Hammersmith and Fulham Council's Cabinet has approved a rent increase for Housing Revenue Account (HRA) properties of 4.8% for the 2026/27 financial year. This increase, which aligns with the national social rent policy of CPI + 1%, will result in an average weekly increase of £6.69 for tenants.
The decision, made during a Cabinet meeting on February 9, 2026, also includes adjustments to service charges, heating and hot water charges, garage rents, and car space rentals. While most service charges will see an average weekly increase of £1.52, charges for heating and hot water are set to decrease.
The proposed adjustment to tenant service charges is an average weekly increase of £1.52 in 2026/27. This increase is to reflect the costs of providing communal services
. Specific services that will see this increase are listed as: Caretaking (£0.82 average increase), Grounds Maintenance (£0.16 average increase), Concierge (£0.86 average increase), Door Entry (£0.02 average increase), Lift Maintenance (£0.41 average increase), TV Aerials (£0.04 average increase), and Communal Lighting (£0.30 average increase).
The HRA budget for 2026/27 aims to preserve housing services, build new homes, and invest in existing stock. A key element of the plan is a significant investment of £49 million over four years for retrofit projects to improve energy efficiency and reduce carbon emissions.
Councillor Frances Umeh, Cabinet Member for Housing and Homelessness, stated that the rent increases are necessary to protect the long-term financial resilience of the HRA and enable the delivery of strategic housing objectives. She noted that for approximately 63% of tenants, the additional costs will be covered wholly or partially by Housing Benefit or Universal Credit.
The council's strategy for ensuring the long-term financial resilience of the HRA beyond the current budget cycle is outlined in the HRA 10-year Business Plan (2026/27 - 2035/36)
. Key elements of this strategy include preserving housing services, building new homes, investing in improvements to existing homes, rebalancing capital and revenue maintenance spend, and delivering a modern and efficient housing service with high performance standards. The plan also aims to maintain minimum general balances of £5m throughout the duration of the plan and increase them in future years, and deliver a cumulative savings program of £3.9m by 2026/27. Furthermore, the plan assumes rent increases based on CPI + 1% + £2 from 2026/27 onwards, and includes projections for improved repairs to rent income ratios and controlled external borrowing.
Despite the rent increase, the average rent for council homes in Hammersmith and Fulham remains lower than in neighbouring London boroughs and is less than a third of private housing market rents. For example, a one-bedroom council home is proposed to cost £136.50 per week from April 2026, compared to an estimated private market rent of at least £476.
The HRA 10-year Business Plan includes plans for building 198 new homes and a significant investment in decarbonisation projects. The council also aims to maintain a general reserve of £5.9 million to cover unforeseen events.
