HRA Business Plan Rent Setting
North Ayrshire Council · 11 February 2026
Back to North Ayrshire Council — 11 February 2026 and its agenda
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NORTH AYRSHIRE COUNCIL 11 February 2026 North Ayrshire Council Title: Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget and Rent Levels for 2026/27 Purpose: To advise Council of the proposed HRA capital investment programme and revenue budget for 2026/27 and the consequential rent levels. Recommendation: That the Council: (i) approves the updated 10-year HRA capital investment programme, as detailed in Appendix 1; (ii) approves the HRA revenue budget for 2026/27, as detailed in Appendix 2; (iii) approves a rent increase of 3.84% in 2026/27 for Council houses, garages/lock ups; (iv) approves a 5% increase to service charges; and (v) notes the indicative Council house rent increases of 3.84% for the remaining 28 years of the HRA Business Plan. 1. Executive Summary 1.1 Section 203 of the Housing (Scotland) Act 1987 includes a requirement for local authorities to maintain a Housing Revenue Account (HRA) to record all income and expenditure related to their direct provision of housing. Councils must estimate, annually, the amounts to be debited or credited to the account, through setting a budget, which is returned to the Scottish Government and published annually. 1.2 In successive annual updates on the HRA Business Plan since February 2023, Council officers have highlighted that the HRA is facing affordability challenges due to high inflation and increased borrowing rates. To mitigate the risk to the HRA Business Plan and keep rent increases below inflation, savings continue to be identified, and a transformation programme is in place. 1.3 At the Council meeting on 12 February 2025, a 3.84% rent increase was approved for 2025/26, which was in line with the previous year’s forecast. Council also noted that the indicative rent increase for 2026/27 and the remaining 29 years remained at 3.84%. 1.4 A comprehensive review of the HRA Business Plan has been carried out over the last six months, which has assessed the factors expected to impact on the HRA budget in
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2026/27 and beyond. 1.5 Additional funding has been allocated to reflect changes in the cost and volume of responsive and void repairs; increased timber and dampness work; increased storm damage costs to reflect weather patterns in recent years; and tenant safety works in relation to statutory testing and fire safety. Provision has also been made for enhanced environmental maintenance and investment in non-adopted roads, paths and street lighting. 1.6 Notable savings include general efficiencies across all areas of the housing budget and increased rental income following completion of major works programmes, bringing properties back into the lettable stock. 1.7 The Housing Services Transformation Programme, launched in 2023, is designed to drive change and innovation across the service. With strong governance, dedicated funding and robust support, the programme aims to deliver long‑term savings and wider benefits. To date, the programme has identified recurring revenue efficiencies totalling £0.25m for inclusion within the Business Plan, with further work underway to explore additional opportunities for improvement. 1.8 The 10‑year capital programme has been updated to reflect the latest planned expenditure for the period 2026/27 to 2035/36. The total investment of £446.07m comprises £260.60m for improvements to existing stock, £144.23m to deliver the Council house-building programme, and £41.24m for other capital works, including the Estate‑based Regeneration Programme and the refurbishment of sheltered housing units. 1.9 These changes to the Business Plan collectively enable rents for 2026/27 to be maintained at the 3.84% increase indicated in the report to Council in February 2025, whilst maintaining service delivery and continuing to build new social housing to meet current and future demand. 1.10 In summary, the review of the HRA Business Plan has resulted in proposed capital and revenue budgets which will deliver: • A £68.25m revenue budget for 2026/27 to manage and maintain our houses and estates • £1,148.85m for improvement works to our existing properties over the life of the HRA Business Plan, including £186.14m investment to tackle climate change and contribute towards net zero • £136.90m investment to increase our affordable housing stock, including construction of a further 691 new homes, refurbishment of three units and the purchase of 60 properties from the open market, all by 2031 • £35.77m further investment in our sheltered housing unit refurbishment programme, which will complete the delivery of modern accessible housing for older people across 9 units (197 homes) by 2030 • £5.47m to complete the delivery of our Estate Based Regeneration Programme.
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1.11 To maintain current service provision, the proposed increase to housing rents is 3.84% (average of £3.50 per week) for 2026/27. The results of the tenants’ consultation survey are detailed in paragraphs 2.35 to 2.40 in this report. 1.12 Earmarked and non-earmarked reserves have been reviewed as part of the 2026/27 budget and business plan process. A summary of movements since 31 March 2025 and the anticipated level of earmarked and unearmarked reserves at 31 March 2026 is provided at paragraph 2.65. The review of the earmarked funds has resulted in an unearmarked balance of £1.758m. This equates to 2.6% of annual revenue expenditure. 1.13 Full details of the capital and revenue budgets are contained in Appendix 1 and Appendix 2 respectively. A table with the proposed rent charges for 2026/27 is included in Appendix 3. 2. Background 2.1 Section 203 of the Housing (Scotland) Act 1987 includes a requirement for local authorities to maintain a Housing Revenue Account (HRA) to record all income and expenditure related to their direct provision of housing. Councils must estimate, annually, the amounts to be debited or credited to the account, through setting a budget, which is returned to the Scottish Government and published annually. 2.2 The Scottish Social Housing Charter sets the standards and outcomes that all social landlords should aim to achieve when performing their housing activities. When developing the HRA Business Plan, these standards and outcomes must be taken into account. 2.3 Value for money must be considered when setting tenants’ rents. An annual review of all income and expenditure is undertaken, ensuring a balance is struck between the level of services provided, the cost of these services, and affordability for current and prospective tenants and service users. 2.4 At the Council meeting on 12 February 2025, members approved a rent increase of 3.84% for 2025/26 and noted indicative rent increases of 3.84% for the remaining 29 years of the Business Plan. 2.5 The annual review of the HRA Business Plan financial model which has been undertaken over the last six months provides assurance regarding the financial sustainability of the HRA and its ability to support investment in the Council's housing stock over the remaining life of the plan. Capital Investment 2.6 The 10-year capital investment programme has been reviewed and is detailed in Appendix 1. The programme will be funded by a combination of government grants, Capital Funded from Current Revenue (CFCR), prudential borrowing, reserves, and contributions towards the new build programme from the Affordable Housing Account.
