All you need to know about service charges 

Many of our residents pay a service charge for the maintenance of their neighbourhood. We have two types of service charges:  

  • a variable service charge 
  • a fixed service charge.  

The way we calculate your charges depends on the type of service charge you pay. 

  • Variable service charges

    A variable service charge is where you pay for the actual cost of the services you receive on a yearly basis.  

    We estimate your service charge based on the costs from the previous year. We factor in any changes to services, contract costs, VAT and inflation or any planned communal work coming up.  

    At the end of the financial year, we will check the actual service charge spent and compare it with the estimated charges you’ve paid during the year. 

    You can find more information in our variable service charges explained guide.  

  • Fixed service charges

    A fixed service charge is where we calculate what the estimated cost of maintaining your neighbourhood and set the service charge for that area. In the February of each year, we’ll let you know of your service charge costs for the year ahead.  

What makes up my service charge? 

The costs of the services you receive such as: 

  • Cleaning and caretaking: cleaning and maintaining shared areas like halls, stairs, and rubbish chutes
  • Grounds maintenance: tasks like mowing the grass, weeding and litter picking.
  • Door entry system: costs for maintaining and repairing the entry phone systems in buildings
  • Management or admin fee: a flat fee to cover staff costs and overheads for preparing service charge estimates and accounts
  • Lighting: costs for lighting in shared communal areas, including replacing lightbulbs
  • Water: water rates for a scheme shared to all customers
  • Lifts: maintenance and repairs for lifts in the building. This varies depending on the services you receive.  

More information about the exact service charges you pay for can be found in your annual rent and service charge review letter, sent each February. 

Frequently asked questions 

  • What do I do if I have a question about my service charge?

    Get in touch – email help@wkha.org.uk or call 01732 749400.  

  • Can my service charge be covered by Housing Benefit or Universal Credit?

    Some charges can be covered by Housing Benefit or Universal Credit and you should contact your local council straight away if you believe you are eligible to receive financial support. 

  • What can I do if I think the charges are unreasonable?

    We always aim to provide a service which meets the needs of our customers and offers value for money. However, if you feel we’re not providing you with the service you expect, please contact us. We’ll investigate your query and get back to you. 

  • What happens if I am dissatisfied with your response?

    If you’re dissatisfied with our response, you may have the right to appeal to the First-tier Tribunal (Property Chamber) which will determine if the service charge is reasonable. To do this, you’ll need to complete an application form and return it to the appropriate regional Tribunal office. Please note that you will need to pay a fee to apply. You can find more information on this process at lease-advice.org  

  • Why does my service charge change from year to year?

    Your service charges may change to reflect the actual costs of providing services — such as building insurance, materials, and utilities. We also regularly review contributions to Provisions (also known as Sinking Funds), which may be adjusted to ensure there’s enough funding for future planned or major works. 

  • I own my house, why am I paying a service charge?

    If your freehold home is on an estate we own and maintain, you’ll pay service charges to cover upkeep of shared areas, like grounds maintenance. 

    If you live in a shared ownership home, your lease requires us to provide buildings insurance, which we currently collect through your monthly service charge. Once you own your home outright, you’ll become the freeholder and take on responsibility for arranging your own buildings insurance. 

  • Why do I pay into a Provision (Sinking Funds) if I pay service charges?

    A Future Repair Fund is not used for day-to-day maintenance of your building or estate. It's a savings fund which is set aside for one-off works, such as roof repairs, redecoration or communal window replacement.