Croydon Council has approved a £572 million investment plan for its Housing Revenue Account (HRA) over the next six years, aiming to improve the condition, safety, and performance of its housing stock. The plan, considered at a Council meeting on Wednesday, 25 February 2026, includes significant capital expenditure on major repairs, estate improvements, and building safety works.
The HRA Business Plan, projected over 30 years, outlines planned capital investments totalling £572 million between 2025-26 and 2030-31. This investment is crucial for addressing the backlog of works identified through stock condition surveys and ensuring compliance with new regulatory requirements, such as Awaab's Law. The HRA 30-year Business Plan is underpinned by robust stock condition data, with surveys completed on the vast majority of the Council's homes, enabling an accurate assessment of investment needs and the development of a realistic capital programme focused on improving the condition, safety, and performance of the housing stock.
A substantial portion of this investment is earmarked for regeneration projects, including the redevelopment of the Regina Road estate. The Regina Road redevelopment is planned to include up to 340 new homes, new green spaces, a nursery, improved lighting and security, a multi-games area, and enhanced walking and cycling routes. Construction of the new homes was expected to commence in March 2026, subject to the completion of the second stage of the Greater London Authority review.
Key areas of focus for the investment include tackling damp and mould, improving void turnaround times, and resolving disrepair cases more quickly. Tenant feedback has been integral in shaping these priorities, with resources being targeted accordingly. The HRA Capital Programme projected an investment of £572 million between 2025-26 and 2030-31, planned to support these key areas.
Financially, the capital programme will be funded through a mix of sources, including Right to Buy receipts, revenue contributions, grants, and reserves. However, borrowing will also be necessary, with an estimated £310.8 million projected over the six-year period. The HRA's borrowing is projected to increase significantly, reaching £860 million by 2045/46, though this is stated to be within the projected debt capacity.
The plan also addresses rent increases, with social rents set to rise by 4.8% from April 2026, aligned with government policy. This represents an average weekly rent increase from £137.90 in 2025/26 to £144.53 in 2026/27 for a 2-bedroom property. A continuation of the HRA Hardship Fund is proposed to support tenants facing financial difficulties.
Despite the significant investment, the plan acknowledges ongoing financial pressures and the need for careful risk management. Sensitivity analyses have been conducted to assess the impact of potential changes in interest rates, inflation, and rent policies.