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Total planned capital expenditure in 2026/27 is £70.10m, and £446.07m over the next 10 years to 2036. Asset Management 2.7 The Housing Assessment Management Plan (HAMP) was reviewed during 2025 and subsequently approved by Cabinet on 2 December 2025. The HAMP has informed the review of the 30-year HRA Business Plan. The HAMP recognises the HRA affordability challenges being experienced, prioritises the need to meet statutory compliance obligations, and sets the foundations for the future approach to asset management in the context of our evolving sustainability commitments and delivery of the Scottish Government’s Housing to 2040 strategy. The Housing Asset Management Board (HAMB) monitors delivery of the HAMP and capital investment programmes. 2.8 Following the publication of the Scottish Housing Regulator’s guidance on Integrated Asset Management (IAM) in early 2023, officers in Housing and PMI carried out a joint self-assessment to evaluate the Council’s position against the five IAM principles and ensure tenants’ homes remain sustainable and fit for purpose over the short, medium and long term. This self-assessment highlighted several resourcing and data- integration gaps and informed an action plan aimed at delivering a comprehensive RAG rating for each property, drawing on data such as property condition, repair history, SIMD indicators, demand trends and tenancy information. Currently this information is held across several systems, which do not integrate at the level required to demonstrate robust asset performance. To address this issue, a bespoke IAM dashboard will be developed during 2026 to enable data from all systems to be combined and provide clearer asset performance insight. Social Housing Net Zero Standard 2.9 The Scottish Government has developed and consulted on a new Social Housing Net Zero Standard (SHNZS) in Scotland. This new standard will replace the second Energy Efficiency Standard for Social Housing (EESSH2). This new standard will likely require higher fabric performance in homes and the replacement of ‘polluting’ heating systems with ‘clean’ alternatives across the housing stock. These proposals have significant implications for how assets are managed, including the replacement of heating systems and other building elements such as windows, roofs, and insulation. 2.10 North Ayrshire Council’s response to the SHNZS consultation was approved by Cabinet in February 2024. Within this response concerns were highlighted regarding a potential major funding shortfall if the standard was implemented. At the time of the report, it was noted that the 30-year HRA Business Plan included a budget of £132m for energy efficiency upgrades within existing properties. Of this, £111m was allocated for the like for like replacement of existing heating systems, the majority of which are gas systems. It was also noted within the report that initial estimates suggested that replacing gas systems with air source heat pumps could be in the region of £370m, meaning a potential funding gap in excess of £200m. 2.11 Current projections, informed by data from the ongoing Pathfinder Project and updated market costs, continue to suggest a significant funding shortfall should the SHNZS be implemented without supplementary financial support. The revised Business Plan includes an allocation of £125 million for heating system replacements. Assuming that ASHPs will be the preferred technology, the estimated total cost for these replacements is around £303 million over the 30-year period. This results in a current projected shortfall of £178 million for heating systems alone, a figure that is expected
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to increase once inflation is factored in. 2.12 These projections do not account for the additional costs associated with fabric improvements required to achieve the proposed fabric efficiency ratings and to ensure the effective operation of ASHP installations. The projections also assume that ASHPs will need to be replaced on a cyclical basis, estimated at every 15 years. However, due to limited historical data, it is difficult to provide more precise forecasts. Furthermore, it is anticipated that the longevity and maintenance costs of these systems will be influenced by their location and environmental conditions, with maintenance expected to be higher than that of the Council’s current heating systems. 2.13 In August 2024 the Council commissioned a pathfinder project which aims to assess the financial, technical and customer implications associated with the emerging standard. The project focuses on the Council’s traditional housing stock constructed between 1945 and 1960, which represents approximately 75% of the overall portfolio. A representative sample of properties within this group has been selected for detailed assessment. This includes full property surveys, evaluation of a range of fabric improvement measures and replacement heating options. Engagement with tenants will provide valuable insights into the practical usability of new systems and help ensure that improvements meet the needs of residents, thereby increasing acceptance and long-term effectiveness to understand usability and experience. A total budget of £0.50m was allocated to the pathfinder project in 2024/25. Works are ongoing, with monitoring equipment now installed in several properties. Challenges in scoping the project, arising from ongoing policy uncertainty and the identification of suitable properties alongside access issues, have meant the budget has been reprofiled, with a projected spend of £0.025m in 2025/26 and the remainder of the budget carried forward into the next financial year to facilitate the implementation of improvement measures. The findings from the property assessments and tenant engagement will inform the Council’s strategy for upgrading its housing stock, with detailed reporting expected by the end of 2027. Capital Improvement Works 2.14 The planned capital programme will deliver major repairs and improvement works and assist the Council in meeting the Scottish Housing Quality Standard (SHQS). The planned improvements to the housing stock in 2026/27, include: Programme No. of properties 2026/27 Investment £m 2025/26 projected completions 2026/27 programme Bathroom replacement 166 221 1.34 Kitchen replacement 522 581 3.24 Electrical rewiring 300 199 0.69 Heating upgrades 624 859 2.57 Traditional rendering 119 166 2.50 Insulated rendering 16 31 0.60 Roofing 83 119 1.36 Solar PV 457 462 3.11
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Window replacement 68 140 0.85 Smoke detection 1,038 1,877 1.09 Strategic Housing Investment Plan (SHIP) 2.15 The Business Plan for 2026/27 reflects the SHIP 2026–2031 approved by Cabinet on 28 October 2025, which includes provision of £168.74m for the delivery of a further 691 new build homes, a building refurbishment to create three homes, and the purchase of 60 homes from the open market, supported by an estimated £82.80m government grant. 2.16 A total of 1,666 new homes are targeted for completion by the Council by March 2031, which is an increase of 23 homes against the 1,643 target in SHIP 2025-2030. 975 homes were completed by 31 December 2025, leaving a balance of 691 for delivery by 2031. The SHIP includes delivery of 135 homes from the Council’s shadow programme, which have been assumed to be cost neutral (i.e., no HRA funding beyond future rental income from each development). Higher than normal benchmark grant rates will be required from Scottish Government to deliver these schemes without impacting upon the Business Plan. The shadow projects are anticipated to cost £27.77m, to be offset by £17.26m government grant, compared to the ‘standard’ estimated benchmark rate of £12.39m. Estate Based Regeneration Programme (EBRP) 2.17 The Estate Based Regeneration Programme was originally approved by Cabinet in January 2019 and commenced in April 2019, with a total budget of £9.8m. The programme seeks to improve housing estates across North Ayrshire, addressing key priorities for tenants such as areas of low demand, antisocial behaviour, street parking and external appearance. 2.18 Since its introduction, the programme has successfully delivered an additional 852 new parking spaces, the demolition of low demand flatted blocks, landscaping at four sites, a significant fencing programme, and some smaller works. 2.19 Several EBRP projects have been completed during 2025/26, with work ongoing on the remaining 14. A review of the programme has been undertaken, and revised funding requirements have been confirmed. Total investment of £5.47m has been included in the Business Plan to complete the remaining projects, as detailed in the table below. Project Estimated completion Previous years £m 26/27 £m 27/28 £m 28/29 £m Project total £m Grange Court, Stevenston (Regeneration project 14) Autumn 2026 0.30 0.14 - - 0.44 Ad hoc improvements Spring 2029 0.11 0.04 0.04 0.04 0.21 Subdivisional fencing Spring 2029 0.77 0.15 0.15 0.15 1.22 Fergushill Road flats, Kilwinning Spring 2027 0.40 0.10 - - 0.50
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Confidential project, Irvine (Regeneration project 1) Spring 2028 - - 0.32 - 0.32 Confidential project, Saltcoats (Regeneration project 10) Spring 2029 0.15 0.20 0.10 0.35 0.80 Guthrie Road, Saltcoats (Regeneration project 11) Spring 2027 0.04 0.15 - - 0.19 Old Raise Road, Saltcoats (Regeneration project 12) Spring 2029 0.12 0.10 0.26 0.26 0.74 Hayocks Road, Stevenston (Regeneration project 15) Spring 2028 - 0.14 0.14 - 0.29 Confidential project, Irvine (Regeneration project 2) Spring 2029 - - - 0.84 0.84 Confidential project, Ardrossan (Regeneration project 8) Spring 2029 - - 0.05 0.09 0.14 Royal Avenue/Holehouse Road, Largs Spring 2027 0.03 0.25 - - 0.28 Town Centre flats (east), Kilwinning Spring 2029 - 0.20 0.30 0.36 0.86 Town Centre flats (west), Kilwinning Spring 2029 0.14 0.10 0.23 0.22 0.70 Total 2.05 1.57 1.59 2.31 7.52 Sheltered Housing Reprovisioning Programme 2.20 The Sheltered Housing Reprovisioning Programme was initiated in 2020 with the ambition of completely refurbishing 11 sheltered housing units and delivering high- quality, energy efficient homes which meet tenants’ needs and aspirations. 2.21 Barnett Court, Saltcoats (22 houses) was completed in January 2024 and Cheviot Court, Irvine (22 houses) was completed in November 2024. 2.22 The table below provides further details on the remaining nine sheltered housing units, with the programme expected to be completed in early 2029. All project budgets have been reviewed, and no additional funding requirements have been identified; the Business Plan includes £35.77m to deliver the remaining projects. Complex Units Estimated Start Estimated Completion Project budget (2026/27) £m Laigh Court, Beith 21 Spring 2026 Early 2027 3.12 Vineburgh Court, Irvine 22 Spring 2026 Spring 2027 3.77 Moorburn Park, Largs 20 Winter 2026 Winter 2027 3.28 Heathfield House, Irvine 23 Spring 2027 Summer 2028 5.38 Regal Court, Dalry 24 Spring Spring 3.15
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2027 2028 Bonnie Lesley Court, Stevenston 22 Summer 2027 Summer 2028 3.76 Bryce Knox Court, Irvine 21 Autumn 2027 Autumn 2029 3.32 Headrigg Gardens, West Kilbride 21 Winter 2027 Winter 2028 3.78 George Aitken Court, Ardrossan 23 Spring 2028 Early 2029 3.97 SHU sustainability works - - - 2.24 Totals 197 35.77 Redburn Grove, Irvine 2.23 Scottish Government issued design guidance relating to the provision of accommodation for gypsy/travellers in 2021.The guidance informed consultation with Redburn Grove tenants regarding their aspirations for the future of the site, and a draft redevelopment plan was subsequently prepared, alongside estimated costs to be met from Scottish Government grants and the Housing Revenue Account. 2.24 The redevelopment proposals and costs were set out in a report to Cabinet on 3 June 2025, which recommended inclusion of Redburn Grove as a new project in SHIP 2026- 31, while noting that the site is currently in General Fund ownership and its transfer to the Housing Revenue Account (HRA) would require there to be no financial burden to existing Housing Revenue Account tenants for the works or ongoing costs. 2.25 There is currently an anticipated £3.52m funding deficit to deliver the estimated £4.44m scheme, which will be sought from Scottish Government in the first instance. The Scottish Government has indicated that funding for the reprovision and redevelopment of Gypsy/Traveller sites will be available from 2026/27 through local authorities’ Resource Planning Assumptions and allocated through Strategic Housing Investment Plans. 2.26 In recognition of the current standard of accommodation and site fees, and the recently approved SHIP project, it is recommended that no increase is applied to Redburn Grove site fees for 2026/27. Revenue Expenditure 2.27 The proposed 2026/27 HRA Revenue Budget is outlined in Appendix 2. Planned expenditure of £68.25m will predominantly be funded by tenants’ rental income and charges for services. 2.28 An analysis of the revenue budget is shown in the diagram below.
