Calculating your service charges

Your service charges are called ‘variable’ service charges. The expected cost of providing the service is split equally between the properties receiving the service on the estate or in the scheme or block.

What is a variable service charge?

A variable service charge is based on the actual cost of providing the service or services and can go up or down accordingly. Any overspend or underspend will be carried over to the next financial year once we verify the charges from the last financial year.

How are service charges calculated?

Service charges are estimated at the beginning of each financial year based on the cost of our contracts and estimated spend on services, such as electricity. Service charge budgets are prepared carefully to make sure that they are realistic and reasonable.

We send you a summary of our expenditure six months after the end of the financial period, which  shows you if there is an over or under payment. Any difference will either increase or reduce your following year's charges.

What is included within the service charges?

We provide a wide range of extra services which are above the standard rental of your home. The services we provide differ depending on where you live and the local facilities available. Not everyone receives these services as it’s not always possible to provide them in your area. Here are a few examples of the services that may be included in your service charge:

  • Caretaking

  • Cleaning and window cleaning

  • Lift maintenance

  • Door entry maintenance

  • Gardening of communal areas

  • Lighting in communal areas

  • TV and digital aerials

  • CCTV

  • Fire safety protection

  • Management fee.

Housing benefit covers these communal charges.

There are some services that may be personal to you, such as:

  • Personal energy costs, such as electricity and gas

  • Personal water rates

  • Emergency Link line services.

Housing benefit will NOT cover these charges.

The service charges you pay will depend on where you live and the services you receive. Your tenancy agreement states which services you receive. Your total service charge payable is detailed in your rent increase notice.