Servicing - Intelligent Electrics

Our spend of servicing of fire alarms, emergency lighting and door entry systems has increased by over £100,000 this year as we have to complete a greater number of service visits and also to a higher number of blocks.  Repairs costs have also risen way above inflation as labour and material costs continue to increase.

Servicing - White Goods & Laundry Equipment

This year we have had to increase these costs by almost 300% as the number of repairs and callouts during last year was substantially higher than we had previous estimated.

Servicing - Alarm Equipment

This service is currently under review by colleagues in Adult Services, so we have only increased this charge by an inflationary amount.

Servicing - Fire Fighting Equipment

Cost have been increases slightly in anticipation of increased costs next year as we start to tender for a new contractor.

Fire Panel Testing (Weekly)

No charges

Water Management

These costs have increased generally in line with inflation. At some locations we have had to complete substantial water management works, but we have decided not to pass these one-off costs to residents in service charges.

Fire Risk Assessments & Safety Inspections

Our spend on this service has increased by around 10% this year. This is because as a landlord we are now required to complete fire risk assessments to every block that we own, and not just those with communal spaces that the regulations previously required.

Regulatory changes also mean we must now inspect fire doors on a quarterly basis which means we have a greater cost.

This service charge is administered as a “reserve fund” which means that since April 2024 everything we have collected from tenants and leaseholders has been placed in a holding account and will be used to pay for the fire risk assessments and other inspections as and when we incur costs.

A new contractor to complete fire risk assessments as recently been awarded the contract, so we aim to get every block inspected over the next 18-24 months.

Lift Servicing & Mechanical Inspection

We have reduced our spend on lifts this year after receiving confirmation that 2 blocks do not have a lift, so some residents have seen this charge stop from April 2026.

Fall and Lightening Protection

This is a small budget that has increased slightly, but only because five of our newly built blocks of flat providing high quality social housing for rent have these systems fitted to their roofs.

Television Aerial Systems

Estimates have been slightly reduced as we completed less repairs last year than we had estimated.

Ventilation, Extraction & Aircon Systems

Our estimates have increased by over £20,000 this year as more of our properties have automatic opening vents which work in the event of a fire.  This equipment is also installed in all of our newly built blocks of flats.

Building Security - CCTV, Alarms & Monitoring

Only a small increase to mirror inflation.

Sinking Fund - Roof & Rainwater Goods

No charges

Sinking Fund - Windows & Doors

No charges

Sinking Fund - Door Entry & PAC Systems

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - Fire Alarm Systems

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - Emergency Lighting 

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - External Decorations

No charges

Sinking Fund - Internal Decorations

After receiving external legal advice, we have started new charges to 25 sheltered housing schemes for the decoration of common rooms, communal kitchens and laundries

Sinking Fund - Furnishings in Common Areas

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - Passenger Lifts

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - Barriers, Gates & Boundaries

No charges

Sinking Fund - Warden Call Alarm Equipment

No change to last year’s charges.

Sinking Fund - Security & CCTV Equipment

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - Water Tanks & Filtration Equipment

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - White Goods & Laundry Equipment

No change to last year’s charges.

Sinking Fund - Fire Fighting Equipment

We have uplifted contributions by 1.7% for 2025-2026 and 3.8% for 2026-2027

Sinking Fund - External Structures e.g. Balconies

No charges

Sinking Fund - Play Equipment

No charges

Sinking Fund - IT Equipment & Internet

No charges

Sinking Fund - Television Systems

Contributions to this sinking fund have increased by almost 100%. This is because when we reviewed our expenditure for the 2024-2025 year it showed us that the actual cost of replacing these systems was much higher than we had originally thought. However, in reviewing the estimated contributions for 2026-2027 the results were felt to be too high, so each contribution has been reduced by 40%.

Reserve Fund - Tree Maintenance

Some residents will see this as a new charge for this year. Where we have a number of trees which will need on going work to maintain them, we have introduced a service charge to cover the cost of the works that will be carried out for this. This charge only applies to one scheme.

Reserve Fund - Fencing & Bin Stores

No charges

Communal Electricity & Gas

Our estimates continue to be based on the average consumption in kWh per building over a period of 3 years, which is the multiplied by the current unit rate and standing charges.  As the energy markets continue to be volatile, we have assumed a small increase in costs from October 2026, which has been built into this year’s estimates. Generally, most of our service charges for gas and electricity have seen a reduction.  Our energy contracts are procured on a commercial basis, which gives us a lower unit cost than standard domestic rates available on the energy markets.   Our costs are not affected by the Energy Regulators price caps, as these only affect domestic supplies.

Communal Water & Sewerage

As you may have seen in the press water companies have asked OFWAT the regulator to increase water charges way above the current level of inflation to allow them to invest more in infrastructure and improving the environment.  In setting this years’ estimates we have allowed for the proposed increase in the cost of water of 7%.

We have also seen a general increase in the volume of water being used, which could be the result of a number of factors, such as improved occupancy rates of our properties and the change in summer weather.

Septic Tank - Private Sewerage

No charges.

Communal TV Licence Fees

The Government has set the TV licencing fee to increase each year by the average CPI % from October to September of the previous years. We have increased fees therefore by 3.14%

Business Rates & Council Tax (Communal)

No charges.

