Appendix 2 - HRA Executive Summaries 2026-31
Perth and Kinross Council · 21 January 2026
Back to Housing and Social Wellbeing Committee — 21 January 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Appendix 2 Date: 14 November 2025 REVENUE BUDGET 2026/31 SERVICE – HOUSING REVENUE ACCOUNT EXECUTIVE SUMMARY Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 1 Increase in Staff Costs The increase in staff costs allows for a pay increase of 3.5% for Single Status and Trades staff for 2026/27 onwards plus the cost of incremental progression. The costs for 2025/26 also includes the cost of the increased level of pay award in 2025/26. Strategic Objective Impacted: Organised to Deliver 575 400 415 430 445 2 Adjustment to Bad & Doubtful Debt Provision The increases relate to annual uplifts required in line with the anticipated increased income levels each year to maintain the provision at 2.6%. Strategic Objective Impacted: Organised to Deliver 0 47 41 40 36 3 Movement in Loan Charges The capital investment programme has been revised to ensure we continue to meet the SHQS obligations arising from the Stock Condition Survey, any future new Scottish Housing Quality Standard and our tenant’s priorities. These commitments alongside an increase in the Council House Stock programme will result in revisions to the profile of Loan Charges arising from the revised prudential borrowing assumptions to fund these works. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 2283 869 792 500 500 4 Responsive Repairs Housing repairs and the delivery of a responsive repairs service continues to be a high priority for our tenants. As a result of the increase in stock levels over the last few years, there is a requirement to increase the responsive repairs budget. This funding will allow the repairs service to continue to deliver a high-quality repair service and continue to maintain high levels of tenant satisfaction. 200 200 0 0 0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 5 External Voids An increase in the external voids budget is required to meet the current level of demand placed on the service and ensure that performance and health and safety standards are maintained. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 300 0 0 0 0 6 Garden Maintenance Contract Increased cost of Garden Maintenance contract Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 5 0 0 0 0 7 Service & Maintenance Costs As a landlord Perth & Kinross Council (PKC) are legally obligated to ensure that servicing and maintenance is carried out to all emergency lighting within the communal areas of the Council’s housing stock and the maintenance of mains fed sprinklers which have been and will continue to be installed our new build housing. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 6 6 6 6 6 8 Schedule of Rates Uplifts Contract price increases for Term Maintenance Contracts, Domestic Gas Contracts and various Service & Maintenance Contracts. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 157 168 177 82 86 9 Increased Energy Costs Increased energy costs as a result of increasing Gas and Electricity prices. Strategic Objective Impacted: Organised to Deliver 30 20 0 0 0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 10 Corporate Recharges Increased recharges in relation to corporate services such as Finance, Human Resources and Legal. Strategic Objective Impacted: Organised to Deliver 80 0 0 0 0 11 Increased Staffing Requirements As a landlord we are responsible for the cyclical servicing and maintenance of many systems and items of equipment in domestic dwellings, multi-storey flats, and our sheltered housing complexes. Our current staffing resource is insufficient to ensure that we are meeting all the requirements and obligations of these servicing and maintenance aspects. In addition to servicing and maintenance staff, we also require additional staff to deal with the EICR contract, planned maintenance, multi-storey strategy and scheduling of repairs. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 69 0 0 0 0 12 Planned Maintenance An increase in the planned maintenance budget to increase contractor capacity to undertake an additional 225 properties per year which enables us to meet the 8-year cycle. In addition to the increase in properties, the additional budget also considers an increase in Rhone maintenance from an 8-year cycle to a 4-year cycle. The benefits of this approach are:- • protecting the fabric of the building and preventing resulting damp and condensation issues • reduction in the need for responsive repairs to leaking gutters and associated timber and masonry work, • as a landlord it would enhance our reputation with our tenants and provide reassurance that their homes are being maintained regularly. Strategic Objective Impacted: Supporting People to Live Independent, Healthy and Active Lives 37 38 38 0 0 13 Internet of Things Project Over the last 2 and a half years, the service has been undertaking a pilot project using sensors to monitor property condition against set parameters, real-time alerts and data are captured and reported providing insights into property health, that importantly enables providers to better allocate resources to support tenants and avoid costly repairs. 49 9 9 9 9
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 This has been very successful and this increase in funding will allow the purchase of sensors for 500 properties per year over the next 3 years. To date there are 620 properties which have these sensors. This pressure will provide funding for the ongoing costs for monitoring the output of the data. Strategic Objective Impacted: Supporting People to Live Independent, Healthy and Active Lives 14 Support Officers This proposal is for a specific staff resource who can work with tenants who have hoarding tendencies. There has been an increase in hoarding across the localities, and these cases are very complex in nature, and we know that people with hoarding tenancies can have deep routed issues often stemming from trauma. Having dedicated staff to deal with these cases, who will use a trauma- informed approach, will support improved outcomes for the tenant they support and help with cases where we currently have access issues for repairs and maintenance or capital works. Strategic Objective Impacted: Supporting People to Live Independent, Healthy and Active Lives 88 0 0 0 0 15 Fire Risk Assessments Remedial Work As a landlord Perth & Kinross Council (PKC) are legally obligated to ensure all its domestic multi storey properties, including common areas of sheltered housing and Greyfriars House, have a valid fire risk assessment. Properties are required to be assessed or assessments reviewed regularly and additionally when there is a change and best practice is to review or renew fire risk assessments every 5 years. This pressure creates a budget for any remedial requirements that require to be carried out following the fire risk assessment. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 86 0 0 0 0 16 Energy Performance Certificates As a landlord Perth & Kinross Council (PKC) are legally obligated to ensure all its domestic properties, have a current Energy Performance Certificate (EPC). The EPC is valid for 10 years but require to be updated as and when any works are carried out in the home. The EPC will inform the works required to ensure that they meet the Scottish Government requirements in relation to Energy Efficiency Standards. Strategic Objective Impacted: Organised to Deliver 75 75 0 0 0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 17 Handyperson Service This proposal is for a dedicated resource for maintaining the garden and other areas within sheltered housing and retirement complexes throughout Perth and Kinross area. This would be for 7 sheltered housing units and 3 retirement sites for maintenance and upkeep of communal garden areas - not of tenants’ own gardens. This would be to keep the areas free from weeds, maintain shrubs, beds and raised beds. Although primarily for working within Older Persons’ Housing, they can also work across all localities supporting areas such as Caretaking and reducing the requirement for using external contractors. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 40 0 0 0 0 18 Gypsy Traveller Engagement Officer A permanent Gypsy Traveller Engagement Officer to liaise with the Gypsy Traveller Community and be a single point of contact in terms of communications etc. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 50 0 0 0 0 19 Think Yes Budget This funding will double the existing budget provision for each locality team to enable them to respond to unique and crisis situations to support tenants without delay. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 30 0 0 0 0 20 Fleet Vehicles Costs of four dedicated fleet vehicles for the Improvements Team to enable the staff to carry out their role more efficiently than using pool vehicles due to the nature of the role and equipment required. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 17 0 0 0 0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 21 Lone Working Module Cost of implementing new lone working module across the service in order to keep our staff safe when lone working. Strategic Objective Impacted: Organised to Deliver 8 0 0 0 0 22 Housing Repairs Out of Hours Service Increased costs to provide the repairs out of hours service. Strategic Objective Impacted: Organised to Deliver 3 0 0 0 0 23 Movement in relation to Contribution to Capital Projects (CFCR) As a result of the net movement between pressures and income/savings options this is the projected movement in CFCR. It is recommended that any surplus (CFCR) is used to fund capital spending, thus reducing the borrowing requirement in the Housing Investment Programme and hence reduce Capital Financing Costs in future years. The level of CFCR available each year will be as follows: 2025/26 - £1,389,033 2026/27 - £1,391,033 2027/28 - £1,382,033 2028/29 - £1,502,033 2029/30 - £1,991,033 2030/31 - £2,309,033 Strategic Objective Impacted: Organised to Deliver 2 (9) 120 489 318 TOTAL 4190 1823 1598 1556 1400
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 Compensating Saving / Budget Flexibility & Impact Analysis Net Saving Staffing Implications 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 2026/27 2027/28 2028/29 2029/30 2030/31 1 Increase in Council House Rents In order to deliver on tenant’s priorities, meet the fixed costs borne by the HRA, and any efficiency savings, a 6.5% rent increase will be required for 2026/27. The proposed rent strategy for the next four years will be set at an indicative rate of 3% for 27/28 and 2.2% for the following three years. This provides a baseline level to highlight the indicative rent increase required to deliver the future capital investment programme and running costs of the HRA. The indicative rate for future years may vary reflecting future priorities identified by tenants. 2026/27 – 6.5% 2027/28 – 3.0% (Anticipated minimum increase) 2028/29 – 2.2% (Anticipated minimum increase) 2029/30 – 2.2% (Anticipated minimum increase) 2030/31 – 2.2% (Anticipated minimum increase) Future provisional rents will be adjusted each year to reflect anticipated levels required to meet the needs of the HRA Business Plan. These updated income figures reflect revised assumptions regarding increases in housing stock, based on the planned progress in 3461 1803 1577 1535 1378 0.0 0.0 0.0 0.0 0.0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 delivering the new build and new supply programmes. There are no increases attributed to Shops & Offices. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: An affordability assessment has been undertaken and evidenced that our rents are affordable to 86% of the population (without housing costs being taken into account). They remain the most affordable social rent in the area and are the 4th lowest local authority rent nationally. Increases will affect all tenants Workforce: None Customer: Tenants will be consulted on the Standard Delivery Plan and proposed levels of rent increase. Equalities / Diversity: No identified equality/diversity issues Outcome and Performance: This will allow Perth & Kinross Council to continue to meet the requirements of the Scottish Quality Housing Standard. Climate Change: No significant impact identified. Strategic Objective Impacted: Supporting People to Live Independent, Healthy and Active Lives 2 Increase in Staff Slippage Target Increase in the staff slippage target to maintain the 5% target due to increase in staff costs. Impact Analysis and Risk Assessment 30 20 21 21 22 0.0 0.0 0.0 0.0 0.0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: The efficiencies identified allow us to maintain rents at an affordable level. Workforce: None Customer: None Equalities / Diversity: No identified equality/diversity issues Outcome and Performance: None Climate Change: No significant impact identified. Strategic Objective Impacted: Organised to Deliver 3 Reduction in Bad Debt Provision Due to improved arrears performance the current level of bad debt provision can be reduced. The saving sees a reduction in bad debt provision from 4% of income to 2.6%. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: The efficiencies identified allow us to maintain rents at an affordable level. Workforce: None Customer: None Equalities / Diversity: No identified equality/diversity issues Outcome and Performance: None Climate Change: No significant impact identified. Strategic Objective Impacted: Organised to Deliver 494 0 0 0 0 0.0 0.0 0.0 0.0 0.0 4 Review of Garden Maintenance Scheme Increase in charges for the Garden Maintenance Scheme to allow for full cost recovery of the 5 0 0 0 0 0.0 0.0 0.0 0.0 0.0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 service to Council tenants who choose to opt into the service. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: The efficiencies identified allow us to maintain rents at an affordable level and Council tenants are not subsidising the cost to tenants who opt into the service. Workforce: None Customer: Increased charges to tenants who choose to opt into the service Equalities / Diversity: No identified equality/diversity issues Outcome and Performance: None Climate Change: No significant impact identified. Strategic Objective Impacted: Organised to Deliver 5 Reduction EICR Budget A saving from the current EICR budget based on the current contract levels and works required. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: The efficiencies identified allow us to maintain rents at an affordable level. Workforce: None Customer: None Equalities / Diversity: No identified equality/diversity issues Outcome and Performance: None Climate Change: No significant impact identified. Strategic Objective Impacted: Creating a Safe and Sustainable Place for Future Generations 200 0 0 0 0 0.0 0.0 0.0 0.0 0.0
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Activity Expenditure Pressure & Impact Analysis Un-Funded Expenditure Pressures 2026/27 £000 2027/28 £000 2028/29 £000 2029/30 £000 2030/31 £000 TOTAL 4190 1823 1598 1556 1400 0.0 0.0 0.0 0.0 0.0