Decision Details

Implemented

Housing Revenue Account (HRA) Rent and Service Charge setting 2025/26

ES/2217

No

Committee

Cabinet

Tue 7 Jan 2025

No

Report of the Cabinet Member with responsibility for Housing.

See attached report 

Housing Operations & Landlord Services

Not Applicable

Lisa Farrington

lisa.farrington@eastsuffolk.gov.uk 

See attached report

Yes

That Cabinet recommended to Full Council that it approved the following:

1. Proposed rent increase of 2.7% in line with the Rent Standard September 2024 CPI of 1.7% + 1%.

2. Service charges and associated fees for 2025/26 at Appendix A

3. Rent and Service Charges to be charged over a 50-week period unless being used for Temporary Accommodation when a 52-week period will be applied.

The Government’s Rent Policy recognises that registered housing providers should have some flexibility over the rent set for individual properties, to take account of local factors.

In making the proposed amendments, the Council can ensure that income from rent and other charges is set at an optimum level; meaning the Council is able to balance the HRA budget whilst mitigating, wherever possible, financial impacts on the Council's tenants. This paper provides an explanation as to how this has been achieved within Government policies.

This report details the required changes to the Councils rent and service charge setting process in accordance with National Government policy and, provides analysis in terms of the impact this would have on the Housing Revenue Account (HRA). It further details how rents and service charges are determined, and the proposed increases for 2025/26 are recommended to Cabinet for approval.

 

The report also notes changes in welfare and benefits and the impact of external and internal requirements which have been considered when completing rents and service charges for 2025/26.

1. Rent Setting: Following four years of compulsory rent reduction, setting rents from 2020/21 below the maximum permitted under the Rent Standard is not recommended. However, the 2023/24 rents were set 1% below the Government cap of 7% to help alleviate financial pressures on our tenants. From 2024/25 it is not recommended to repeat this to ensure financial sustainability within the HRA.


2.The budgets work on the assumption of increasing rents by the September Consumer Price Index (1.7%) + 1% as per the Rent Standard. Government have confirmed there will be no rent cap for 2025/26 and Local Authorities are expected to follow the Rent Standard.


3. Other options include setting the rents at less than the September Consumer Price Index (1.7%) + 1%. However, this will have a significant negative impact on the HRA budget and 30-year business plan and again is not recommended.

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