Wandsworth Council is set to increase council housing rents by a maximum of 2.7% starting in April 2025, following a recommendation from the Cabinet Member for Environment. The increase is part of the Housing Revenue Account (HRA) budget framework for 2024/25 to 2027/28, which was discussed at a Housing Committee meeting. Consultation was undertaken through the Borough Residents' Forum (BRF) meeting on 16 January 2025.
The decision comes as the council faces increasing financial pressures within the HRA, including void properties and rising repair costs. The HRA business plan and framework are designed to finance investment in existing housing stock and the continued delivery of new housing. The report recommends new capital spend of $84 million, which, combined with the existing capital programme, results in a total capital investment of $627 million over the framework period.
Non-residential charges, such as garages and storesheds, will also see an average increase of 2.2%.
The increase is in line with the rent standard which allows for a maximum rent increase of CPI plus 1%. The report pack for the meeting indicated that the September 2024 CPI was 1.7%.
The report pack for the meeting also indicated that the Cabinet Member for Environment recommends that non-residential charges are increased by an average of 2.2% from the same date.
The Housing Committee reviewed the rent-setting paper, and the Borough Residence Forum indicated they were happy with the contents. However, they drew attention to specific paragraphs in their forum paper regarding repairs and maintenance charges, specifically in relation to Mitchell House and Shuttleworth Road, where tenants are picking up the charges rather than the HRA. Tom Crawley, Assistant Director of Residence and Estate Services, acknowledged the error and stated that the tenants in those blocks should not be charged for the repair and maintenance element of the heating and hot water charges and that this would be amended.
The report pack indicates that the Executive Director of Finance and the Interim Executive Director of Housing consider that the HRA business plan and framework would demonstrate that the Council remains in a strong position to finance future expenditure plans.
The HRA budget and rent setting report was presented at the Housing Overview and Scrutiny Committee meeting on 22 January 2025.