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2.29 The revenue budget includes funding of £30.10m for property-related expenditure in 2026/27, which represents 44.10% of the total planned expenditure. This expenditure will assist the Council in maintaining its cyclical and responsive maintenance requirements. Revenue-funded property budgets for 2026/27 have increased by 15.4% compared to 2025/26, mainly due to increases in the cost and volume of responsive repairs; an increased focus on timber and dampness work in advance of the introduction of the sections of the Housing Scotland Act 2025 pertaining to Awaab’s Law; increased funding for storm damage remedial works, recognising that extreme weather patterns experienced in recent years are likely to continue; and tenant safety works in relation to statutory testing and fire safety. Provision has also been made for enhanced environmental maintenance and investment in non-adopted roads, paths and street lighting, in support of the Council Plan wellbeing priority, wider corporate regeneration investment, and anticipated priorities emerging from the forthcoming local housing plans. 2.30 The Aids and Adaptations budget was increased by £0.17m in the 2025/26 Business Plan for two years, with the aim of reducing tenants’ waiting times for assessed works. This targeted increase in funding, alongside improved joined planning between Housing and the North Ayrshire Health and Social Care Partnership, has been successful in reducing average waiting times from 57.25 days in 2024/25 to 42.98 days as of 31 December 2025. Rental Income and Stakeholder Engagement 2.31 The Business Plan includes a projected housing stock of 13,377 houses at 1 April 2026, with a further 152 new homes targeted for completion during 2026/27, which are estimated to generate gross rental income of £66.19m in 2026/27. Income from other property rents and service charges account for £2.06m, bringing the total anticipated income for 2026/27 to £68.25m. Rent increase and affordability for tenants 2.32 To meet the investment requirements of the 30-year Business Plan, including maintaining the Scottish Housing Quality Standard (SHQS) and working towards the impending Scottish Housing Net Zero Standard (SHNZS), delivering the Council house building programme and continuing to deliver customer-focused support services, it is proposed to increase housing rents by 3.84% for 2026/27. The Business Planned and cyclical £9.31m 13.65% Reponsive Repairs £8.92m 13.06% Other property costs £5.21m 7.63% Void Costs £4.58m 6.71% Aids & adaptations £1.79m 2.63% Infrastructure £0.29m 0.43% Capital Financing £24.07m 35.27% Supplies & Services £0.38m 0.55% Transport Costs £0.02m 0.03% Administration Costs £0.95m 1.40% Central Support Costs £2.38m 3.48% Internal Services £4.31m 6.31% Employee Costs £6.05m 8.86% Property costs £30.10m
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Plan indicates anticipated rent increases of 3.84% for each of the remaining 28 years of the Business Plan. It should be noted that, due to the current financial climate, inflation volatility and continued pressure on the HRA, this forecast may be subject to change following the next review of the Business Plan in autumn 2026. 2.33 Indicative rent figures for 2025/26 show an average weekly rent for North Ayrshire Council of £91.16 compared to the Scottish local authority average weekly rent of £94.42, as detailed in the table below. Landlord Average Rent 2025/26 (indicative) East Ayrshire Council £90.94 North Ayrshire Council £91.16 South Ayrshire Council £88.21 Scottish average: local authorities £94.52 Cairn Housing Association (formerly ANCHO) £97.43 Cunninghame Housing Association £111.19 Riverside Scotland (Irvine Housing Association) £107.60 Scottish average: registered social landlords £111.11 Scottish average: All landlords £102.18 Indicative figures for landlords/averages are calculated by applying their stated average weekly rent increase to their 2024/25 average weekly rent. 2.34 Housing Benefit and Universal Credit support for housing costs is available to households with lower incomes. Approximately 51% of tenants are currently in receipt of full benefit entitlement for housing costs, 13% are in receipt of partial benefit entitlement and therefore pay some rent, and 36% of tenants have no benefit entitlement and pay full rent. Housing staff offer advice and assistance to any tenants who are experiencing financial difficulties. Staff also signpost or refer tenants for other services such as welfare benefits advice, income maximisation, budgeting, debt advice, tenancy support and other support services. Stakeholder engagement 2.35 The Housing (Scotland) Act 2001 requires councils to consult with tenants and have regard to the views expressed prior to setting rents. 2.36 In preparing the HRA budget for 2026/27, two options for rent increases were identified by officers and presented to Elected Members, the Housing Business Plan Group and the North Ayrshire Network in December 2025. The options were subsequently included in the tenant consultation exercise which took place between 5 December 2025 and 16 January 2026, namely, to increase rents by 3.84% (an average increase of £3.50 per week), or 4.84% (an average increase of £4.41 per week). 2.37 The lower rent increase option maintains HRA service provision and the planned increase in SHIP investment. The higher rent increase option maintains HRA service provision and the planned increase in SHIP investment and provides an additional £7.5m for expansion of the Estate-based Regeneration Programme. Further information on both options is included within the Rent Level Options document at Appendix 4.
