Your new service charge
Hello, you should have received your new service charge statement for 2023-24. Your 2023-24 increase is directly linked to the costs we’ve experienced from our suppliers and contractors. We do not make a profit on service charges.
If you have any questions or would like some support, just give us a call – we’ll be happy to help.
Service charges explained
Service charges are your share of the cost of managing, maintaining, repairing, insuring, and providing services to your building and neighbourhood.
The information below sets out what may be included in each charge, how we've worked it out and the way it is allocated. Don’t worry, they won’t all be applicable to you - only the ones in your letter!
Audit fee
What it is:
To ensure your charges are correct and fair, and as a part our requirement under your lease, we'll commission an independent audit to review our service charge accounts.
How we've allocated it:
This charge is shared equally amongst all our leaseholders and shared owners.
How we've worked it out:
Your audit fee charge is the direct cost we incur from our auditors and will be detailed in your actuals (September 2024).
Buildings insurance
What it is:
The cost to insure your building against risks such as fire or water damage.
How we've allocated it:
This charge is shared equally amongst all our leaseholders and shared owners.
How we've worked it out:
Your building insurance is the direct cost we incur from our insurers.
Bulk rubbish
What it is:
The removal of large items left in communal areas or bin stores. This includes bulk waste, fly-tipped items (such as old furniture) and rubbish left outside the bins. Your council will remove this waste for free twice a year - just visit the LBTH website.
How we've allocated it:
Bulk rubbish collection is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
We use contractors to remove bulk rubbish. Your charge will reflect their cost and will be based on how much bulk rubbish they removed from your building last year (2022-23 financial year).
Caretaking & cleaning
What it is:
Cleaning of your internal and external communal areas (such as stairwells, landings and bins). This charge includes the cost of cleaning materials and equipment, as well as deep cleans and rapid response (out of hours cleaning that pose a health & safety risk)
You can help to keep costs low by not dropping litter, urinating in lifts and double bagging your waste if it has liquid in it.
How we've allocated it:
Cleaning is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge covers the direct cost of our cleaners, materials, equipment & specialist contractors. It is based on how much it cost us to clean your building last year (2022-23 financial year).
Cold water storage
What it is:
To check your water is safe and provide any necessary treatment. The charge includes the cost to repair, replace and maintain your water pumps and shared cold water storage tanks and pipework.
Although you pay for the water you use in your home, all water in your building enters through one pipe. We’re required to ensure that your water is safe for you and your household.
How we've allocated it:
Cold water storage is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to provide your service.
Communal electricity
What it is:
The electricity you use in your communal areas (for things like lighting, lifts and door entry systems). This charge also includes the cost to inspect and certify your electricity is safe.
As with all your service charges, you are only charged for what you have and use in your building.
When we replace light bulbs, we’ll ensure they are energy efficient, to help keep costs down as well as being kinder to the planet.
How we've allocated it:
Your communal electricity charge is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your communal electricity charge is based on your previous consumption from last year (2022-23 financial year) and this year's fixed price contract with our utilitiesprovider.
Communal heating maintenance
What it is:
Servicing and repairing communal heating in your building. This charge does not include repairs inside individual homes.
How we've allocated it:
Communal heating is allocated per block, meaning the cost is shared between you and the neighbours living in your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to maintain your communal heating.
Communal repairs
What it is:
Repairs and maintenance of your communal areas.
How we've allocated it:
Your communal repairs are allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge reflects how much it cost us to provide repairs to your building over the past three years and the average cost of small repairs (one to two) per home in your surrounding area. Based on our data, we've also tried to predict where repairs/work may be required and include it in this cost, as opposed to further costs down the line.
Communal TV aerial/satellite maintenance
What it is:
Repair, replacement, and maintenance of your building’s aerial to connect a TV signal to your home. This does not cover the cost of your personal set up (e.g., Sky or Virgin Media)
How we've allocated it:
This charge is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge reflects how much it cost us to repair and maintain your aerial/satellite over the past three years and the average cost of small repairs in your surrounding area. Based on our data, we've also tried to predict where repairs/work may be required and include it in this cost, as opposed to further costs down the line.