Garden Maintenance

Garden maintenance costs were increased by 5.69% reflecting the contract price increases within the current environmental contracts for 2026-2027.

Communal Cleaning

Communal Cleaning has seen a large increase this year. We have had to increase the charges due to an increase in salaries, increased cost of materials and equipment, and we have also increased the fleet size.

The total estimated cost of communal cleaning is £952,262; this also includes a deficit carried forward from 2024/2025 of £88,707.97.

Window Cleaning - Ground Floor Level

Our window cleaning contract from April has been increased from £10 per visit to £12 per visit, so the increase in your service charge equates for the increase. This cost relates to one scheme

Window Cleaning - Upper Levels

Our window cleaning contract from April has been increased from £10 per visit to £12 per visit, so the increase in your service charge equates for the increase. This cost relates to one scheme

Refuse Collection Facilities

We have seen an increase in the collection costs for our refuse collection service and from April, this will be £285 annually per bin. Therefore, we have had to increase the service charge to cover the increase in cost.

Garden Features & Furniture

We used our actual spend information from 2024/25 and uplifted this using September’s RPI figure in 2025 which was 4.5%.

Caretaking Service

We have seen an increased cost in our caretaking service due to an increase in staff costs with an increase in salary due from April. We have also increased our fleet size to allow us to have the capacity to carry out a larger number of works in our blocks and we will be able to complete these tasks quicker, ensuring our blocks and properties are well maintained and safe for our residents.

Communal Heating & Water

Our estimates continue to be based on the average consumption in kWh per building over a period of 3 years, which is the multiplied by the current unit rate and standing charges.  As the energy markets continue to be volatile, we have assumed a small increase in costs from October 2026, which has been built into this year’s estimates. Generally, most of our service charges for gas and electricity have been a reduction.

Property Specific - Water & Sewerage

As you may have seen in the press water companies have asked OFWAT the regulator to increase water charges way above the current level of inflation to allow them to invest more in infrastructure and improving the environment.  In setting this years’ estimates we have allowed for the proposed increase in the cost of water of 7%.

We have also seen a general increase in the volume of water being used, which could be the result of a number of factors, such as improved occupancy rates of our properties and the change in summer weather.

Furniture Charges - Not Communal

This charge has not increased from last year.

Miscellaneous Charges

This charge is where we are a leaseholder and another landlord is the managing agent, so we have no control over their costs.  Setting estimates has become very difficult as each agent works in different ways, so this year we have removed this charge for all properties that pay an Affordable rent and have allowed the rent to change. We will continue to pay any managing agents charges but not account for them within service charges.

Where tenants pay a social formula rent and where we can clearly identify costs, we have continued to charge.

Gas – Private

No charges.

Electricity – Private

Our estimates continue to be based on the average consumption in kWh per building over a period of 3 years, which is the multiplied by the current unit rate and standing charges.  As the energy markets continue to be volatile, we have assumed a small increase in costs from October 2026, which has been built into this year’s estimates.   Generally, most of our service charges for gas and electricity have been a reduction.

ICT & Communications

No charges

Supported Housing Officer Service

No charges

Waking Night Support

No charges

Intensive Housing Management

In the previous years we have charged for Supported Housing Officer Services. After consultation in 2025 this service ended on 30 August 2025, and tenants started to receive this service.

Charges have increased to reflect annual pay increases and changes to National Insurance increases.

Security Officers

No charges

Open Space Grounds Maintenance

Our estimate was based on asset information given to us by the landscaping team setting out what works are carried out in each Parish. This asset work has also identified more land which we are required to carry out maintenance work on, which in turn has increased our costs. Costs were also increased by 5.69% reflecting the contract price increases within the current environmental contracts for 2026-2027.

Street Lighting

No charges

Rubbish Removal

No charges

Play Equipment

No charges

Car Parking Charges

No charges

Admin Fee for Parish Charges

The admin fee is calculated as 10% of the total cost of your open space charges.

Administration Fee at 10%

The admin fee is calculated as 10% of the total cost of your eligible service charges.

Administration Fee at 5%

The admin fee is calculated as 5% of the total cost of your ineligible service charges.

Ground Rent

Some leaseholders are required to pay a minimal ground rent of £10 per year. Whilst the regulations require the freeholders to request it in a set way annually, most landlords now include it as a service charge component to save both time and cost.

Building Insurance Premiums

Premiums have increased to reflect the general insurance market which take account of the rising costs of building materials and labour. This resulted in an increase on average of 14.14%.

Property Repairs Provision [banded charges]

We previously introduced a banding system to estimate the cost of general repairs and maintenance. 

This year the banding assigned to each property are based was based on a review of the actual repairs spend over the last 3 years.

Across our stock we have seen an increase in the number of repairs being carried out and a higher cost for these works as well, due to a rise in labour and material costs. 

Therefore, some people will see an increase in their repair’s estimates. 

Leasehold Management Charge

We have completed the new year calculation of our management charge, and this works out to be £305.76. Details of which are shown below: 

We have introduced a reduced management fee for those shared ownership leaseholders who have staircased their ownership of their home to 100% so are now “full leaseholders”. They generally have repairing leases so only have buildings insurance arranged with us. This new fee will be £25.00 per year.