What are service charges and why do I have to pay them?

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Some customers pay service charges for the property they live in. A service charge is a cost for a service provided to your home that is shared with other properties in your block or on your estate. In some cases, service charges can be personal to you.

Service charges and their costs are unique to your block or estate. Each block or estate will have services that are necessary to maintain your property and/or any communal areas.

They can include — but are not limited to — costs associated with gardening, cleaning, and lighting for the areas you share with your neighbours. In some cases, service charges can cover communal gas, electric, or water charges if you're on a communal meter.

For customers living in properties let at social rent rates, service charges are those services/costs listed within your Tenancy Agreement and are not covered by your rent payment.

Some houses or flats with services won't have a separate service charge listed on the annual rent review letter. This applies if your property is let at affordable rent, intermediate rent, or market rent rates, as your rent includes the cost of any services you receive.

This page includes answers to some of the most frequently-asked questions about service charges. If you're not sure — please get in touch. We're here to help.

If you're struggling to pay your rent or service charges, please remember that we're here to help. You can tap here for more information and to see contact details for our dedicated Money Advice Team.

How do you work out my service charge?

Our homes have both fixed and variable service charges. Your Tenancy Agreement will explain which ones you have.

Fixed service charge:

This charge is fixed at the start of the year, based on an estimate of the service costs.  

If the actual cost of the service at the end of the year is higher or lower than the estimate, the charge cannot be changed. However, the charge may be changed the following year to ensure that the full cost of the service is recovered from customers.

Variable service charge:

These are based on the actual cost of providing the service or services and the cost can go up and down accordingly. The service charge budget is based on an estimate of the cost of services we’ll provide that year. We prepare the budgets carefully to make sure that they are realistic and reasonable.

Up to six months after the end of the financial year, you'll receive an annual statement so you can see how much we have collected (income) and how it’s been spent (expenditure).

Any underspend or overspend will be applied to the next financial year’s costs, which means any difference will either increase or reduce your charges for the following year.

How will I know what my service charge is?

In line with your Tenancy Agreement, we'll write to you and provide advanced notice of change in your service charge. For most customers, this will be by the end of February each year, ready for the charge to start in April.

For customers with an April charge and a variable service charge, we'll write to you with a statement of account within six months of the year end (April to September).

Here's an example of an agreement where the charge runs from the Period April 2026 to March 2027:

Fixed service charge:

We'll write to you by the end of February 2026 with your charge for the year to start from April 2026.

Variable service charge:

We'll write to you by the end of February 2026 with your budget to start from April 2026. The year will run until March 2027, at which point we'll start to finalise your accounts. These accounts will be issued to you by the end of September 2027.

The end of year accounts will state the total amount of underspend or overspend against the budget. This underspend or overspend will then be applied as a charge to your next budget, which you'd receive by the end of February 2028.

What does my service charge cover?

We provide a wide range of extra services which are above the standard rental of your home. The services we provide can be different depending on where you live and the local facilities available.

Not everyone receives these services as it might not be possible to provide them in your area. Other services are necessary to keep your block or estate well maintained and safe. 

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

If you receive Housing Benefit or Universal Credit, it will cover the communal charges above.

The service charges you'll pay will depend on where you live and the services you receive. Your Tenancy Agreement will state which services you receive. Your total service charge payable is included in your rent increase notice.

There are some services that may be personal to you, such as the three examples below:

Please note that if you receive Housing Benefit or Universal Credit, it will not cover these charges.

You can tap here to see our online tips to help you save on your household bills.

What should I do if I'm finding it hard to pay?

If you're struggling to pay your rent or service charge, please contact us as soon as you can. Our Money Advice Team can:

  • Find the right payment method
  • Set up affordable repayment plans
  • Check that you're claiming all the benefits you're entitled to, even if you're working
  • Support you with any other money-related matters

You can tap here for further details on our Money Advice Team and to see their contact details.

What if I don't pay my service charge?

Any service charges are part of your tenancy and treated in the same way as rent, meaning they'll be subject to the same recovery action as rent arrears. 

Please remember that we're here to help if you need us. If you're struggling to pay your rent or service charge, please contact us as soon as you can.

Our Money Advice Team can:

  • Find the right payment method
  • Set up affordable repayment plans
  • Check that you're claiming all the benefits you're entitled to, even if you're working
  • Support you with any other money-related matters

You can tap here for further details on our Money Advice Team and to see their contact details.