Changing our approach to service charges

Changing our approach to service charges

In 2023 our approach to service charges was reviewed by HQN (Housing Quality Network) an independent consultancy. Taking account of their recommendations to make the service charges fair and reflect the work undertaken, from 1 April 2025 we are proposing to change our approach to charging for some of these services from a pooled charge to a proportional charge.

Current approach – pooled charges

Along with the rent you pay for your home you may also have charges for additional services, these can relate the cleaning of communal areas outside your home, maintenance of gardens, servicing of lifts or communal TV aerials for example.

At present the cleaning of communal areas and maintenance of gardens is calculated as a ‘pooled’ charge. This means the total cost of maintaining all communal gardens or cleaning all communal area externally or internally is divided equally between all the homes receiving this service. All customers pay the same garden maintenance or cleaning charge regardless of the size of their communal areas or the extent of the work undertaken.

New approach – proportional charges

So that the proportional charges can be accurately calculated to cover the actual costs, we have been surveying communal spaces to measure them and calculate the time it takes to maintain them. We have also identified when items will need replacing so that we can set the right charge and plan effectively to replace them.

Moving to proportional charging will mean that customers pay a service charge which reflects the size and extent of their communal spaces and the work carried out to maintain them. For some customers it will mean a decrease in the service charge and for some customers it will result in an increase.

Where there are significant increases in charges, we will apply the increase over a longer period of time for existing customers. We will also provide support to customers via the Money Matters team to make sure you are accessing any benefits or income you may be entitled to.

We will improve the information we send to make sure you understand exactly what your service charge covers.

Tell us what you think and get involved

From 7 October if you pay a service charge you will receive a letter explaining the impact of the changes in our approach.

Due to this change we want to consult you to make sure these charges are introduced fairly, and you can raise any concerns and discuss the standard of services you receive.

Letters will be sent to all customers affected by the changes, showing their new charges for Grounds Maintenance, Communal Cleaning and FRAs. The letter will include a leaflet describing the service charges and include a map of the scheme to show what areas require grounds maintenance.

These service charges are eligible for Housing Benefit and Universal Credit, so many customers will not experience a change in what they pay. However, we understand that for some, these changes may lead to a noticeable increase and we will work together to support those affected

There will be a dedicated email address for any feedback, and drop-in sessions will be provided in venues close to affected schemes, so that customers can speak directly with staff.