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2.38 A total of 1,701 responses were received from the tenants’ consultation - a response rate of 13.2%. This is the highest response to a rent consultation by North Ayrshire Council to date and demonstrates increasing engagement year on year - 2024: 1,473 (11.5%) and 2023: 1,315 (10.2%). Responses received from the consultation indicated a 75% preference for ‘Option 1’, i.e., a rent increase of 3.84% for 2026/27. 2.39 Tenants were invited to respond by completing an electronic form. A letter was issued to all tenants, emails and SMS messages were sent, posts were added to social media channels, adverts were placed in the local press, posters were placed in key locations, and tenants were supported to complete the consultation when calling or visiting offices. Housing Services staff also held local drop-in events to assist tenants to complete the consultation. 2.40 During the consultation period tenants had the ability to provide their own comments on the proposed rent increase options. The most common response themes included: • Affordability and cost of living concerns • Recognition of positive service experiences • Views on repairs, maintenance and service quality • Support for investment improvements • Concerns over estate and neighbourhood maintenance • Specific requests for upgrades to individual properties • Fairness and inequality concerns (from people paying full rent) • Requests for improved transparency and communication on plans • Lack of trust / consultation scepticism Officers are currently following up on the consultation feedback with individual tenants, where appropriate, to identify any action required. Tenants communication plans are also being reviewed to ensure that sufficient, clear information is provided on how tenants’ rents are allocated to fund investment and maintenance programmes, and the standards of service we strive to deliver. Service Charges 2.41 In addition to rent charges, Housing Services apply a service charge to tenants in 25 sheltered housing units to recover the cost of heating and electricity within their individual homes. It is proposed that these service charges are increased by 5.00%, in line with similar increases in charges proposed for the General Fund for 2026/27. A review of recharges to tenants for energy usage, to ensure they are reflective of energy costs incurred, is currently being undertaken and will determine recommendations for future service charges. Risk Management 2.42 In developing the HRA Business Plan, the risk landscape was reviewed to capture major/ strategic risks and ensure effective mitigation is in place. The Council has an effective system of internal control in place, which is subject to regular review by our internal and external audit functions and regulatory authorities. The following major/strategic risks have been considered in preparing the latest Business Plan: Sustainability of the HRA Business Plan
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2.43 The economic climate has had a significant impact on the long-term sustainability of the HRA Business Plan. Key challenges include rental income maximisation, inflation, increased building regulations, and the risk of reductions to external capital grant funding. 2.44 The awaited Social Housing Net Zero Standard poses a significant risk due to the potential for increased costs emerging from the requirements of the finalised Standard, and uncertainty regarding availability of external grant funding. To minimise the risk to the HRA Business Plan, funding has been set aside in the capital programme to allow for some climate-related works to be undertaken in advance of the introduction of the Standard. 2.45 The Council continues to explore opportunities for operational and management efficiencies and reflect any savings identified in the HRA budget to ensure future years rent level increases are kept as low as possible. The Housing Services Transformation Programme was initiated in 2023 and includes projects that will maximise efficiency, ensure value for money and keep future rent increases as low as possible. The four key transformation projects are noted below. • Income maximisation – Maximisation of income through improved rental collection and reduced rent arrears for our current and former tenants. Review of charges to tenants for energy usage to ensure they are reflective of energy costs. • Repairs and maintenance – Assessment of increased repairs demand, review of working practices and a full review of the repairs policy, including tenant/ landlord responsibility, whilst maintaining customer satisfaction. • Void works (volume and cost) – Review of works carried out the void stage, assessing tenant/ landlord responsibility and scope of work undertaken, whilst ensuring new tenant satisfaction is maintained. • Aids and adaptations – Enhanced joint working with the Health and Social Care Partnership to ensure value for money through smarter work practices, reduced wastage and improved customer waiting times. The delivery of the Housing Transformation Programme is supported by £2.00m earmarked funds approved in the 2023 Business Plan update. This allows for investment in areas such as ICT, digitalisation and resourcing to achieve long-term efficiencies and service improvement. The Housing Transformation Board is chaired by the Head of Housing & Public Protection and meets six-weekly to review progress. Progress on Housing transformation projects is reported regularly to the Corporate Transformation Board. 2.46 Benchmarking of rent levels is undertaken annually, alongside national conversations regarding proposed increases. Rent levels are monitored to ensure that the reasons for any variations against the Scottish local authority average are investigated and understood. Housing staff offer advice and assistance to any tenants who are experiencing financial difficulties. Housing Services also invest significant resources in the Money Smart Team, within North Ayrshire Health and Social Care Partnership. The team specifically focuses on welfare/benefits and debt advice, to maximise tenants’ income and support households experiencing financial difficulties. National Housing Emergency
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2.47 Pressures on the housing system, nationally and locally, have been well documented. In North Ayrshire, a range of measures are being undertaken across the housing system, including increasing housing supply, managing the demand for homeless people by way of temporary and permanent accommodation, and the ongoing preparation of a Homelessness Prevention Strategy. Senior management oversight of daily demand and occupancy of temporary accommodation is in place. 2.48 Substantial progress has been made in bringing long-term voids back into use and senior officers continually review void levels within temporary accommodation and mainstream housing. The purchase of empty homes is a strategic priority. When opportunities arise to ‘buy back’ a property, consideration is given to housing supply and demand in that area. SHIP delivery - Resource Planning Assumptions 2.49 Volatility in Resource Planning Assumptions over the last two years has created a risk to the delivery of the Strategic Housing Investment Plan. Regular communication is in place with the Scottish Government’s More Homes Division to discuss funding availability and opportunities to utilise slippage in other local authority areas. The Council has an approved ‘shadow programme’ which ensures we are well placed to take advantage of any additional funding, should it become available. The Scottish budget laid in Parliament on 13 January 2026 indicated a 5% uplift in funding for the national affordable housing supply programme. Individual local authority allocations for 2026/27 and beyond are not yet known and will be reflected in the SHIP 2026-31 and Housing Business Plan, once confirmed. Tenant safety 2.50 Compliance with tenant safety is a key priority for the Council. The Council has well- established procedures to ensure compliance with statutory duties and responsibilities in relation to tenant safety. Regular assessments and assurance checks are undertaken to ensure the necessary training, skills, experience, and knowledge are in place across all relevant Council services. The table below shows performance information for each compliance area. 23/24 24/25 25/26 (to 31 Dec 2025) 25/26 projection Percentage properties meeting SHQS 76.93% 94.00% 94.43 94.43 No of times in the reporting year landlord did not meet statutory duty to complete a gas safety check 25 1 0 0 Electrical safety - no of times in the reporting year landlord did not meet the requirement to complete an EICR within five years of the last EICR N/A – new indicator N/A – new indicator 15 15 Number of homes that do not have ‘satisfactory equipment for detecting fire and giving warning in the event of fire or suspected fire’ installed at the year end. N/A – new indicator N/A – new indicator 0 0
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Average length of time taken to resolve cases of damp and/or mould by cause N/A – new indicator N/A – new indicator TBC TBC 2.51 The Scottish Housing Quality Standard (SHQS) sets minimum standards for social housing in Scotland, covering tolerable conditions, disrepair, energy efficiency, modern facilities, and safety. The Council remains committed to achieving full compliance through structured investment in existing stock, inspection and maintenance regimes, enhanced access processes, and regular reporting to the Housing Asset Management Board (HAMB), Council Members, and the Scottish Housing Regulator. 2.52 Gas Safety - the Gas Safety (Installation and Use) Regulations 1998 require that gas fittings and flues are maintained in a safe condition for tenants and to carry out safety checks for appliances and flues every year. North Ayrshire Council employs the services of an external contractor to carry out all gas related works, under the management of PMI. In 2024/25 we reported 100% compliance and in 2025/26 we are 100% compliant at 31 December 2025. 2.53 Electrical safety - a five-year testing programme is in place across the housing stock. Monthly performance information regarding electrical testing compliance continues to be reported to the Scottish Housing Regulator, following their concerns regarding the level of failures reported in the Annual Return on the Charter for 2023/24. Officers will continue to prioritise efforts in this area to aim for 100% compliance. 2.54 Fire detection - the Council ensures that smoke, heat and carbon monoxide alarms are tested and are working effectively, prior to letting properties to tenants, and that tenants are aware of their responsibilities to report any faulty alarms. The Council previously upgraded detection equipment across the housing stock, as part of the capital programme. The ongoing inspection and replacement programme aims to ensure compliance with current fire safety standards and legislation; progress is regularly monitored and reported. 2.55 Damp and mould - the Council is currently developing of a comprehensive Condensation, Damp, and Mould Strategy as part of its wider Housing Asset Management Plan and in advance of the introduction of the sections of the Housing Scotland Act 2025 pertaining to Awaab’s Law. This strategy sets out a proactive framework for identifying, assessing, and mitigating risks associated with condensation, dampness, and mould across the housing stock. By establishing a clear review process and implementing targeted measures, the Council aims to safeguard tenant health and wellbeing while ensuring the long‑term quality and resilience of its properties. This approach reflects an ongoing commitment to maintaining high housing standards and addressing issues that may impact the condition or performance of the housing asset base. Achieving value for money 2.56 Within the HRA Business Plan, inflation has been estimated using forecasts for the appropriate indices. In addition, service delivery costs are benchmarked periodically, and a competitive tendering process is undertaken for fixed term contracts.
