Service charge FAQs

Depending on your type of home, you might have to pay rent, service charges, sinking fund contributions, management fees, or other charges.

We understand that you might have a few questions about these charges. So, we've put together some frequently asked questions to help.

If you're struggling to pay your bills, we have a bunch of support available. Visit our cost of living webpage to find out more.

• What are service charges?

  Service charges you may pay to cover the cost of services we provide to help look after your home and surrounding area. If you pay service charges this will be set out in your tenancy agreement. 

• How are service charges calculated?

  Service charges are calculated as per your tenancy or lease agreement. 

• How do I pay them?

  If you pay service charges, this will be part of your total rent charge, so you do not need to make a separate payment for these.  

• Are service charges covered by housing benefit and Univeral Credit?

  If you are on a low income, you may be able to get some help towards your housing costs. If this is the case most service charges are covered by housing benefit or Universal Credit.  

  Personal charges such as personal gas, personal electric, personal water, personal heating and administration fees for these services are not covered by Housing Benefit or Universal Credit. 

• Some of my service charges seem more than previous years, why is that?

  We set out service charges based on Customer Price Index (CPI) from September 2022. As a result of inflation and CPI our costs have increased. 

  If you pay Fixed services charges these are set at a fixed rate as per your tenancy agreement.

  If you pay Variable charges the amount you pay changes each year depending on how much your services cost.

• Why might my charges be different to someone who lives near me?

  It may be that you have a different type of tenancy compared to a neighbour which means you may not pay the same service charges.  

• What is a sinking fund?

  As part of your service charges, you may contribute towards a sinking fund. This is used to pay for planned major works or non-cyclical works to your building such as window renewal or external decoration.  

  This fund reduces the chance of you having to pay significant amounts of money when major works are due. If the work costs more than what is available in the sinking fund, you will be asked to pay your share of the balance. 

• What do I do if I think my service charges isn’t correct?

  You’ll have agreed to pay service charges as part of the terms of your tenancy agreement. If you’d like to talk to use about your charges, get in touch.