Understanding your service charge

It covers "communal" costs such as cleaning of shared hallways, grounds maintenance (gardening), electricity for communal lighting, lift servicing, and fire safety equipment checks.

The electricity charge on your statement is for communal areas (e.g., stairwell lighting or powering a lift) and is separate from the energy you use inside your own home.

Charges are based on the specific services your block or estate receives. A neighbour might pay a different amount if they live in a different block with different facilities (e.g., one block has a lift and another does not). Also, they could have a different tenancy or lease agreement that means they pay a different amount.

Most communal charges (e.g. cleaning, gardening) are "eligible" and covered by benefits. However, "personal" charges (e.g. your own heating, water, warden alarm or a support worker's time) are usually "ineligible" and must be paid by you.

Yes. If you receive Universal Credit, it is your responsibility to report any changes to your rent and service charges via your online journal as soon as the change takes effect.

This fee (often around 15%) covers the administrative costs of managing the services, such as tendering for contractors, checking and paying invoices, and preparing your estimates and annual statements. This is standard practice across all housing associations.

If you live in a block with a communal lift, the cost is usually shared equally among all residents in that block, regardless of which floor you live on or how often you use it.

Service charges ensure that essential services, such as rubbish collection and lighting in shared corridors are provided. Without these contributions, communal areas would not be properly maintained.

Most housing associations review and increase service charges once a year, typically in April, coinciding with the annual rent review.

Yes. We usually give you this as part of the annual rent review. You also have a legal right to request a summary of the costs that make up your service charge. Eastlight must provide this, typically within one month of a written request.

You should contact your Neighbourhood Lead. They can investigate the charge.

You should contact your Neighbourhood Lead. They can help set up a payment plan if needed or signpost you to advice agencies if you need support with your benefit entitlement.

A breakdown of costs will be issued to you, and this will include a breakdown of what charges you contribute to. If you’re concerned about the amount, we welcome queries and are happy to discuss the details with you – please contact your Neighbourhood Lead. If you are still unhappy with the outcome, you can use Eastlight’s formal complaints process. If the issue remains unresolved, you may be able to appeal to the First-tier Tribunal (Property Chamber).

We invite feedback from tenants and leaseholders and may consult you on changes to services. Your views are important, and we encourage you to share them with us. Please remember that some services are compulsory, for example, how often we service lifts.

No. Your basic rent typically covers repairs inside your home and major works such as replacement windows, kitchen and bathrooms. Service charges only pay for repairs to communal areas and shared facilities.

We’ve listened to your feedback and we’re strengthening our oversight of the services in your neighbourhood, giving your Neighbourhood Lead and team a clearer role in monitoring what you receive.

As part of our wider service charge improvement project, we’re also:

• Strengthening our oversight of managing agents
• Ensuring regular checks so services match the needs of each neighbourhood
• Improving how we manage contracts and utilities, such as gas and electricity
• Reviewing high charge service charge caps each year to help keep costs fair for all residents.

These changes directly respond to concerns raised by residents and will increase accountability and the value for money for the services you pay for.

Fixed: If you live in a rented home, you will have a fixed service charge. The charge is set at the start of the year based on an estimate, and the amount you pay does not change, even if the actual costs are higher or lower.

Variable: If you live in a leasehold or shared ownership property, you will have a variable service charge. We estimate the costs at the start of the year. After the year ends, we compare the estimate to what we actually spent. Any difference (surplus or deficit) is adjusted in your future charges.

This is the lower of 80% of the market rent or the Local Housing Allowance for that particular property type in that local area. Eastlight’s policy is always to set rents, including the service charge, at the lower rate of 80% of the market rent, or the Local Housing Allowance.

Yes, however, because the way affordable rent works, regardless of what services you are receiving, it does not affect the total charge. Therefore, based on this, even if we were to remove a service or add another service, the total you pay will not change except for year-on-year annual rent increases.

Yes. Affordable rented service charges along with the rent will increase every year based on Sept CPI +1%. This is in line with government regulations.

A Year End Account will show the amount that we estimated for each charge type at the start of the year, then compare this with actual amount spent during the year. The difference between these two values is the year-end balance, which we show for each charge. This can be a surplus (money Eastlight owes the customer) or deficit (money the customer owes Eastlight).

This must be six months after the specified year end period, please refer to your lease to see when your year starts and finishes. Generally, most years run from 1st April when new estimates are set to 31st March the following year. This means year end account must be with the customer before 30th September.

Major works refer to significant repairs or upgrades to the communal or shared parts of the building, such as replacing windows, roofs, or communal doors. Works also include external decorating to blocks of flats, together with internal decorating if there are internal communal areas. The cost is typically shared among leaseholders or shared owners according to the terms of their lease or ownership agreement.

Apportionments are usually based on the number of properties in the block or ‘according to user’ - which means it is determined by your lease. Your lease or ownership documents should explain how costs are divided for major works.

If the costs of the work or the contracts are over a certain level, leaseholders will be informed using the statutory Section 20 process. If you believe the apportionment or amount is unfair, you will have the opportunity to challenge it as part of the Section 20 process. If the Section 20 process is not carried out and it should have been, costs recovered through service charges could be capped.

We value feedback from leaseholders and shared owners and may consult you on proposed changes. Your input helps shape how services are delivered.

Yes, part of your service charge may go towards a reserve or sinking fund, set aside for major future repairs or improvements.