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Income maximisation 2.57 Income collection, rent arrears and void rent loss are monitored through the Housing performance management framework, with delivery of improvement workstreams monitored within the Housing Services Transformation Programme. 2.58 Rent collected, as a percentage of rent due, was 100.98% for 2024/25, which was higher than 2023/24 (95.92%) and higher than the Scottish average of 100.17%. 2021/22 2022/23 2023/24 2024/25 Percentage of total rent due collected in the previous year North Ayrshire Council 99.00% 97.76% 95.92% 100.98% Scottish average 99.28% 99.03% 99.42% 100.17% 2.59 North Ayrshire Council, similar to other landlords, has been impacted by higher rent arrears in recent years. Gross rent arrears, as a percentage of rent due, was 8.03% for 2024/25, which was higher than 2023/24 (7.48%) and higher than the Scottish average of 6.17%. 2021/22 2022/23 2023/24 2024/25 Percentage gross rent arrears of rent due North Ayrshire Council 6.63% 7.14% 7.48% 8.03% Scottish average 6.34% 6.86% 6.74% 6.17% 2.60 The percentage of rent due but not collected through homes being empty was 0.56% for 2024/25, which is lower than 2023/24 (0.72%) and lower than the Scottish average of 1.26%. 2021/22 2022/23 2023/24 2024/25 Percentage of rent due not collected through homes being empty in the last year North Ayrshire Council 0.53% 0.56% 0.72% 0.56% Scottish average 1.42% 1.37% 1.39% 1.26% Data accuracy 2.61 Robust processes are in place to ensure the accuracy and integrity of data, supported by the Housing Innovation and Digital Improvement Team’s system expertise. The Housing Performance Management Framework is subject to ongoing review, and external validation has been procured to strengthen the quality of data submitted through the Annual Return on the Charter. Internal and external audit arrangements further support assurance. Continued improvement activity across the housing teams is enhancing overall data quality, ensuring reliable performance information and improved real time enquiry capability. Treasury management 2.62 The Council has a clear Treasury Management Strategy, reflecting risk management and the wider operating environment. Paragraph 2.64 provides information on HRA debt financing costs, which are considered prudent and affordable within the 30-year HRA Business Plan. Fraud 2.63 There are effective risk management arrangements and procedures in place to minimise the risk of fraud attempts being successful. The Council also takes part in the National Fraud Initiative, to prevent and detect fraud.
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Treasury Management 2.64 The Prudential Code for Capital Finance in Local Authorities requires councils to demonstrate that capital investment programmes and the levels of expenditure to be funded by borrowing are affordable, prudent, and sustainable. The Key Performance Indicator which demonstrates this is the ‘ratio of financing costs to the net revenue stream’. For 2024/25 the HRA ratio was 21.3%, compared to the Scottish average of 20.3%. The estimated indicators for the next 3 years are shown below. The rising ratio is indicative of the significant capital investment programme, as outlined in the Strategic Housing Investment Plan, and work to maintain the SHQS and achieve the Scottish Housing Net Zero Standard (SHNZS). The financing costs are considered prudent and affordable within the 30-year HRA Business Plan. Proportion of financing costs to net revenue stream 2025/26 Probable % 2026/27 Estimate % 2027/28 Estimate % 2028/29 Estimate % HRA 24.7% 28.7% 30.4% 31.4% Revenue and Capital Balances 2.65 The HRA revenue budgetary control report to 30 November 2025 presented to the Cabinet meeting on 27 January 2026 advised elected members of projected HRA reserves of £23.640m at 31 March 2026. This includes ‘unearmarked’ reserves of £1.758m, which equates to 2.6% of planned revenue expenditure for 2026/27. This is within the recommended range of 2-4% and provides a degree of security to meet any unforeseen short-term cost pressures. An analysis of the HRA balances is shown in the table below. Balance at 31 March 2025 Funding of Projects Addition/ (Use) of Earmarked Funds Re- Allocation Projected Balance at 31 March 2026 Future Years’ Commitments £m £m £m £m £m £m HRA not earmarked 1.758 - - - 1.758 - HRA earmarked Council House Building Fund 13.213 - 1.499 - 14.712 2.713 Transformation Programme 2.000 - - - 2.000 0.678 Sustainability Fund 5.000 - - - 5.000 4.596 Tenant-led budget 0.170 - - - 0.170 - Total earmarked funds 20.383 - 1.499 - 21.882 7.309 Total HRA Reserves 22.141 1.499 - 23.640 7.309 3. Proposals 3.1 That the Council:
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(i) approves the 10-year HRA capital investment programme, as detailed in Appendix 1 (ii) approves the HRA revenue budget for 2026/27, as detailed in Appendix 2 (iii) approves a rent increase of 3.84% in 2026/27 for council houses, garages / lock ups (iv) approves a 5% increase to service charges (v) note the indicative rent increases of 3.84% for the remaining 28 years of the Business Plan. 4. Implications/Socio-economic Duty: Financial 4.1 The proposed rent increase of 3.84% for 2026/27 will result in significant resources to invest in the Council's housing stock, with total planned revenue expenditure of £68.25m. This includes CFCR of £5.58m to support a capital programme totalling £70.10m in 2026/27. Human Resources 4.2 None Legal 4.3 The Council has consulted with tenants on the proposed rent increases in line with the legal requirement to do so. Equality/Socio-economic 4.4 The investment proposals outlined in the report will ensure the housing stock continues to support the needs of our tenants, including those with accessibility issues due to age or disability. 4.5 The investment in our properties to provide safer, warmer, and more fuel-efficient homes will support improvements in the health and wellbeing of all our tenants, including young people and families. Climate Change and Carbon 4.6 The budget proposals include substantial investment which will directly support the delivery of the Council's Environmental Sustainability and Climate Change strategy. Key Priorities 4.7 Delivery of the HRA Business Plan supports the Council Plan strategic priorities: ‘Wellbeing’; ‘Climate Change’; ‘A Sustainable Council’: and ‘Communities and Local Democracy’. It supports the ambitions of the Council’s Regeneration Delivery Plan to drive forward development on strategic regeneration sites, including town centres. There is also evidence that children and young people can benefit from improved cognitive development and a reduction in behavioural issues through living in a more attractive, warmer, and better ventilated environment and the provision of new
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affordable housing also supports the Council Plan priority that children and young people experience the best start in life. Ongoing investment in our Arran housing stock will also support our island communities and their economies. Examples include: Wellbeing • £1,148.85m improvements to existing homes, £35.77m towards our Sheltered Housing Reprovisioning Programme and £5.47m towards our Estate Based Regeneration Projects • £136.90m to build 691 units, refurbish 3 units and buy back 60 units by the end of the Strategic Housing Investment Plan 2026-2031 (excluding shadow programme) • Maximising tenants’ access to and uptake of benefits, entitlements and financial advice Communities and Local Democracy • Service delivery through a community-based housing model • ‘No Wrong Door’ approach • Extensive tenant and resident engagement Climate Change • £186.14m investment to tackle climate change and achieve a net-zero housing stock • Solar panels installed on new homes and retrofitting to existing homes • New homes with sustainability features including air source heat pumps, electric vehicle charging points, solar panels etc A Sustainable Council • Robust business planning processes, ensuring affordable, prudent and stable management of the Housing Revenue Account • Housing transformation projects focussing on maximising efficiencies and value for money for our tenants • Maximising value from the use of our assets and focusing our investment on priorities Community Wealth Building 4.8 Through delivery of the SHIP, contractors are required to participate in the Council’s Community Benefits Programme. Development projects aim to deliver new employment opportunities for the area, including jobs and apprenticeships. Islands Communities Impact Assessment 4.9 Tenants on our two island communities were included in the tenant consultation exercise. United Nations Rights of the Child (UNCRC) 4.10 Continued investment in our homes will help to ensure safe, adequate, and stable housing which can support a child's development. Consumer Duty 4.11 The proposed HRA capital investment programme and revenue budget for 2026/27
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and the consequential rent levels, will ensure continued investment in our properties; ensuring a balance is struck between the level of services provided, the cost of these services, and affordability for current and prospective tenants and service users. 5. Consultation 5.1 Housing Services carried out a six-week consultation programme with key stakeholders to gather their views of current service provision and priorities for future service delivery. This engagement included meetings with elected members, the Housing Business Plan Group, Tenants and Residents Network and consultation with all tenants. 5.2 A total of 1,701 responses were received - a response rate of 13.2%. This is the highest response to a rent consultation by North Ayrshire Council to date. Responses received from the tenants’ consultation indicated a 75% preference for ‘Option 1’, a rent increase of 3.84% for 2026/27. Tenants were invited to respond by completing an electronic form. A letter was issued to all tenants, emails and SMS messages were sent, posts were added social media channels, adverts were placed in the local press, posters were placed in key locations and tenants were supported to complete the consultation when calling or visiting offices. Housing Services staff also held local drop in events to assist tenants to complete the consultation. DAVID W.HAMMOND Executive Director (Communities & Housing) For further information please contact Yvonne Baulk, Head of Service (Housing & Public Protection), on 01294 324542. Background Papers • Housing Revenue Account (HRA) Capital Investment Report approved by North Ayrshire Council on 12 February 2025 • Strategic Housing Investment Plan 2026-2031 approved by Cabinet on 28 October 2025 • Revenue Budget 2025/26: Financial Performance to 30 November 2025 approved by Cabinet on 27 January 2026 • Capital Programme Performance to 30 November 2025 approved by Cabinet on 27 January 2026 • North Ayrshire Asset Management Strategy & Plans approved by Cabinet on 2 December 2025
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DRAFT HRA CAPITAL PLAN 2026/27 TO 2035/36 Appendix 1 Project Description Total Project Budget Prior Year Spend 2025/26 Projected Spend 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 10 Year Programme Total £ £ £ £ £ £ £ £ £ £ £ £ £ £ EXPENDITURE Council House Building Acquisition Houses-Open Market 1,341,270 1,380,615 1,421,130 1,441,636 0 0 0 0 0 0 5,584,651 Bourtreehill Village, Irvine (Redev 7) 10,037,524 248,855 128,176 421,308 3,371,137 5,868,048 0 0 0 0 0 0 0 9,660,493 James MacFarlane, Ardrossan (Redev 8a) 4,784,118 4,514,777 269,341 0 0 0 0 0 0 0 0 0 0 0 Garnock Academy, Kilbirnie (Redev 9) 12,233,264 6,583,095 5,650,169 0 0 0 0 0 0 0 0 0 0 0 Ayrshire Central, Irvine (Redev 12) 49,672,687 7,491,180 16,653,034 14,231,967 11,296,506 0 0 0 0 0 0 0 0 25,528,473 Montgomerie Park, Irvine 49,532,084 7,456,645 250,000 10,528,206 13,291,277 13,243,335 4,762,621 0 0 0 0 0 0 41,825,439 Stanecastle, Irvine (Redev 11a) 7,854,314 7,504,509 349,805 0 0 0 0 0 0 0 0 0 0 0 Fullarton Street, Irvine 13,302,808 63,331 70,000 1,027,925 10,567,831 1,573,721 0 0 0 0 0 0 0 13,169,477 Nursery Place, Ardrossan (Regen 1e) 1,775,219 0 25,000 729,258 1,020,961 0 0 0 0 0 0 0 0 1,750,219 Grange Court, Stevenston 1,532,642 0 25,000 628,184 879,458 0 0 0 0 0 0 0 0 1,507,642 Laburnum Ave, Beith /Newhouse Drive, Kilbirnie 2,953,447 2,696,356 257,091 0 0 0 0 0 0 0 0 0 0 0 King's Arms, Irvine (Regen 1c) 2,982,159 1,248,584 1,733,575 0 0 0 0 0 0 0 0 0 0 0 St Mary's, Largs 6,528,399 6,476,728 51,671 0 0 0 0 0 0 0 0 0 0 0 Redburn Grove 4,436,146 0 0 0 200,000 2,436,146 1,800,000 0 0 0 0 0 0 4,436,146 St Michael's Ph 3, Kilwinning 13,996,769 621,010 0 0 3,424,441 7,934,877 2,016,441 0 0 0 0 0 0 13,375,759 Guthrie Road, Saltcoats 1,859,200 0 0 0 0 0 650,000 1,209,200 0 0 0 0 0 1,859,200 Nelson Street Regeneration 1,079,858 45,630 176,772 857,456 0 0 0 0 0 0 0 0 0 857,456 Internal Management Charges 0 1,510,731 1,630,441 1,679,354 1,729,735 1,764,329 1,799,616 1,409,900 1,438,097 1,466,859 1,496,197 1,526,121 15,940,649 Contingency and Fees 12,779,640 854,719 3,186,799 2,816,575 3,552,547 2,369,000 0 0 0 0 0 0 0 8,738,122 SUB TOTAL - COUNCIL HOUSE BUILDING 197,340,278 45,805,418 30,337,164 34,212,590 50,664,127 36,575,992 12,435,027 3,008,816 1,409,900 1,438,097 1,466,859 1,496,197 1,526,121 144,233,726 Improvements to existing stock Bathroom Programme 0 Wet Room - Void 394,504 406,339 418,529 431,085 444,017 457,338 471,058 485,190 499,745 514,738 4,522,543 Bathrooms - Void 499,988 514,990 530,438 546,350 562,743 579,624 597,013 614,923 633,370 652,372 5,731,811 Wet Room - Planned 131,501 135,446 139,510 143,695 169,149 892,897 919,684 947,275 975,693 1,029,475 5,484,325 Bathrooms - Planned 304,994 314,142 323,567 333,275 332,017 1,756,261 1,808,950 1,863,217 1,919,116 1,989,735 10,945,274 Secondary Bathrooms Planned 12,518 12,893 13,280 13,679 14,089 50,791 52,314 53,884 55,500 57,165 336,113 Electrical Rewiring 687,988 695,043 715,894 737,371 759,492 1,568,505 1,615,561 1,664,027 1,713,948 1,765,367 11,923,196 Heating 2,573,780 2,650,994 2,730,524 2,812,439 2,896,813 2,959,260 3,048,038 3,139,479 3,233,664 3,330,674 29,375,665 Kitchens 2,123,198 2,186,894 2,252,501 2,320,076 2,389,679 4,502,819 4,637,903 4,777,041 4,920,351 5,067,962 35,178,424 Kitchens - Void 1,114,540 1,147,976 1,182,415 1,217,888 1,254,424 1,292,057 1,330,819 1,370,743 1,411,866 1,454,222 12,776,950 Roofing 1,362,876 1,383,666 1,478,590 1,451,184 1,693,154 1,787,285 1,840,904 1,915,055 1,972,506 2,168,653 17,053,873 Traditional rendering 2,500,362 2,527,422 2,644,606 2,765,507 2,785,328 3,583,798 3,667,468 3,802,052 3,914,909 4,382,184 32,573,636 EWI 599,236 637,123 1,668,517 675,924 696,201 1,917,462 1,777,256 1,830,574 1,885,491 1,942,056 13,629,840 Window Replacement 850,052 875,554 901,820 928,875 956,741 3,428,444 3,531,297 3,637,236 3,746,353 3,873,493 22,729,865 Smoke Detector Programme 1,091,337 1,124,078 1,157,800 1,192,534 1,228,310 589,779 607,472 625,696 644,467 663,801 8,925,274 Energy Efficiency 2,180,905 1,140,854 1,175,079 1,210,332 1,246,642 1,284,041 1,322,562 1,362,239 1,403,106 1,445,199 13,770,959 Path Finder Project 0 0 0 0 0 0 0 0 0 0 0 Solar Panels 3,112,160 3,205,525 3,301,690 3,400,741 3,487,600 3,803,076 3,917,168 4,034,683 4,155,724 4,297,974 36,716,341 HRA Slippage (1,073,280) 0 0 0 0 0 0 0 0 0 (1,073,280) SUB TOTAL - IMPROVEMENTS TO EXISTING STOCK 18,466,659 18,958,939 20,634,760 20,180,955 20,916,399 30,453,437 31,145,467 32,123,314 33,085,809 34,635,070 260,600,809 Other Capital works Estate Based Regeneration 2,700,237 1,700,018 1,068,500 0 0 0 0 0 0 5,468,755 Lift Replacement 0 0 0 0 0 0 0 0 0 0 Sheltered Housing Units 14,724,260 13,043,873 4,599,824 3,326,690 78,132 0 0 0 0 35,772,780 SUB TOTAL - OTHER CAPITAL WORKS 17,424,497 14,743,891 5,668,324 3,326,690 78,132 0 0 0 0 0 41,241,535 TOTAL EXPENDITURE 70,103,746 84,366,957 62,879,076 35,942,672 24,003,347 31,863,337 32,583,564 33,590,173 34,582,006 36,161,191 446,076,070 Income Affordable Housing Contribution (1,201,583) (1,530,283) (319,604) (753,421) (212,174) 0 0 0 0 0 (4,017,065) CFCR (5,580,084) (5,284,249) (5,447,318) (7,149,622) (7,335,145) (10,258,113) (10,580,571) (12,201,374) (13,054,058) (15,478,776) (92,369,310) Capital Grants (12,872,329) (15,887,954) (16,087,322) (5,620,770) 0 0 0 0 0 0 (50,468,375) Prudential Borrowing (48,869,522) (59,217,571) (40,473,542) (21,830,493) (15,035,424) (21,605,224) (22,002,993) (21,388,799) (21,527,948) (20,682,415) (292,633,931) Use of Reserves (1,580,228) (2,446,900) (551,290) (588,366) (1,420,605) 0 0 0 0 0 (6,587,389) TOTAL INCOME (70,103,746) (84,366,957) (62,879,076) (35,942,672) (24,003,347) (31,863,337) (32,583,564) (33,590,173) (34,582,006) (36,161,191) (446,076,070) Total Project Expenditure 0 0 0 70,103,746 84,366,957 62,879,076 35,942,672 24,003,347 31,863,337 32,583,564 33,590,173 34,582,006 36,161,191 446,076,070 Total Project Income 0 0 0 (70,103,746) (84,366,957) (62,879,076) (35,942,672) (24,003,347) (31,863,337) (32,583,564) (33,590,173) (34,582,006) (36,161,191) (446,076,070) Total Net Expenditure 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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Draft HRA Revenue Budget 2026/27 Appendix 2 Cost Type 2026/27 (£'000s) Income Rents: Council houses (66,193) Other rents (355) Utilities credit billling / Feed-in Tariff / RHI income (165) Other Income: External recharges (872) Internal recharges (654) Health resource funding (9) Gross Income (68,248) Expenditure Employee Costs 6,045 Property Costs: Responsive repairs 8,916 Void expenditure 4,576 Planned & cyclical maintenance 9,312 Infrastructure improvements 292 Aids & adaptations 1,792 Other property costs 5,210 Supplies and Services 376 Transport Costs 18 Administration Costs 955 Central Support Costs 2,376 Payments to Other Agencies, Bodies and Persons 2 Internal Services 4,308 Capital Financing: CFCR 5,580 Principal repayments 7,346 Loans Fund interest 11,488 Loans Fund expenses 156 Revenue interest (500) Gross Expenditure 68,248 Draft HRA Revenue Budget 2026/27
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PROPOSED 2026/2027 WEEKLY CHARGES Appendix 3 Element/ Attribute code Description VAT (%) 2025/26 weekly (excl VAT) 2025/26 weekly (incl VAT) % increase 2026/27 weekly (excl VAT) 2026/27 weekly (incl VAT) RENT0F Rent for 0 bed flat 0% £70.66 £70.66 3.84% £73.37 £73.37 RENT0H Rent for 0 bed house 0% £70.66 £70.66 3.84% £73.37 £73.37 RENT1F Rent for 1 bed flat 0% £89.29 £89.29 3.84% £92.72 £92.72 RENT1H Rent for 1 bed house 0% £89.81 £89.81 3.84% £93.26 £93.26 RENT2F Rent for 2 bed flat 0% £90.65 £90.65 3.84% £94.13 £94.13 RENT2H Rent for 2 bed house 0% £91.21 £91.21 3.84% £94.71 £94.71 RENT3F Rent for 3 bed flat 0% £92.01 £92.01 3.84% £95.54 £95.54 RENT3H Rent for 3 bed house 0% £92.50 £92.50 3.84% £96.05 £96.05 RENT4F Rent for 4 bed flat 0% £93.27 £93.27 3.84% £96.85 £96.85 RENT4H Rent for 4 bed house 0% £93.79 £93.79 3.84% £97.39 £97.39 RENT5H Rent for 5 bed house 0% £95.18 £95.18 3.84% £98.83 £98.83 RENT6H Rent for 6 bed house 0% £96.48 £96.48 3.84% £100.18 £100.18 GARGCOUN Garage site Council 0% £3.67 £3.67 3.84% £3.81 £3.81 GARGVAT Garage site with VAT 20% £3.67 £4.40 3.84% £4.57 £5.48 LUPRENT Lockup Council 0% £7.26 £7.26 3.84% £7.54 £7.54 LUPRENTVAT Lockup with VAT 20% £7.26 £8.71 3.84% £9.04 £10.85 HEAT / H9 Heating charge (H9) 0% £15.40 £15.40 5.00% £16.17 £16.17 SHEL / S1 Amenity charge (S1) 0% £11.11 £11.11 5.00% £11.67 £11.67 SHEL / S2 Amenity charge (S2) 0% £11.77 £11.77 5.00% £12.36 £12.36 SHEL / S3 Amenity charge (S3) 0% £12.92 £12.92 5.00% £13.57 £13.57 SHEL / S4 Amenity charge (S4) 0% £13.66 £13.66 5.00% £14.34 £14.34 SHEL / S7 Amenity charge (S7) 0% £16.45 £16.45 5.00% £17.27 £17.27 SHEL / S8 Amenity charge (S8) 0% £17.09 £17.09 5.00% £17.94 £17.94 SHEL / WARD Amenity charge (Ward) 0% £33.82 £33.82 5.00% £35.51 £35.51 TRAV_SITE Traveller site rental charge 0% £105.85 £105.85 0.00% £105.85 £105.85
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Rent Level Options for 2026/2027 The survey will take approximately 4 minutes to complete. This is to be completed by all North Ayrshire Council Tenants only. Introduction North Ayrshire Council consults tenants annually on proposed rent levels for the forthcoming financial year. This is your opportunity to have your say on how much rent you will pay for 2026/27. We remain fully committed to keeping your rent as affordable as possible, while continuing to deliver on our responsibilities as your landlord, your priorities as a tenant, and ensuring high levels of tenant satisfaction. Our rent levels are currently amongst the lowest in Scotland and remain the most affordable social housing option for residents in North Ayrshire.Average rents in North Ayrshire, by landlord, in 2025/26 are: • North Ayrshire Council - £91.16 • Scottish Average: Local Authorities - £94.52 • Cairn Housing Association - £97.43 • Cunninghame Housing Association - £111.19 • Riverside Scotland - £107.60 • Scottish Average: Registered Social Landlords - £111.11 • Scottish Average: all landlords: £102.18 The 2026/27 rent setting consultation period will run from 5th December 2025 to 16 January 2026. We will use your feedback to prepare a report for a meeting of the Council on 11 February 2026, when elected members will consider the housing budget and proposed rent increase for Council tenants for 2026/27. We will write to inform you what your new rent charge for 2026/27 will be, at least four weeks in advance of any changes being implemented in April 2026. If you're experiencing financial difficulties, there is a cost of living support section on the North Ayrshire Council website that you may find useful (https://www.north-ayrshire.gov.uk/cost-of- living). All information provided in this survey will be processed in line with our published Privacy Policy Statement for more information, please refer to our website (https://www.north- ayrshire.gov.uk/privacy-policy). 1) Are you a North Ayrshire Council Tenant o Yes o No Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Challenges facing our Housing Revenue Account (HRA) We are fully committed to keeping rent increases as low and affordable as possible for our tenants. However, our Housing Revenue Account (HRA), the ring-fenced fund which uses the rent you pay to provide all of your housing services has experienced some significant challenges, such as; • rising costs to carry out repairs, maintenance and major investment works, due to higher prices for contractors and materials • borrowing costs to fund future capital projects • rising inflation affecting other running costs • increased housing quality standards • an increase of tenants who are facing financial hardship • additional budget requirements for storm damage, timber and dampness works, fire mitigation works, environmental maintenance, maintenance of non-adopted roads, paths and street lighting. These pressures have been reflected in our 30-year business plan and the proposed rent options for next year. Back Next Ensuring value for money for our tenants We realise these are financially challenging times for our tenants. We have carried out a comprehensive budget review of the HRA and implemented a number of sustainable efficiencies, such as: • changing our approach to gutter cleaning • ensuring tenants are re-charged for works that they are responsible for • making efficiencies in managing empty homes • identifying changes to ensure we maximise the amount of rent and other income we collect These efficiency measures have helped to keep the proposed rent increase for 2026/27 and future years as low as possible and minimise the financial impact on our tenants, while protecting investment in maintenance, energy efficiency projects, refurbishment and new-build Council housing. Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Investment and Improvement Two rent increase options have been developed for your consideration. Both options include investment in key priorities over the life of the 30- year business plan, such as: • £1,249m Improvements to existing properties • £188m Investment to tackle climate change and achieve net-zero • £125m To build 586 homes, refurbish 3 homes and purchase 50 second-hand homes by 2031 • £36m Sheltered Housing Reprovisioning Programme over 5 years • £4m To complete the original £10m Estate Based Regeneration Programme In 2026/27 we plan to complete the following planned capital improvements: • 196 bathrooms • 299 electrical rewires • 15 external wall insulations • 624 heating systems/boilers • 545 kitchens • 139 roofs/re-rendering • 1,038 smoke detectors • 345 solar PV installations • 68 windows Our 10 year programme (2026/27 to 2035/36) includes plans to complete the following planned capital improvements: • 3,680 bathrooms • 3,747 electrical rewires • 200 external wall insulations • 8,648 heating systems/boilers • 7,167 kitchens • 1,624 roofs/re-rendering • 13,271 smoke detectors • 2.965 solar PV installations • 3,455 windows Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 What are the rent level options for 2026/27? The two proposed options are set out below, along with information on what each option will allow us to do. Option 1 Increase rents by 3.84% - an average increase of £3.50 per week • This maintains current service levels, investment in existing homes, and planned development of new build homes Option 2 Increase rents by 4.84% - an average increase of £4.41 per week • As option 1, plus additional £7.5m for expansion of our estate-based regeneration programme. The indicative average rent increase for each of the remaining 28 years of our 30-year plan is currently 3.84%. Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Affordability and weekly rent charges It is important that we recognise the impact of rents and proposed rent increases on tenants' household income. We have to consider affordability to tenants alongside our obligations as a landlord to maintain the quality of your home. The weekly rent charge for 2026/27 for each proposed option, based on property size, would be: Option 1 - Increase rents by 3.84%, an average increase of £3.50 per week • Bedsit flat: £73.37 • Bedsit house: £73.37 • 1-bedroom flat: £92.72 • 1-bedroom house: £93.26 • 2-bedroom flat: £94.13 • 2-bedroom house: £94.71 • 3-bedroom flat: £95.54 • 3-bedroom house: £96.05 • 4-bedroom flat: £96.85 • 4-bedroom house: £97.39 • 5-bedroom house: £98.83 • 6-bedroom house: £100.18 Option 2 - Increase rents by 4.84%, an average increase of £4.41 per week (As option 1, plus additional £7.5m for expansion of our estate-based regeneration programme) • Bedsit flat: £74.08 • Bedsit house: £74.08 • 1-bedroom flat: £93.61 • 1-bedroom house: £94.16 • 2-bedroom flat: £95.04 • 2-bedroom house: £95.62 • 3-bedroom flat: £96.46 • 3-bedroom house: £96.98 • 4-bedroom flat: £97.78 • 4-bedroom house: £98.33 • 5-bedroom house: £99.79 • 6-bedroom house: £101.15 Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Vote for your preferred rent increase option Please choose your preferred option below: Option 1 Increase rents by 3.84% - an average increase of £3.50 per week • This maintains current service levels, investment in existing homes, and planned development of new build homes Option 2 Increase rents by 4.84% - an average increase of £4.41 per week As option 1, plus additional £7.5m for expansion of our estate-based regeneration programme. The indicative average rent increase for each of the remaining 28 years of our 30-year plan is currently 3.84%. 2) What is your preferred rent increase for 2026/27? o Option 1 – Increase rents by 3.84%, an average increase of £3.50 per week o Option 2 - Increase rents by 4.84%, an average increase of £4.41 per week 3) Do you receive financial support for your housing costs, such as Housing Benefit, Universal Credit or Discretionary Housing Payments? o I don’t receive any support and pay all my rent myself o I receive some support and pay part of my rent myself o I receive full support and don’t pay rent 4) When making decisions about the rent you pay, what level of priority do you think should be given to each of the following: high medium low Improving the quality of your home Improving the quality of repairs and maintenance carried out in your home Improving your neighbourhood and the place where you stay Improving the tenancy support services we provide, to help you to remain in your home Improving opportunities for you to get involved in our decision making processes 5) Please share any feedback about the rent options for 2026/2027 in the box below Enter your answer Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Enter the prize draw or request housing support Each tenant who takes part in this consultation has the option to enter a prize draw to win one of six £50 shopping vouchers. You can also tell us if you would like any extra support to help pay your rent or feel like you could benefit from some extra help with your tenancy. 6) Please tick the boxes that apply to you. o I would like to be entered into the prize draw for a £50 shopping voucher o I would like to join the Tenants' Panel o I would like to be involved in our Tenants' Voice (Tenants aged 16-25 Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Please provide your contact details Please leave your details below so that we can contact you if we need to. 7) Name Enter your answer 8) Address Enter your answer 9) Postcode Enter your answer 10) Telephone number Enter your answer 11) Email address (optional) Enter your answer 12) Did you receive support from a Council staff member to complete this survey? o Yes o No 13) Please provide the staff member’s name Enter your answer 14) Please select the staff member's team o Dalry Housing Office o Irvine Housing Office o Kilbirnie Housing Office o Kilwinning Housing Office o Largs Housing Office o Three Towns Housing Office o Common Housing Register Team o Customer Contact Centre o Housing Support Team o Refugee Support Team o Strategy & Development Team o Tenant Participation Team o Money Smart Team Back Next
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RENT CONSULTATION 2026/2027 FORM APPENDIX 4 Almost done… You are about to submit your response. By clicking 'Submit' you give us permission to analyse and include your response in our results. After you click Submit, you will no longer be able to go back and change any of your answers. Assistance with Rent Account All rent enquiries should be discussed with local area housing staff. I have attached the contact details for ease of contacting the relevant office relating to your address. Housing offices Financial Assistance The Money Smart Team directly delivers welfare rights and a debt advice service to Council tenants across North Ayrshire, with the aim of improving the income and living standards of individual tenants and communities. Email: moneysmart@north-ayrshire.gov.ukTelephone: 01294 310000 option 1 Housing Support Information Housing Support aims to prevent tenants from losing their tenancies and alleviate homelessness by helping them to develop the skills they need to manage their own home. Email: housing-info-advice@north-ayrshire.gov.ukTelephone: 01294 314600 Home Contents Insurance North Ayrshire Council insure the structure of your home but the cover does not include what is inside it, such as your furniture and personal belongings. Replacing the contents of your home could prove very expensive. By purchasing Tenants Contents Insurance, this means your personal belongings are insured against events including: • Fire • Theft • Flooding/Escape of Water • Accidental damage (if selected) The Council work with the UK's largest insurer to offer home contents insurance that can be paid in weekly or monthly instalments. Unlike some insurance policies, there are no excesses so you will not have to pay anything in the event of a claim. To apply online please do so via link Home Contents Insurance (north-ayrshire.gov.uk) If you wish more information on Home Contents Insurance, please contact the Home Contents Insurance Team Email: homecontentsinsurance@north-ayrshire.gov.ukTelephone: 01294 324611 Back Submit
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RENT CONSULTATION 2026/2027 - RESULTS APPENDIX 5 Total number of responses: 1,701 Letters issued December 2025: 12,923 Percentage of tenant responses: 13.16% Option 1 Increase rents by 3.84% - an average increase of £3.50 per week • This maintains current service levels, investment in existing homes, and planned development of new build homes Actual responses: 1,280 Percentage of responses: 75.25% Option 2 Increase rents by 4.84% - an average increase of £4.41 per week • As option 1, plus additional £7.5m for expansion of our estate-based regeneration programme. Actual responses: 421 Percentage of responses: 24.75%