Our Service Charge Policy outlines the service charge structure for our residents. It aims to provide clarity on how service charges are calculated, the types of charges involved, and the processes for billing and queries.

Here's what you need to know:

What is a service charge?

A service charge is an amount you pay (on top of your rent, if applicable) for shared services in your building or estate. These services can include things like cleaning communal areas, grounds maintenance, or lighting in shared spaces. If your home doesn’t benefit from a service, you won’t be charged for it.

Why do we charge this?

Service charges cover the actual cost of providing these services. This means:
  • Residents only pay for what they receive.
  • There’s no cross-subsidy between homes.
  • It helps keep rents focused on providing quality homes and community services.

Types of service charges:

  • Fixed charges: A set amount for the year. It doesn’t change even if costs go up or down.
  • Variable charges: Based on actual costs. These can change each year depending on what services cost.
    After the year ends, we compare estimated costs to actual costs and adjust if needed.

How are charges shared?

Costs are split fairly between homes that benefit from the service. This can be:
  • Equal shares for all homes in a block or estate.
  • Equal shares for homes that use the service.
  • Or as stated in your occupancy agreement.

Extra costs

  • Sinking fund: Some leases include a fund for big future repairs (like roof replacement).
  • Management fees: A small fee to cover running costs like admin and payment collection.

Value for money

We aim to keep costs reasonable by:
  • Using competitive procurement.
  • Reviewing managing agent costs.
  • Consulting residents when big works are planned.

Communication and notices

  • You’ll get written notice of any changes at least one month before they start.
  • Each year, we send a breakdown of estimated charges and, later, a summary of actual costs.
  • If we plan major works or long-term contracts, we’ll consult you first.

Legal and regulatory compliance

We follow all relevant laws, including the Landlord and Tenant Acts, Building Safety Act, and procurement regulations, to ensure charges are fair and transparent.