Wolverhampton to decide on £570m housing plan
More than £500m could be spent improving council housing in Wolverhampton over the next five years – but rents could be set to rise by 4.8% at more than 20,000 council-owned homes as the authority bids to keep its refurbishment programme on track.
Should City of Wolverhampton Council’s HRA capital programme be signed off by full council this month, around £107m will also be made available to build around 500 new council houses in the city over the next five years.
In a fresh report discussed by the city council’s cabinet this week, the authority says rent rises across its 21,200 properties are required due to “significant increases” to revenue costs for its housing stock, which it says are a result of inflationary pressures, higher interest rates and the higher costs of maintaining older buildings.
More than 65% of Wolverhampton’s stock is over 60 years old, with around 28% built before 1944 and in need of significant investment or redevelopment, according to the report.
Major regeneration schemes are under way in the city as part of plans to address the issue, including the New Park Village development, set to provide 188 homes in pace of around 200 1960’s era maisonettes.
Around £90m has been allocated to “estate remodelling” works at New Park Village, and at other non-traditional builds across the city, while £26m is also earmarked for phase two of the city’s Heath Town regeneration scheme over the next five years.
Meanwhile, a near-5% rent rise for tenants is proposed as part of the proposals, but improvement programmes could still be squeezed if costs continue to rise, the report says.
“Based on a 4.8% rent increase, the HRA will have sufficient resources for work programmes currently in progress in 2025-2026 and 2026-2027 and meet expected standards,” it said.
“However, if revenue costs continue to increase there will be less capacity in the HRA to also increase capital expenditure and meet all the needs.”
More than £100million would be made available for improvements to high-rise buildings in the city, which accounts for over 4,000 of the city’s council housing, while £106m will be spend on raising internal standards of properties across the portfolio.
Councillor Steve Evans, Deputy Leader and Cabinet Member for City Housing, said growing demand had seen the council’s housing waiting list rise over the past year.
“Our ambitious housing capital programme and success in securing additional grant funding, shows our determination to provide local residents with new and better homes for affordable rent, while continuing to invest in existing housing stock and improving and redeveloping housing estates across the city,” he said.
“We have major plans on site or planned across Wolverhampton, delivering better connected communities where people can enjoy brighter futures.
“Of course, these plans are set against the backdrop of increasing pressures on the HRA year on year and without national reform of the HRA system delivering medium and longer-term objectives is going to be very challenging, which is why England’s 20 largest council landlords, including City of Wolverhampton Council, have collectively developed proposals on national financing and policy, to stabilise HRAs and enable them to operate efficiently and effectively.”
Cabinet considered the capital programme investment as part of the Housing Revenue Account (HRA) Business Plan, before the plan is potentially signed off by a meeting of full council on January 28.
