service charge review

whg are beginning a review of the service charges it charges to some of its customers.

What are service charges?

A service charge is an amount you pay for additional landlord services, such as communal heating and lighting.  Service charges may also cover other things like the maintenance of grounds and communal areas or caretaking services.

Why are whg reviewing the service charges?

Over recent years we have been continually improving services. 

To ensure that we are meeting the high standards that our customers expect, we are reviewing the way customers are charged for services they receive.  We are doing this so that we can introduce a clearer and more transparent charging arrangement.  Customers deserve the best service and want to know they are getting value for money.

How have services improved?

Within blocks of flats we have made cleaning better and more reliable.  We have improved more door entry systems, increasing security for customers, as well as improving and expanding caretaking services through the roles of Neighbourhood Impact Officers.  We have started to invest heavily in improving environmental areas and grounds areas around blocks, and also ensured that TV aerials can receive digital broadcasts.

Last year, we reviewed our cleaning and grounds maintenance contracts and Pinnacle were chosen to carry out these services on our behalf.  A group of customers were involved in the review, evaluation and selection of the contractor and customers will continue to be involved as we monitor the services being provided under the new contracts.

How will the service charges I pay change?

Tenants and leaseholders who pay a service charge now pay for services they receive under the following headings:

  • heating and electricity (to communal areas)
  • cleaning (to communal areas)
  • caretaking (for part of the service provided by Neighbourhood Impact Officers).

In future the service charges will be grouped under the following headings:

  • communal cleaning, access, heating and lighting (this will include heating and electricity, cleaning, lifts and door entry and the neighbourhood environmental team)
  • grounds maintenance and caretaking (this will include keeping the grounds around blocks clean and tidy, grass cutting, shrub maintenance etc and the caretaking service provided by Neighbourhood Impact Officers)
  • communal electronic services (aerials).

whg has invited all affected tenants to join in consultation on how to introduce these changes.

Some people in my block have bought their flat - will they have to pay service charges as well?

People who have bought their flat or maisonette are called leaseholders.  They have always had to pay a service charge and will continue to do so.

I never use some of your services - can I opt out?

No.  Some of the services are essential to everyone, for example, keeping estates well looked-after helps to prevent anti-social behaviour.

Some of my rent is paid by Housing Benefit - can I still claim this?

Yes.  All of the rent and service charge costs will still be eligible for Housing Benefit.  Provided that your circumstances have not changed, you do not need to fill out any more forms.

What is the difference between rent and service charges?

Rent is a charge for use of your home as a property. It takes into account things like whether it is a house or a flat, how many bedrooms you have and so on.

Service charges cover two things.  Firstly, the costs of keeping in good order estates and facilities that are likely to be used by tenants of the area as a whole, not just one property.  Secondly, the costs of facilities provided to individual blocks.  For example, the cost of repairing the front door to your own home is covered in the rent because only you will benefit from that.  Things like grass cutting and door entry systems benefit everyone who lives in the block and it is right that they pay a share of those costs.

Can I have a say in these changes?

Yes.  whg has already invited all affected tenants to join in consultation on how to introduce these changes and open consultation events were held across the borough.  If you did not attend the consultation events, you can still give us your views. Email lynne.reynoldsgough@whgrp.co.uk or telephone us on 0300 555 6666.