Decision Details

That Cabinet recommend to Full Council that it approves the following:

1. Proposed rent increase of 4.8% in line with the Rent Standard September 2025 CPI of 3.8% plus 1%, plus rent convergence at the maximum level, that is due to be announced in January 2026.

2. Service charges and associated fees for 2026/27 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 report brings together all relevant information to enable Members to review, consider and comment upon the Council’s proposed rental increase, service and other charges, before making final recommendations to Full Council.

To advise Members of the wider housing and welfare changes that will impact on future service delivery.

1. Rent Setting: Following four years of compulsory rent reduction, between 2016/17 and 2019/20 and rent increases during 2023/24 being set at 1% below the permitted 7% capped increase allowed, the 30-year business plan has taken a significant hit on rental income. This combined with the increased pressures on the HRA budgets with significant investment required in its existing housing stock while still meeting its aspirations to increase its numbers of housing, it is not recommended to increase rents by less than Government guidance.

2. The budgets work on the assumption of increasing rents by the September Consumer Price Index (3.8%) + 1% as per the Rent Standard, with the addition of rent convergence assumed at £1 per week. Government have confirmed there will be no rent cap for 2026/27 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 (3.8%) + 1%. However, this will have a negative impact on the HRA budget and 30- year business plan and is not recommended.