Cambridge City Council has set out plans to invest significantly in the repair, maintenance and improvement of its tenants’ homes and build 1,300 more new council homes over the next 10 years.
The full proposals for continuing to manage, improve and maintain more than 7,500 council-owned homes, and build even more new council homes in Cambridge through its Housing Revenue Account, are set out in the council’s Budget Setting Report 2026-27.
The proposals include spending £41 million during 2026-2027 for the management, repair, maintenance and improvement of council homes, paid for from housing rents and service charges – a significant ongoing investment to improve the condition and energy-efficiency of council homes for its tenants.
As part of this, £9.8 million would be invested in improving the Energy Performance Certificate (EPC) rating of council homes in the coming year, as part of a £39.3 million programme over the next four years to make more homes warmer, fit for the future and with lower energy bills. This project will complement the council's vision for the city to be net zero carbon by 2030.
The budget for the next financial year would expand the capacity of the council’s in-house repairs and maintenance service, strengthen contract management to secure best value for tenants, and further improve asset management and compliance performance.
It proposes an additional £750,000 per year to address damp, condensation and mould, supporting full compliance with Awaab’s Law.
In addition, there would be significant ongoing investment in the management of homes, including using new technology and additional officer posts to boost the council’s tenancy audit programme, its support for tenants and to allow better management of rent arrears.
The budget setting report sets out the council’s proposals on council rents for the year ahead. For 2026-2027, rents are proposed to rise by 4.8%, in line with the new Rent Standard issued by the national Regulator of Social Housing this year.
This would mean an average increase of £6.14 per week for tenants on the lowest rents (discounted to around 40% of market rents), or £9.44 per week for those on ‘affordable rents’ (discounted to around 60-80% of market rents).
Currently 65% of council tenants receive some form of benefit support, with 55% receiving maximum housing benefit or Universal Credit housing costs. For most of these households, any rent increase will be fully covered from their benefits, meaning that there will be no net financial impact on the household.
The budget setting report also outlines the council’s plans to bid for a Strategic Partnership with the government’s Homes England Housing and Regeneration Agency, in order to secure long-term, flexible funding to support the council’s target to build 1,300 new council homes by 2036, with a further 1,000 new homes for sale.
Last year the council completed its 1,000th new home in Cambridge through its equal development partnership with Hill, the Cambridge Investment Partnership, and has hundreds more currently being developed.
Council homes brought forward through the partnership are designed to CamStandard, the council’s performance-led sustainability framework, ensuring the properties are built with high thermal comfort, excellent air quality and strong climate resilience. Performance targets are modelled and verified using the PHPP (Passivhaus Planning Package) developed by the Passivhaus Institute. This ensures that new homes stay warm and comfortable while using very little energy. Additionally, at least 5% of new council homes are wheelchair adapted and every single home is wheelchair accessible.
Cllr Gerri Bird, Cabinet Member for Housing, said: “Despite significant financial challenges as a result of increasing regulation, cost inflation and high interest rates, the council remains ambitious and committed to investing in our existing council homes so that all tenants can benefit from improvements – and in helping tackling the wider housing crisis by building new, modern energy-efficient council homes and homes for private sale.
“Increasing rents is always a difficult decision, and we are mindful of the financial pressures facing our tenants. However, it is necessary so we can continue to invest in high quality housing within the city. We will continue to provide financial and budgeting advice to anyone who needs it and will work with tenants to ensure they are claiming all the financial assistance they are entitled to.”
Cambridge City Council’s proposed budget setting report for 2026-2027 confirms the council has funds to protect and enhance its services for residents. A previously forecast overspend of £11.5 million by 2030-2031 has been reduced to just £1.5 million, out of an annual council spend of around £80 million. The full budget proposals, including those for the Housing Revenue Account, will be considered at a meeting of the Council on 26 February.
