Agenda item - HRA Business Plan Update Budget 2026/27 and Capital Programme 2026/27 - 2030/31

Report attached.

Appendix 5 to this report is exempt by virtue of paragraph 3 of the Access to Information Procedure Rules set out in the Constitution pursuant to Schedule 12A Local Government Act 1972, as amended in that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information). The public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Report Title: HRA Business Plan Update Budget 2026/27 and Capital Programme 2026/27 - 2030/31

Presented by: Councillor Paul McGeary, Lead Member for Housing and Property

Cabinet:

1 Approved the Housing Revenue Account Budget as detailed in paragraph 3.5.

2 Agreed that the rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be increased by 4.8% from the week commencing 6th April 2026.

3 Agreed that the rents chargeable for tenants in supported housing Council properties, such as sheltered housing and hostels, owned by the London Borough of Havering, are increased by 4.8% from the week commencing 6th April 2026.

4 Agreed that the rents chargeable for existing occupants of temporary accommodation are increased by 4.8% from the week commencing the 6th April 2026.

5 Noted the full annual rental charge will be billed over 48 weeks of the financial year and to agree the four weeks when rents will not be collected during 2026/27 are: the week commencing of 24th August 2026; 14th December 2026; 21st December 2026 and 29h March 2027.

6 Agreed that service charges and heating and hot water charges for 2026/27 are as set out in Section 2 of this report.

7 Agreed that charges for garages should be increased by 4.8% in 2026/27 as detailed in Section 2 of this report.

8 Agreed that the service charge for the provision of intensive housing management support in sheltered housing for 2026/27 shall be as detailed in Section 2 of this report.

9 Agreed the Supported Housing Charge for HRA Hostels as detailed in Section 2 of this report.

10 Agreed that the rent charge to shared ownership leaseholders is increased in line with current lease conditions as detailed in Section 2 of this report relating to income.

11 Agreed that the Care-line and Telecare support charge should be increased by 4.8% for 2026/27 as detailed in Section 2 of this report relating to income.

12 Approved the HRA Major Works Capital Programme, as detailed in Appendix 1a of this report and refer it to full Council for final ratification.

13 Approved the HRA Capital expenditure and financing for the 12 Estates Joint Venture and other acquisition and regeneration opportunities as detailed in Section 4.3 – 4.16 and Appendix 1b of this report and refer it to Full Council for final ratification.

Report Title: HRA Business Plan Update Budget 2026/27 and Capital Programme 2026/27 - 2030/31

Presented by: Councillor Paul McGeary, Lead Member for Housing and Property

Summary:

This report sets a budget for the Council’s Housing Revenue Account (HRA) and HRA Major Works and Capital Programme. Cabinet approved the Housing Asset Management Plan 2021-2051 in October 2021 and the budgets and projections of expenditure required to maintain the stock to a good standard have been used in the preparation of the capital programme in this report. A summary is provided of the HRA Business Plan 2025/26-2054/55.

The HRA is a ring-fenced account that is used to manage and maintain the Council’s own housing stock. The Council is legally required to set a balanced budget. The proposed budget will enable the Council to manage and maintain the housing stock to a good standard and provide funding for an appropriate acquisition, new build and estate regeneration programme. It further sets rents, service charges and other charges for Council tenants and leaseholders for the year 2026/27.

As part of the new regulatory framework for local government housing services, councils are now subject to the Regulator of Social Housing’s (RSH) Rent Standard. This has introduced the CPI + 1% increase arrangement, based on the published rate for September 2025 making an increase for 2026/27 of 4.8%. This is the standard rent increase that the Government expects all councils with social housing to apply.

In order to change any HRA rent liability, the local authority must notify tenants and give 28 days’ notice of any change after the authority has made a properly constituted decision of that change. This means that, following a Cabinet decision on rent levels to be charged in any year, the local authority must write to all tenants to advise them of the new rent liability for the following 12 months.

Should the Cabinet approve the recommendations, a notification will be sent to tenants the first week of March 2026, to make the new charge effective from the first week of April 2026.