Estate Security/Concierge
What it is:
- Repair, replacement and maintenance of CCTV and security equipment (if applicable)
- Providing a concierge service (if applicable)
- Locking and unlocking local parks to prevent anti-social behaviour
- Neighbourhood patrols by Park Guard
How we've allocated it:
Security and concierge (if applicable) is allocated per block, meaning the cost is split between you and the neighbours in your building.
You'll only be charged for locking and unlocking your local park if it's on your estate. In these instances, the cost is split between all residents on the estate, as opposed to just your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to provide your service.
Entryphone maintenance
What it is:
Repair, replacement and maintenance of communal door entry systems, shutters, and gates. This cost doesn't include fob replacement. If you’ve lost or broken your fob, please get in touch with our customer services team.
How we've allocated it:
Your entryphone maintenance is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge reflects how much it cost us to maintain your entryphone over the past three years, plus the average cost of small repairs (one to two) per home in your surrounding area. Based on our data, we've also tried to predict where maintenance may be required and include it in this cost, as opposed to further costs down the line.
Estate maintenance & horticulture
What it is:
- Upkeep of communal gardens and hard landscaped areas, including grass cutting, pruning, tree maintenance, control of weeds, replacement plants and green or brown roofs.
- Quarterly inspections and any repairs of communal playground equipment – and the insurance required.
- Maintenance and replacement of estate signs, as and when required.
- Removal of abandoned vehicles in your car park.
- Repair and maintenance of any private roads or car parks within your neighbourhood.
- Gritting and salt during the winter months.
- Maintaining health and safety equipment (e.g., fall arrest systems) for staff and contractors.
How we've allocated it:
This charge is allocated per estate, meaning the cost is split between you and the neighbours living on your estate.
How we've worked it out:
Our previous grounds maintenance contracts with CSG Usher and Countrywide has come to an end. From 15 May 2023, our new contractor is John O’Conner. Your 2023/24 service charge was estimated prior to John O’Conner being selected and was based on other contracts for this service from similar size housing providers.
John O’Conner provides better value for money and an enhanced service. For more information on John O’Conner and its services, please visit the Our Community page.
Fire Risk Assessments
What it is:
Assess any risks that could cause a fire in your building and identify actions to minimise this.
How we've allocated it:
Fire Risk Assessments are allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to carry out the assessment.
Fire safety equipment
What it is:
Testing, maintenance, repair, or replacement of essential equipment to lessen the likelihood of it failing. We’ll do this while it’s working, so that it does not break down unexpectedly. We'll inspect and test the equipment that is applicable to you on a regular basis:
|
Equipment (if applicable) |
Frequency |
| Automatic Opening Vent (AOV) | Quarterly |
| Emergency lighting | Monthly & annually |
| Fire alarms | Weekly & monthly |
| Fire blankets | Annually |
| Lightning | Every 11 months |
| Solar | Annually |
| Risers | Every six months |
| Sprinklers | Every six months |
How we've allocated it:
Your fire safety equipment is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will depend on what equipment is in your building and how much it costs our contractors to test, repair and replace it. Your charge also includes the cost to repair equipment (not including things like fire blankets), so that you don't have this cost later down the line.
Ground rent
What it is:
This is the rent payable by leaseholders to the building freeholder and is stipulated in your lease.
How we've allocated it:
This will depend on your lease.
How we've worked it out:
The cost is stated in your lease and should not change.
Lift maintenance
What it is:
Monthly maintenance and inspections of communal lifts. Compliance testing must be carried out by certified engineers independent from those responsible for other routine maintenance and repairs services. This charge also includes the cost of a call-out service for broken lifts and the telephone for lift emergency calls.
How we've allocated it:
Lift maintenance is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to maintain your lift/s.
Lift insurance
What it is:
Insurance premium for your lift.
