Service charges for 2023-2024
Please note: this information only applies to you if you’re a shared owner, a leaseholder, or a freeholder and you pay service charges. Your service charge covers the cost of providing and maintaining shared areas and services, such as buildings insurance.
If you are not sure what type of tenancy you have, you can find the information in the my.account online customer portal, or on the letter you received in February this year, confirming your rent and service charges for the coming year.
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If you pay a variable service charge, this information is for you
If you usually pay your service charges in advance:
When we write to you in February, we estimate the service charge total for the year. We base this on the previous year’s costs and what’s happening in the market, for example, the increase in the cost of materials for repairs and typical energy usage. It gives us a very good indicator of what you will pay, unless unexpected major works are needed. If that happens, we’ll consult with you to manage those costs.
In February 2023, we confirmed the service charges that you would pay from the beginning of April 2023 until the end of March 2024.
In the next few weeks, you’ll receive a statement that confirms your actual service charges for April 2023 to March 2024, and a reminder of what you have already paid.
At the end of March this year, we received all our costs for the previous 12 months. We then know exactly how much a full year of service charges were. Between March and late summer we ‘reconcile’ our spending – we work out your charges and produce an ‘actual final account’.
If you have paid more than the new total, we will add a credit to your account.
If you have paid less than the new total, we will debit your account. We understand this might be difficult. Depending on how you usually pay, your statement letter will tell you how your debit will be managed. Charges over £100 will be payable over several months to make these easier to manage.
The accounts are then independently reviewed by external auditors.
If you usually pay your service charges in arrears:
Some customers pay service charges annually, in arrears. If this applies to you, you will receive a letter from us in September confirming your service charges for the year April 2023 to March 2024. Your payment due date will be confirmed in your letter.
If you have any concerns about paying your service charges, please speak with our Money Advice Team who can review your financial situation and see what support might be available.