Understanding the Housing Revenue Account
The HRA is a ring fenced budget that the council holds especially for the rent from council tenants. The rent money collected by the council can only be spent on the management and maintenance of tenants' homes.
We are looking at some severe constraints this year, as the cost of living starts to bite and the duty of the council is to ensure that the HRA is properly managed. The proposals for the HRA expenditure are contained within the Council's annual budget consultation for the whole Council.
It is however quite complicated to understand housing finance and the HRA is managed, so we have created a video to explain how the HRA is run and funded. You can also download the transcript of the video. If you need to translate the transcript to another language, copy and paste the text from the transcript, paste into Google Translate and select the language you require.
Watch 'What is the Housing Revenue Account (HRA)?' on YouTube (1 minute, 56 seconds)
Housing Revenue Account Consultation
We want as many tenants involved in the HRA process; to gain perspective about costs, management and challenges for councils.
Every year we review the Housing Revenue Account (HRA) budget. The Council owns over 8,000 homes and the income to the Housing Revenue Account from rents, service charges and other income amounts to £68.2 million per year. This is the budget that pays for the day-to-day running of council homes, repairs, improvements, and new housing.
This consultation is your chance to have a direct say in decisions that affect your home and neighbourhood.
Download and read the full report
What’s changing?
Rent and Service Charges
Each year we review the rent and services charges that apply that need to be charged and as usual, we are proposing increases to rent and service charges next year.
This year we are planning an increase of 4.8% plus up to £2 maximum, for 2026-27 (subject to any cap on rents increases imposed by central government) for social dwelling rents from 1 April 2026, giving an average weekly increase of £8.47 and a revised weekly average social rent of £143.40. We are reviewing service charges and wherever possible, these will reflect the cost of those services.
Investing in homes and services
We are planning new investments (known as “budget bids”) to improve homes, estates, and housing services.
We want to know which improvements matter most to you.
What the Council is planning
New homes
Oxford City Council is continuing to invest in council housing. This includes building new social housing through OX Place
The current HRA programme includes:
- £165 million to buy 448 new affordable homes from OX Place (806 homes in total by 2030)
- £286 million for the Council to directly build 847 affordable homes
Some of these homes will be ready by March 2026, with more planned for future years.
Staffing and management
Some of the key management changes being proposed include:
- More funding for resident involvement activities (£40k)
- Additional support for tenants with complex needs (£30k)
- Three more Community Response Officers (£150k)
- Funding to increase the capacity in HRA Asset Management (c£1.5m)
- ICT staffing investment (£200k)
- Temporary Accommodation management and maintenance (£200k)
Planned maintenance
Over the next four years, we will be carrying out significant improvements to homes:
- Structural works (£5m)
- Door entry upgrades (£1m)
- Major voids (£4m)
- Electrical improvements (£6m)
- Extensions & major adaptions (£5.3m)
- Energy efficiency initiatives (£21m)
- Lift replacement & refurbishment programme (£780k)
- Fire door installations (£1.9m)
- HRA stock condition survey (£480k)
- Renewal of fire alarm panels (£850k)
- Communal areas capital investment works to council homes (£13m)
- External capital investment works to council homes (£41.5m)
- Internal capital investment works to council homes (£34m)
- Tower blocks - fire alarm system replacement (£5m)
Investment
- Acquisition of 150 Temporary Accomodation Units (£32m)
- Re-procurement of Housing & Asset Management System including mobile working solution (£2m)
- Tower block remediation contingency (£12m)
- Tower block water tanks feasibility assessment (£100k)
- Play and seating areas (£60k p.a.)
- Contingency for in-year additional demands or regulatory changes (£0.5m)
- Contingency in the capital programme for urgent additional works identified through the remaining stock condition surveys (£0.5m)
Managing the budget safely
Because the Council borrows money to build new homes and improve existing ones, it keeps close track of financial risks. It looks at things like:
- whether rent income can cover loan interest
- how much debt the HRA has compared to the value of homes
- how much income is available compared to debt
The budget will be tight for the next few years. Rent increases are expected to follow national rules (CPI* + 1%) for the next 10 years, which helps create more borrowing capacity from around 2032.
From 2032 onwards, the Council may be able to invest more in:
- bringing all homes up to the Decent Homes Standard
- zero-carbon improvements
- new social housing
* CPI stands for Consumer Price Index. It measures how much the cost of everyday goods and services changes over time - things like food, clothing, energy bills, and transport. When CPI goes up, it means the cost of living is rising (inflation). The government often uses CPI to set limits on things like rent increases, so changes are linked to real changes in prices.
Rent Policy
A new national Rent Standard will apply from April 2026. Key points include:
- it will last for at least 10 years
- limits on rent increases will be set at CPI + 1%, with small extra increases allowed for homes below “formula rent”
- rents cannot go above formula rent
- affordable rents must be no more than 80% of local market rents
Service charges will also be updated, based on actual costs where possible.
Working balances and future planning
The HRA keeps a financial “buffer” for emergencies, repayments, and future investment. Debt is expected to peak in 2036/37, but the budget becomes more flexible later on.
Risks
The main risks to the HRA include:
- a government decision to cap rent increases
- rising rent arrears
- delays to new homes being built
- unexpected increases in cost
Why do you need to get involved?
Your views help shape how your rent money is spent and what improvements go ahead.
Taking part in this survey is important because it gives you a real say in how council housing is run and improved.
Your views help us make decisions about rents, services, repairs, and new investment - the things that directly affect your home, your comfort, and your community.
By sharing your feedback, you’re helping shape the future of council housing in Oxford; making sure the priorities we set reflect what matters most to the people who live here.
Take Part in the consultation. Closing date is 31 January 2026
Frequently Asked Questions
What can the housing revenue account be spent on?
The Housing Revenue Account (HRA) is the name of the Council account where all the income and expenditure related to the Council's housing is accounted for. At its core, the HRA pays for the management and maintenance of council-owned housing. The HRA can also fund the provision of new council housing.
What is the difference between HRA and general fund?
The HRA is a ringfenced account, which deals with all transactions relating to the Council's function as a housing landlord whilst the General Fund is comprised of all other services. Capital budgets include income and expenditure, which acquire, enhance or improve long-term assets.
What is HRA budget setting?
The HRA Budget Setting Report considers both HRA revenue and all housing capital spending. The level of resource available to invest in housing is dependent upon the income streams in the Housing Revenue Account, the most significant of these being the rental income for the housing stock.
