Service charge FAQs

How are my service charges calculated?

Your service charges are made up of estimated costs for specific common area services in the year ahead and any over or under spend against budgets in the previous financial year. These are worked out by looking at current and previous costs on your estate/scheme.

Can I claim housing benefit for my service charges?

Most service charges are eligible for housing benefit. These are provided at the start of the tenancy and in service charge consultation and rent notification letters that are sent to residents each year

What is a variable service charge?

All our service charges are variable. This means, that before the start of each financial year, estimates are worked out for all services relevant to your home in the year ahead. At the end of each financial year the actual costs of providing the services is compared with the estimates and any over or under spend is adjusted in the next years service charge.. This ensures residents only pay for the actual costs of the services that they receive.

Why do I receive a consultation letter?

In December each year tenants receive a consultation letter concerning the proposed service charges which apply from the following April. A consultation period then follows where residents can contact the Service Charge Team and raise any queries or points about the proposed service charges.

What is a Depreciation charge?

Some service charges contain Depreciation charges for items and services such as Door Entry Systems, Lifts, Tree Surgery & TV Aerials. These charges spread the cost of this equipment/these services over a number of years. This avoids large service charge increases at the point works have been completed.

Why do I pay a service charge for clearance of rubbish?

This charge covers the removal of bulky rubbish carried out by Circle 33 Housing Trust and is split between all residents. We encourage residents, wherever possible, to arrange for the removal of their own bulk items, however when this doesn’t occur, the removal of items is arranged and recharged to residents within their service charges.

What should I do if the services I pay for are not of the right standard or good value for money?

Contact the Estate Services team through the Contact Centre on 0800 073 0417 or 0207 447 3100 and they will look into it for you. In some cases if it is clear a service has not been provided when it should have been we will refund the cost through service charges.

Last modified 06/04/11

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