.    That an increase of £3.0 million to the allowance payable to Wolverhampton Homes for 2024-2025 to be funded by a virement from the budget for Capital Financing and Debt repayment be approved. The virement would increase the Repairs and Maintenance budget by £2.5 million and the Supervision and Management budget by £0.5 million.

6.    That a £3.0 increase to the HRA reserve in 2024-2025 funded by a budget virement of £3.0 million from the budget for Capital Financing and Debt Repayment be approved.

7.    That an allowance to New Park Village for Quarter 4 2024-2025 of £85,000 be approved.

8.    That allowances to Managing Agents for 2025-2026 be approved as follows:

 

• Wolverhampton Homes                                                     £51,700,000

• Bushbury Hill Estate Management Board (EMB)          £2,105,000

• Dovecotes Tenant Management Organisation (TMO) £1,305,000

• New Park Village                                                                £370,000

 

9.    That authority be delegated to the Deputy Leader: City Housing in consultation with the Executive Director of City Economy to approve the equity sale of Shared Ownership properties.

Report author: Andrew Bryant

Publication date: 30/01/2025

Date of decision: 29/01/2025

Decided at meeting: 29/01/2025 - Council

Accompanying Documents: