Service Charges Consultation
Service charges are an amount that tenants pay to cover the cost of providing communal or shared services to a building and, if applicable, the surrounding grounds. There are also some tenants who pay for their domestic heating and/or electric through a service charge.
We're committed to providing all our tenants with value for money, quality services and do not make a profit from the money we collect.
Currently tenants are expected to pay a weekly charge to cover the cost of services provided, alongside the rent. The rent includes the cost of providing repairs and replacement items such as boilers, kitchens and bathrooms.
Currently the Council is not recovering all the money it spends on providing communal services. Some tenants are not paying enough, and others are not charged at all. We need to change this approach and propose to implement some changes from April 2024. We also want to ensure you can see an itemised break down of the cost of each service you receive.
The Council is proposing to:
· Itemise the cost of each service a tenant receives to give clarity on the cost of providing them e.g. cleaning, communal lighting and heating.
· Ensure service charges reflect the actual cost of providing services.
· Introduce charges for communal services which tenants do not currently pay for
· Charge tenants who receive communal services but don’t currently pay for them.
Phases
Outcomes and final position on Service Charges
Thanks to everyone who took part in the consultation.
All of the feedback gathered during the consultation has now been collated and fully considered alongside the impact the proposals have on both tenants and the Council.
Our proposed position which will be presented to Cabinet is now being shared below.
10% of the affected tenants we wrote to responded to us through the various consultation options. Of those:
- 76% of respondents agreed with the proposal to break down service charges by individual elements to give greater transparency of the services tenants receive and pay for.
- 67% of respondents agreed that tenants receiving such services should be charged the actual cost to the Council of providing them.
- 64% of respondents agreed that tenants should pay for all of the communal services they receive.
- 69% of respondents agreed that tenants who are not currently charged for receiving communal services should pay for the communal services they receive.
We also received several comments from some respondents and we would like to ensure we address those:
- There were some general comments raised about cost of living pressures and affordability. The ‘Eligible’ elements of your service charge can be covered by Housing Benefit or the housing element of Universal Credit if you qualify for this. If you are experiencing financial difficulties, our website newforest.gov.uk/costofliving contains information about the help and support that may be available to you. Alternatively, you can talk to our friendly Tenancy Account Team by calling 023 8028 5222.
- Some comments were made about the standards of services received in general, with a focus mostly on building cleaning and window cleaning. We have been able to respond to each of those comments as we’ve received them, giving tenants information about what the cleaning schedule includes and the frequency of cleaners’ visits, and carrying out additional inspections where necessary. We encourage tenants to let us know if there is any dissatisfaction with the quality of a service so that we can take prompt action to rectify any issues.
- There were some comments asking why these services are not included within the rent charged. Your rent is set by government legislation which sets a formula for us to follow to calculate your rent. The final figure includes the use of your home and any repairs needed to it, along with some services such as estate management and other improvements to your home. The additional services that we provide affecting communal areas that you have access to, are over and above what is covered by your rent. Service charges are legislated separately from rent, under the Landlord and Tenant Act 1985.
- Some people said that they don’t use the services and so were not happy about paying them. Service charges contribute to the costs of services and facilities within communal areas that all tenants will have access to, or benefit from. If you live in a property where there are communal facilities and/or services, you cannot opt out of paying service charges.
On balance and given that the majority of respondents agreed with the proposals, we will be recommending the Council’s Cabinet take the decision to proceed with the service charge changes as proposed. This decision will be formally considered between now and mid-February. All affected tenants have been formally written to to confirm this position.
If the Council’s Cabinet agree to proceed with the service charge proposals, further letters will be issued, and everyone affected will receive this at least 4 weeks before any service charges take effect.
If you have any questions, please don’t hesitate to contact us on 023 8028 5222 option 5 then option 2, or email housing.business@nfdc.gov.uk