Cabinet will be asked to approve an ambitious new plan to reverse trends of declining housing stock and deliver much-needed homes in the city when it meets on 7 January 2026.

The updated Housing Revenue Account (HRA) Business Plan outlines a long-term commitment to deliver 100 new homes a year while ensuring existing properties are maintained to the highest standards.

A combination of new construction and strategic acquisitions will deliver an increase of 3,000 homes over the plan’s 30-year duration - representing a 24% boost in housing stock. This expansion is designed to provide stable, modern homes for the thousands of families on the city’s waiting lists.

To make this investment possible, the Council is proposing a 4.8% rent increase for the 2026/27 financial year. By gradually bringing rents in line with Government standards, the Council can generate the vital revenue needed to build more properties. Even with this adjustment, Derby’s council rents remain among the most affordable, currently at 57% of average market rent.

Councillor Shiraz Khan, Cabinet Member for Housing, Strategic Planning and Regulatory Services, said:

We are acutely aware that the cost-of-living crisis continues to place a heavy burden on many of our residents and families across Derby. No one enjoys proposing rent increases, and we do not take this decision lightly. However, this is a necessary step to ensure the long-term sustainability of our housing services.

At the heart of this plan is the Council’s commitment to being a high-quality, responsible landlord. The revenue generated by these changes will be reinvested directly back into the city’s homes, ensuring that every tenant lives in a safe, warm, and comfortable environment.

The Council is working to meet mandatory requirements for the city’s housing stock, including reaching an EPC C rating by 2030 and a goal for the city to be net zero by 2035.

Rents form a key part of the funding for these improvements, alongside recent national reforms that allow the Council to benefit from retaining and reinvesting 100% of "Right to Buy" receipts. By using these flexibilities, the Council can make the most of all available resources - including developer contributions and future Government grants - to increase the number of homes across the city.

You can watch the next Cabinet meeting on 7 January on the Council’s YouTube channel.