Let’s be honest… nobody likes to see their bills go up, particularly when it comes to service charges.
I’m a leaseholder, so I share the concerns of thousands of service charge payers across the country who are feeling the financial pressure from service charge increases.
I’m also a resident member of the Southern Housing Board, which gives me an insight into the ‘other side’ of the issue. My position on the Board has allowed me to ask the organisation tough questions about service charges and gives me a broader insight into a difficult situation.
What’s driving higher service charges?
As service charge payers, we need the structure of the building we live in maintained and insured, together with other communal services like lift maintenance, cleaning, utilities and gardening.
We want to feel pride in where we live, to feel safe and protected, and we want things working as they should.
There is, of course, a cost to this.
The Grenfell tragedy highlighted the critical need for safety standards to be fully met and consistently enforced. Following the tragedy, new fire safety regulations were introduced which require regular inspections.
It’s reassuring to know added measures are in place to enhance fire safety. But this has added to costs, as many of the checks must be carried out by certified professionals. It’s estimated this new legislation and regulation accounts for around a 30% increase in service charge costs.
Another impact of Grenfell has been higher insurance premiums on large blocks of flats, as insurers see them as much riskier to insure than they did before. In addition, inflation in repairs and building maintenance has exceeded increases in the Consumer Prices Index (CPI). All of these factors combined have resulted in significant service charge increases that have exceeded headline inflation.
Supporting residents with rising service charges
While many of these cost increases are outside of a housing association’s immediate control, there are things which are being done to support service charge payers.
The organisation takes seriously its responsibility to challenge costs, secure value for money and ensure residents only pay for services they're responsible for under the terms of their tenancy agreement or lease.
One action being taken by Southern Housing is to bring more services in-house, which not only improves value for money but aims to deliver consistency of service delivery.
The organisation’s Procurement Team is also working hard to ensure the best value when procuring contracts. They understand the importance of spending money wisely and ensuring Southern Housing (and ultimately service charge payers) are paying the right price for the works and services we need. There are also dedicated staff whose job is to hold managing agents to account on behalf of leaseholders in blocks where Southern Housing is not directly responsible for service charges. They actively challenge costs and performance on residents' behalf.
Improving the overall experience
I know the difficulties some residents have faced aren’t just related to cost increases. It’s about their overall experience of service charges, which has been challenging.
This includes understanding how charges have been calculated, receiving information in a timely way and feeling confident in the answers they receive. Southern Housing is making changes to improve that experience and I can see progress is being made.
For example, Southern Housing recognises it hasn't always met residents' expectations when it comes to communicating about service charges, and that's something the organisation is actively working to improve.
Residents will be central to Southern Housing changing its communications approach. The Resident Scrutiny Panel, made up of residents who carry out detailed reviews of our services, is currently carrying out a project focussed on service charges.
The Panel is assessing the effectiveness of communications around service charges at Southern Housing and looking closely at the resident experience. This project is due to complete this summer, with recommendations being shared with myself and the rest of the Board.
The Resident Communications Panel is also reviewing key service charge messages, ensuring they are clear and delivered in a way that is easy to understand.
It’s important all service charge payers clearly understand what they’re paying for, why, what they’re getting in return and that costs have been correctly charged.
My commitment to you
Southern Housing doesn’t make a profit from service charges and its social purpose, which stretches back 125 years, remains providing stable, secure and affordable homes. It's why the organisation is focussed on driving positive change.
I'm hoping service charges stabilise over the next few years, but future costs are difficult to predict. However, I can assure you as a resident Board member I’ll play my part in ensuring the organisation remains committed to transparency and efficiency - making service charges easier to understand and delivered with the level of service residents rightly expect.
Scott Lawrence joined Southern Housing in March 2026 as Director of Service Charge & Managing Agent Clienting. He leads the teams responsible for service charges and is working across the organisation to improve the accuracy, transparency and communication of service charges, making them clearer and easier for residents to understand. We asked Scott to answer some of the questions residents ask us most often.
We understand that nobody likes seeing their bills increase, and we know higher service charges can be worrying. Service charges reflect the cost of providing the communal services that keep your building or estate safe, well maintained and running smoothly. These include services such as cleaning, grounds maintenance, building insurance, communal utilities, lift servicing and essential safety checks. In recent years many of these costs have increased due to inflation, higher insurance premiums, rising contractor costs and new building safety requirements. Whilst many of these costs are outside our control, we work hard to achieve value for money and only recover charges where your tenancy agreement or lease allows us to do so.
Service charges are calculated using information from contractors, suppliers and our own financial records, following the terms of your tenancy agreement or lease. Before charges are issued, they go through a number of financial and operational checks to help ensure they're accurate. Where your service charge is variable, we also compare estimated costs with the actual costs incurred at the end of the financial year and make any necessary adjustments. If you ever have questions about your charges, we're happy to explain how they've been calculated and provide supporting information where you're entitled to see it.
At the start of each financial year, we estimate how much services are likely to cost because we don't yet know the final amount we'll pay suppliers and contractors. Once the financial year has ended, we compare those estimates with the actual costs incurred. If the actual costs are lower than estimated, your account will be credited. If they're higher, there may be an additional amount to pay.
This means you pay the actual cost of the services provided rather than simply the original estimate.
We know some residents have waited longer than they should have for their year-end service charge statements and reconciliations, and we recognise the frustration this has caused.
Producing reconciled service charge accounts is a complex process involving information from a number of teams, contractors and managing agents before the accounts are independently reviewed. In recent years this process has taken longer than we would have wanted.
Improving this is a priority for Southern Housing. We've strengthened our planning, increased resources within our service charge teams and are improving the way information is collected and checked so we can provide residents with more timely and accurate information. While there is still more to do, we're already seeing progress and remain focused on delivering the service our residents rightly expect.
We're not where we want to be yet, and it's important we're honest about that. Our focus is on making steady, measurable improvements rather than promising quick fixes. Residents should expect to see improvements in the timeliness of information, clearer communications and greater transparency as these changes continue to be embedded.
If something doesn't look right, please get in touch. We'll always do our best to explain the charge, answer your questions and investigate any concerns you've raised. If, after we've reviewed your query, you still believe something isn't right, we'll explain the options available to you, including our service charge dispute process where appropriate. We want every resident to feel comfortable asking questions and confident they understand the charges they pay.
We know residents want service charges to be accurate, easy to understand and supported by a service they can trust. We also recognise that, in recent years, some residents have experienced delays in receiving information and responses to service charge enquiries. We know this has been frustrating, and improving that experience is one of our key priorities.
That's why we're strengthening our service charge processes, improving the information we provide, reviewing how we communicate throughout the year and working more closely with residents to shape our communications.
Improving service charges isn't just about producing accurate bills, it's about making sure residents receive clear information, timely responses and have confidence in the service they receive. While there is still more work to do, we're already making positive progress and remain committed to delivering a service residents can have confidence in.
No. Southern Housing does not make a profit from service charges. Service charges are there to recover the cost of providing the services set out in your tenancy agreement or lease, such as cleaning, maintenance, insurance and communal utilities. We continually review contracts, challenge costs and look for opportunities to improve value for money while maintaining the quality and safety of the services we provide.
