Tenant Rent and Service Charges Policy

4.1 The Council has not de-pooled service charges from rent, therefore without de pooling, it cannot charge service charges to existing tenants or properties, unless:

a) The services are new

b) The services are enhanced

4.2 Where these conditions apply, recommendations regarding charging will be made and considered by Cabinet, and inclusion in budget proposals.

4.3 Service charges are collected in addition to rent to recover the costs incurred in providing services to a property or estate. Service charges are set with the intention of covering costs, not delivering surplus.

4.4 In recent years, scheme viability for new developments has become more challenging. Service charges will be charged on all new flats which are developed for (or purchased by) the HRA. The below sets out examples of service charges which could include, but are not restricted to:

a) Cleaning and Estate Management

b) Communal Utilities

c) Security & Fire Safety charge

d) Lift Maintenance and Mechanical & Electrical Charge

e) Provision of Equipment

4.5 Administration Fee Service charges for new flats will be set in line with the relevant legislation (as set out in the policy summary by the Income and Home Ownership Manager and approved by the Assistant Director (Finance), in consultation with and Assistant Director (Regeneration and Economic Development).

4.6 For any new services or enhanced services that we provide to existing blocks, we will consult with tenants regarding the setting of service charges, including what services are to provided and why charges are incurred.

4.7 The overall aim of the policy is to ensure that service charges are set based on the projected costs of the services provided, and that the method of calculation is transparent and can be easily understood.

4.8 Service charges will be reviewed annually by the Income and Home Ownership Manager and calculated amounts approved by the Assistant Director (Finance).

4.9 Tenants will be given at least one month’s notice prior to the implementation of any changes to service charges. These changes will usually become effective on the first Monday of April in any given year, unless this is for a new service that is introduced during the financial year.