Your service charge estimate is a calculation of how much we think we’re going to spend during the upcoming year based on the services you receive.
The service charge annual cycle
Service charge estimates are sent out by the end of February each year. Actual spend statements for the previous year are sent out by the end of September.
Remember, payment of your rent and service charge is a priority - please read more on our Paying on time page.
Service charge obligations
If you receive any service to any part of your property, you will have to pay service charges. Your lease or tenancy agreement will set out your service charge obligations in terms of what you must pay for and whether the service charges are fixed or variable.
Fixed service charges are based on the service offered. Customers with fixed service charges will only receive an estimate each year. Variable service charges are changed according to the actual costs.
Your estimate is a calculation of how much we think we’re going to spend during the upcoming year based on the services you receive. Whilst some contract values are fixed, other costs are variable. For example, we do not know how much we might spend on bulk rubbish removal. Therefore, we ask you to pay an estimated charge throughout the year.
Following the end of the financial year, we add up how much we’ve spent. During the year, we may have charged you more (surplus) or less (deficit) than we spent.
For customers with variable service charges, we will then send you a service charge statement with the actual costs.
Homeowners are expected to pay any deficit once they’ve received their statement or can have a refund for any surplus.
If you are a tenant, any difference is rolled into your estimate for the following year so if we have charged you less than we spent, we recover that by increasing your charges the following year. If we charged you more than we spent, we’ll reduce your charges for the next year.
For customers on fixed service charges, we can only charge what we budgeted, so you will not receive a statement. If you see an increase in your service charges the following year, it is likely that we spent more than anticipated during the previous year and have increased our budget accordingly.
Most answers to service charges queries can be found on our approach to service charges or our questions and answers page, but if you have a specific question our Customer Service Charge team is on hand to investigate and help you: