Westminster Community Homes (WCH) is projecting a surplus of £420,000 for the 2026/27 financial year, an increase from the £370,000 forecast for the current year ending 2025/26. This positive financial outlook was detailed in the organisation's business plan for the upcoming financial year, which was presented to the Shareholder Committee.
The plan outlines strategic goals focused on modernising the business, supporting the Council's Fairer Westminster
agenda, and ensuring good governance. Key actions include delivering new affordable homes at the Harrow Road development, investing in existing stock, and supporting homeless households.
The Harrow Road development, also referred to as the MOT Yard development, is projected to deliver 15 new social rented family homes. This is part of a broader strategy to invest in existing stock and support homeless households.
During the meeting, it was noted that the P9 forecast for the year ending 2025/26 indicated a surplus of £370,000. However, subsequent work has revised this forecast closer to £450,000. The organisation has also made progress in addressing increased repair costs.
It was identified that the issue with repair costs stemmed from their own void contractors rather than external Westminster contractors. To address this, WCH has tightened up on our void standard
and is now applying intermediate market rent standards only to relevant properties. They have also increased referencing processes and are chasing references more quickly to reduce waiting times. Furthermore, larger block viewings with housing solutions are being conducted to potentially secure multiple applicants at once, followed by diligent reference chasing.
Westminster Community Homes reported that cash reserves remain positive, with £3 to £4 million available, which is being used to fund the MOT Yard development. The organisation is also budgeting for additional work to address mould and capital works identified through the Behind Every Door
stock assessment programme. The estimated budget for picking up these identified property attributes over the next year is approximately £100,000.
The business plan also detailed assumptions regarding rent increases, operating costs, and interest rates, aiming to ensure the organisation's financial stability and its contribution to the Council's housing ambitions. For financing, the plan assumes a 35% shareholder loan at 0% interest and 65% senior debt, with senior debt assumed at 5.5% for acquisitions and 6% for developments. Rent increases are projected at CPI + 1% for Assured Properties (4.8%), CPI for IMR Properties (3.8%), and RPI + 0.5% for Shared Ownership (5%). Repair costs are projected to increase by 22% for 2026/27, with CPI inflation applied to responsive repairs and 10% inflation to void works costs.
Inaccurate assumptions could affect the company's ability to cover costs and meet interest payments, potentially leading to losses or a need for additional funding. A notable example is a projected drop in interest cover around July 2032, linked to the acquisition of market rent homes at Ebury Phase 3, where net revenue income may not fully cover annual company and interest costs during the initial occupation period.
This information was presented in the 26-27 Business Plan Shareholder Committee Report
26-27 Business Plan Shareholder Committee Report.
