We know service charges can be complex, and we’re working to make them easier to understand for our customers. While costs have risen across all sectors over the last few years, we’re taking steps to make sure our customers have greater visibility and confidence in how their money is spent.

Higher bills have understandably placed greater scrutiny on service charges, particularly in the context of the wider cost of living crisis. Consumers now require a more detailed level of information to understand what they are paying for as they more carefully manage their personal and family finances.

The Property Institute’s (TPI) Service Charge Index provides an industry benchmark. It shows that service charges have risen across the entire property management industry over a five-year period. This has principally been due to substantial increases in building insurance, utility costs and adjusting to new building safety regulations. 

We have also carried out our own analysis across our portfolio of circa 6,300 developments. Across the portfolio, we recorded an average year-on-year (FY23 to FY24) cost increase of 2%, with 44% of developments experiencing a change in costs of 2% or less, and a median increase of 6%. These increases were primarily driven by stricter health and safety regulations, increases in supplier costs for maintenance services, and rising labour costs in line with strong wage growth. 

View our diagram which breaks down the types of services that are covered within your service charge.

Visual. What Does The Service Charge Cover

Our commitment to customers

It is clear that our industry has not kept pace with these heightened consumer expectations and is inconsistent in making sure residents clearly understand the costs that make up their service charge.  

To adapt to these changing demands, we are: 

  • Improving how we share service charge estimates, invoices, and year-end accounts with residents. We’ve introduced a newly formatted invoice, designed to improve clarity and ease of understanding for customers. As part of a wider review of all service charge communications, we’re redesigning our service charge documents and introducing a dedicated section within our customer portal to make information clearer and more accessible. Once we have received feedback from customers, we will aim to roll out the revised formats in 2026.
  • Implementing explainer documents which outline in customer-friendly language how to read and digest the information we send to them. You can view our Service Charges Explained guide.
  • We’re also improving when we share service charge information. Our regional management teams will make sure our customers have the opportunity to ask questions and understand their service charge. This could include holding resident surgeries before we send out the service charge estimate or year-end accounts, so homeowners can get the answers they need in advance.