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Service charges cover the costs of services provided outside each home.
Service charges cover things like the cost of grounds maintenance for land that’s accessible by several customers or for fire alarm testing in the hallway of a block of flats. Costs are divided between the customers who benefit from the services. We don’t make any profit from our service charges.
We aim for all our service charges to be cost reflective, fair and value for money.
If you pay a service charge, then each year you’ll receive a surplus/deficit statement. This will show you the amount we thought we’d spend and the amount we actually spent on delivering these services.
Example surplus/deficit statement
See what our surplus/deficit statement look like and learn more about what each section means
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Last Updated: September 2025
We use ‘variable service charges’. This means we charge an estimated amount and then adjust the amount we charge in the following year once we know how much we’ve spent.
If we end up collecting more than we’ve spent this is called a ‘surplus’ or an underspend. This means we’ll be able to reduce the amount we charge you in a future year.
Where we’ve collected less than we spent during the year, this is called a ‘deficit’ or an overspend and means that we’ll have to collect this amount on top of the usual costs for the year ahead.
We don’t refund customers directly. Any surplus/credit will go back into the pot to reduce the charge for the year ahead.
We set our charges to run in line with rent increases which mostly happen in April each year.
We’ll write to you with at least a month’s notice to let you know what your new service charges will be.
Some service charges are eligible to be covered by Housing Benefit and Universal Credit but others aren’t.
If you have any questions about your service charges please get in touch.
Here’s a list of some of the things your service charges may pay for:
This is the cost of maintaining any communal or shared landscaped areas. It can vary depending on how labour intensive your garden area is. For example, grassed areas would need cutting more in the growing season whereas a shrub bed would require less frequent visits. It can also cover the costs of general gardening, one-off gardening/pruning, gritting, litter picking etc.
Individual or private gardens aren’t covered by service charges as they don’t receive a grounds maintenance service.
Cleaning of communal or shared areas includes corridors, entrance halls, staircases, communal lounges etc. It also covers the cost of cleaning bin stores and any refuse or waste collection that’s not part of the service provided by your local council.
This covers the cost of cleaning windows in communal or shared areas. Sometimes it also includes cleaning windows of individual apartments where customers can’t clean them safely – these are often above ground floor level.
This can include fly tipping, additional litter picking and carpet cleaning.
This could include salaries for any cleaner, caretaker or warden. It also covers some office costs such as the office telephone, and cleaning and caretaker equipment.
This covers the hire, servicing and repairs to washing machines and/or tumble driers in communal or shared areas.
The cost of maintaining, monitoring and repairing equipment, and obtaining CCTV images, when required.
This covers the supply of electricity for communal or shared areas, which might include things like internal and external lighting, lifts, alarm systems etc.
Sometimes there’s a communal or shared water supply for cleaners to use or for watering shared gardens.
This covers any repairs we carry out to the communal or shared areas.
This covers the repairs and maintenance of any gate entry systems.
This covers regular maintenance inspections of lifts, as well as the cost of arranging health and safety upgrades and repairs. If your lift has an emergency telephone system this will also be covered here.
This includes annual maintenance checks to smoke detectors, fire alarms systems and emergency lighting.
This covers anything else we need to action to comply with health and safety requirements. This includes things like preparing fire risk assessments, arranging legionella tests, check water systems etc.
This covers the testing of communal or shared electric appliances, as well as appliances used by staff to maintain communal or shared areas – this includes things like laundry facilities, vacuum cleaner and garden equipment.
Large items such as door entry systems, communal or shared furnishings or TV aerials need to be replaced from time to time. To plan for this, and to avoid charging you the costs all at once, we collect regular amounts as part of the service charge which are added to a sinking fund linked to where you live.
This covers the admin costs for managing the service charges and all related processes. This includes consultations to ensure we comply with legislation, notices and statements etc.
You may be charged a management fee if another organisation provides services. This cost will cover the services themselves and any related expenses for that organisation.
Here are some frequently asked questions from customers about service charges:
Let us know. Sometimes you may be unhappy with the quality of the services being provided, and we can look into this for you. If you’re unhappy with the charge itself, we can check it’s right. If it is and you’re still unhappy you can appeal to the First Tier Tribunal.
Yes we can if there’s a clause in your tenancy agreement or lease. We also have to consult with you in the right way.
Get in touch with us. We have a ‘Money Matters’ team who may be able to help and advise you with things such as claiming benefits, maximising your income or signposting you for specialist debt advice.