In its HRA Business Account plan for 2025/26, the Council sets out its direction for delivering housing-related services over the coming year, placing a continued focus on building new council homes to address the significant need in the city, as well as the importance of maintaining existing homes and neighbourhoods.

Having already delivered 1,819 new homes of all tenures - 1,461 council homes and 358 homes for sale, a further 422 homes are currently being built across 12 sites, with hundreds more in the pipeline.

The Council has recently embarked on a new partnership programme with the Vale of Glamorgan Council and developer Lovell Partnerships on a scheme that will deliver at least 2,260 new homes across the region over the next 10 years - contributing to Cardiff’s overall target of 4,000 new homes for the city, to help tackle the housing emergency.

Meanwhile, more than £33m will be invested in improving existing homes over the coming year, including £2.75m on replacement kitchens and bathrooms and £1.2m on window upgrades.

The Council, along with the 11 stock retaining authorities in Wales, is required to present an acceptable HRA business plan to Welsh Government each year in order that progress towards meeting and/or maintaining the Welsh Housing Quality Standard (WHQS) can be assessed.

Cardiff’s plan, which will be considered by Cabinet at its next meeting on March 20, sets out the challenges the Council faces in achieving new decarbonisation goals set by Welsh Government in the updated social housing standard.

Cabinet will consider a new compliance policy that has been developed to help deliver the requirements of the WHQS 2023 –which places greater emphasis on improving homes’ energy efficiency.  The policy is underpinned by three key principles including putting tenants first, prioritising properties in greatest need of improvement, and affordability – balancing the need to move to zero carbon with the many other pressures and demands facing housing services.

WHQS standards require that all properties should achieve an EPC A rating by March 2034.

However, estimates show that the cost of achieving interim energy efficient targets in 98% of council homes in Cardiff would be in the region of £351m, while an additional £582m would be needed to lift 95% of all properties into an EPC band B rating.

Cabinet Member for Housing and Communities, Cllr Lynda Thorne, said: “Cardiff is proud to be the first Local Authority in Wales to have achieved the previous WHQS standard after its introduction in 2002 but we are concerned about the high costs required to achieve the new standards, particularly around decarbonisation.

"We are committed to our One Planet agenda and to making our homes as energy efficient as possible but decarbonising our homes does present numerous challenges – not least the cost.

“We aim to achieve the requirements as far as is possible, with quick wins to improve as many homes as we can and will continue to work with Welsh Government to understand the significant financial support that will be required to enable the delivery of longer-term, large-scale projects.”

Preventing and addressing homelessness remains a priority in the HRA plan, and it sets out how the Council is working to improve existing supported accommodation schemes through refurbishment work to ensure that individuals and families experiencing homelessness have access to good quality accommodation, while a more permanent solution is found.

And at a time when economic difficulties continue to affect many people, the Council is committed to continuing to support tenants by delivering modern, accessible and inclusive services that meet their needs.

Cabinet Member for Housing and Communities, Cllr Lee Bridgeman, said: “It has never been more important that we continue to provide advice and support to our tenants and listen to their evolving needs.

“Engaging with them remains vital. This new plan sets out strong commitments to provide opportunities for our tenants to get involved in their communities and to ensure that our hubs and libraries serve those communities well.”

Ahead of the March 20 Cabinet meeting, the HRA Business Plan for 2025/26 will be published here: Agenda for Cabinet on Thursday, 20th March, 2025, 2.00 pm : Cardiff Council

The report will be considered by Community & Adult Services Scrutiny Committee on Monday, March 17. The agenda and link to the live webcast for that meeting will be available here  Agenda for Community & Adult Services Scrutiny Committee on Monday, 17th March, 2025, 4.30 pm : Cardiff Council