Service charges

You will be charged for the works, utilities and services we provide to your block and/or estate.

 

What service charges cover

Service charges cover:

• management costs
• building insurance (leaseholders and shared owners only)
• electricity and gas  (where applicable)
• heating standing charge (where applicable)
• cleaning and grounds maintenance
• repairs and maintenance
• concierge (where applicable)
• money towards a reserve fund to pay for any future major works (where applicable)
• ground rent (where applicable)

How service charges are calculated

Service charges are calculated for the financial year. The financial year is from 1 April to 31 March.

Service charges are divided between all properties in a block/estate. 

We send out service charge bills twice a year.

In March 2025, we sent out estimated bills for the upcoming financial year (1 April 2025 to 31 March 2026). These are based on the estimated costs of providing services to blocks and/or estates that we manage.

Before the end of September 2025, we will send out actual bills for the previous financial year (1 April 2024 to 31 March 2025). These will be based on the actual costs of providing services to blocks and/or estates.

Read more about how your service charges are calculated.

Service charge increases for 2025/2026

The 2025/2026 estimated charges have gone up compared to the previous year in some areas. In this section you can read about the increases and the reasons for them.

Management charge 

The management charge covers the costs of running the various teams that support homeowners. This includes staffing costs.

The estimated management costs have gone up by 6.9% compared to last year.

Costs have gone up because:

• staff salaries have gone up
• we have created new teams in Homeownership Services to speed up response times to homeowner enquiries

The management charge that each homeowner pays depends on:

• whether the property is leasehold or freehold
• whether the property is on an estate or a street

Service	Rechargeable costs	Cost per leaseholder or shared owner property on estates	Cost per freeholder property on estates	Cost per leaseholder or shared owner property not on estates (on-street properties)
Neighbourhood Contact Centre	£193,410.00	£22.37	£5.71	£13.42
Anti-Social Behaviour	£406,020.00	£46.96	£11.97	£28.18
Resident Participation	£117,144.00	£13.55	£3.45	£8.13
Resident Safety Team	£311,796.00	£36.06	£9.19	£21.64
Homeownership Services	£1,710,411.40	£197.82	£50.43	£118.69
Housing Management	£593,496.00	£68.64	£17.50	£41.19
Total estimated management charge for 2025/26	£3,332,277.40	£385.41	£98.24	£231.24

Homeowner properties make up 30% of all properties that we manage.

For each service that supports homeowners, the management charge covers up to 30% of their costs.

The exception to this is the Homeownership Services team. For this team, the management charge covers 100% of their costs (except costs that relate to major works and Right to Buy).

In this table you can find out what percentage of each service’s costs are covered by the management charge. 

 

Service	Percentage of total costs covered by the management charge
Neighbourhood Contact Centre	18%
Anti-Social Behaviour	30%
Resident Participation	18%
Resident Safety Team	18%
Homeownership Services	100%
Housing Management	18%

Building insurance

Until 1 April 2025, building insurance costs were based on the number of bedrooms in a property. 

However, the Financial Conduct Authority (FCA) has brought in new rules that mean we have to change the way we calculate building insurance costs. This is likely to affect how much you pay.   

This is not a decision that we have any influence over or can change.

We will send you more information about this change by early May 2025, together with your insurance schedule for the period 1 April 2025 to 31 March 2026.

You can read more about the change to building insurance regulations on the FCA website.

Electricity and gas

The estimated service charges for electricity and gas have not changed from last year.

The charge covers electricity and gas to power:

• lighting 
• lifts
• door entry systems
• electric gates
• heating for properties connected to the communal heat network

Heating standing charge

The estimated heating standing charges have gone up by 10% compared to last year. This is because the heating standing charge will now include the cost of heat loss between the energy centre which generates the energy and communal parts of the building.

The heating standing charge applies to blocks with a communal heating/hot water system with pre-paid meters installed in the individual properties. 

The charge covers:

• the cost of heat loss 
• transaction fees charged by heat metering and billing companies
• ‘standing charges’ for gas and electricity at the energy centres

Cleaning

The estimated cleaning charges have gone up by 11% compared to last year.

This is because:

• staff salaries have gone up
• the costs for 2024/2025 were underestimated by a significant amount

Cleaning charges cover the cost of cleaning all internal and external shared areas of a block or estate.

Grounds maintenance 

The estimated grounds maintenance charges have gone up by 9% compared to last year.

This is because:

• staff salaries have gone up
• there are now more estates that we manage

Grounds maintenance charges cover gardening and grounds maintenance services on estates including:

• grass cutting
• trimming and edging
• planting
• inspecting trees
• maintaining hedges and shrub beds.

Repairs

The estimated repairs charges have gone up by 3.1% compared to last year.

Repairs charges cover repairing and maintaining the internal and external shared areas and services in blocks and on estates, such as:

• lifts
• door entry systems
• footpaths
• boiler houses
• CCTV 

Estimated repairs charges are based on the average actual amount homeowners have paid over the previous 4 years (except heating maintenance which is based on the previous 2 years). This amount then has an increase applied to reflect the cost of any building works for the year. This year the increase is 3.1% and is based on information from the Building Cost Information Service which is an organisation that predicts future prices.

So, for individual properties, the estimated 2025/2026 repair charges may be higher or lower than last year, depending on the repair history of your property. 

Concierge

The concierge charge covers concierges who:

• control access to a building and ensure security
• report emergency repairs
• assist residents who may have difficulty accessing the building
• report any faults in communal areas
• monitor CCTV

The estimated concierge charges for 2025/26 include a reduction for the period 1 April 2025 to 3 August 2025.  

We are currently looking for a new concierge provider to start from 4 August 2025.  We will write to leaseholders and shared owners living in buildings with a concierge service to give their feedback once we have a shortlist of providers. 

Homeownership services guide

See the homeownership services guide (PDF: 2MB).

Some service charges result in costs greater than £250 and are invoiced separately. These are referred to as major works.

Pay your service charge

Pay your service charge

If you have a query about your bill (for example, you think it has been miscalculated or you have been charged for a service you have not received) contact our Service Charge Accounts Team. We will look at your account and if we can see that you have been charged incorrectly we will make arrangements for any necessary adjustments. If you are not happy with the outcome of our investigation, you can make a formal complaint.

Check your balance by phone

You can check your balance and most recent transactions, by calling 020 8356 2299 (9am-5pm). You’ll need to have your payment reference to hand. Payment references are 10 digits and can be found on letters you will have received from us.

Complaining about your lease and service charges

As a leaseholder, you can apply to the First Tier Tribunal if you dispute matters such as service charges, extending your lease, buying the freehold and the management of your building. The tribunal is independent and can decide if a charge is unreasonable, or if changes to the lease are fair.

The Leasehold Advisory Service can provide free and independent advice on the law affecting residential leasehold properties. Whether you are a leaseholder or freeholder, you can get advice on service charges or extending the lease.

If you are a shared owner, the level and frequency of rent increases should be detailed in your lease agreement.