What are service charges for?

If you own your council property, the Council will invoice you each year for services provided to your block or estate. These are charges made for the supply of services and maintenance to your block and/or estate.

Leaseholders and freeholders are charged for maintenance and services to their block and estate.  They pay a share of the landlord’s cost according to the rateable value of the property and this is payable under the terms of the lease (or transfer document for freeholders).

In April of each year, you will receive an estimate of the likely charges you will incur for the forthcoming year.  These estimates are based on the last actual charges available and may include an increase.

At the end of the financial year (31 March), the Home Ownership Service obtains information from the various service providers to calculate the actual costs for those services.  The detail provided is then verified so that your charges can be finalised.  This process may take up to six months.

In September of each year you will receive details of these final charges and either an invoice or credit note.  This will reflect the difference between the estimated amount and the actual charge. 

Services included in the service charge

Cleaning and environment

These charges are for the caretaking to the communal areas of your block and estate, the maintenance of the communal grounds and the hire of communal refuse storage facilities.

Concierge and CCTV

These charges include the cost of staff plus the servicing and maintenance of equipment. Some schemes have monitored CCTV cameras only. Concierge schemes may have staff present on an estate who can also control entry to blocks.

Electricity

These charges are for the electricity used by the communal lighting, lifts and any other communal plant.

Heating 

These charges are for the fuel that the communal heating scheme uses to provide heating, and in some cases, hot water to properties.

Equipment servicing

These charges include the servicing and maintenance of communal boilers, lifts, door entry systems, communal fans, water boosters, fire alarms and associated equipment, lightning protection and water tanks.

Ground rent

This is set out in the lease. In some cases, depending on when the lease was taken out, the ground rent is zero. In a lot of cases, and in all new sales, it is £10.

Insurance

This is buildings insurance only and it includes a five per cent insurance tax. This is arranged by the Royal Borough of Greenwich's insurance team.

This doesn't include contents insurance. You'll need to arrange this yourself.

Management fees

Cost to the landlord for calculating and producing service charges. It includes the cost of the schedules, invoices and the cost of collecting service charges.

Repairs

Day-to-day repairs carried out on the block and estate such as broken communal windows, leaking gutter, blocked refuse chutes and so on. Larger building works are managed and billed for separately.

What's not included in the service charge

Leaseholders must also contribute towards any building works carried out to their block or estate. This isn't included in your service charge and is invoiced separately.

Find out more about building works to council housing

Free independent advice on leasehold issues is available from the Leasehold Advisory Service. Their contact details are as follows:

 Fleetbank House
 2-6 Salisbury  Square
 EC4Y 8JX        
Monday to Friday, 9am to 5pm

Telephone: 020 7832 2500 to book a telephone appointment