How we've allocated it:
Lift insurance is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the direct cost we've incurred to insure your lift/s.
Personal heating
What it is:
Personal heating is for heating your home, as opposed to your communal areas. If you’re on a fixed charge, you’ll pay the same for your heating every month, regardless of your usage. If you’re on a variable charge, you’ll pay towards the amount that is collectively used.
We know it’s a particularly difficult time and the cost of living has affected us all. If you may struggle to pay your energy bill, there is help out there. Visit our cost-of-living hub for advice on using your heating effectively.
How we've allocated it:
Your personal heating charge is based on the actual usage in your building (2022-23), plus inflation from your energy supplier. It’s then divided between all tenants (residents who rent their home), depending on how many bedrooms you have. Leaseholders pay a % as stated in their lease. It’s not based on everyone using it all day, every day, but will ensure that you can heat your home.
How we've worked it out:
Your charge is based on your previous consumption from last year (2022-23 financial year) and this year's fixed price contract with our utilities provider. In October 2022, we negotiated our fixed utility price through a broker to find our residents the best rate from April 2023. At that time, the best offer was a 10.1% increase in gas per unit and a 36% increase in electricity.
Pest control
What it is:
Providing treatment to remove infestations such as mice, rats, or bed bugs. As well as preventative treatments such as sewer baiting. While your service charges almost only cover communal areas, pest control in rented homes (non-leaseholder) is included in this charge as it’s likely to spread to your neighbours if not treated quickly.
How we've allocated it:
This charge is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge is based on how much it cost us to provide this service to your block last year (2022-23 financial year).
Refuse containers
What it is:
Hiring, maintaining, repair, replacement and cleaning of large paladin bins and other suitable containers for household waste. This charge also includes an annual deep clean of bin, bin chutes and Underground Refuse Systems (URS).
This charge is for the containers themselves, not the cost for collecting and disposing household waste – this is included in your council tax. Your council is also responsible for any missed collections.
How we've allocated it:
Your charge is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to provide your service.
Sewer & drains
What it is:
Maintaining, repairing, unblocking and replacing sewage pumps and drainage systems.
How we've allocated it:
Your sewer and drain charge is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge reflects how much it cost us to service your sewers & drains over the past three years. We base expected repairs on the average cost of small repairs (one to two) per home and have also tried to predict where maintenance may be required and include it in this cost, as opposed to further costs down the line.
Water rates (Peter & Painter House)
What it is:
Residents living in Peter and Painter House do not have an individual water meter. We pay the water company for the usage and apportion the cost per home.
How we've allocated it:
Residents living in Peter House will pay an equal share. The charge for residents living in Painter House will depend on how many bedrooms you have.
How we've worked it out:
Your charge will reflect how much water was used over previous years.
Window cleaning
What it is:
We’ll clean the communal windows or open window areas every quarter but you are responsible for cleaning the windows in your home.
How we've allocated it:
Communal window cleaning is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the direct cost from our contractors to provide your service.
Communal window cleaning schedule
Find the communal window cleaning schedule for your building below.
3rd party managing agent
What it is:
For estates/buildings where THCH don’t own the freehold, the freeholder may employ a management company to provide some or all of your services. This sum is for the service charges THCH pay to them directly. It may cover costs such as grounds maintenance and cleaning.
How we've allocated it:
This charge is allocated per block, meaning the cost is split between you and the neighbours in your building.
How we've worked it out:
Your charge will reflect the 3rd party management agent cost and will be based on how much your service cost last year (2022-23 financial year).
Management charge
What it is:
Our Management Charge includes the costs of running our services - including IT systems, income/statement etc. production, communication, accounting, general overheads, debt recovery and consultations.
How we've allocated it:
This charge is allocated per home, meaning the cost is split between evenly between all our residents.
How we've worked it out:
This charge is 15% of the services delivered to you - excluding buildings insurance, audit fees, ground rent, personal heating and personal water rates.
