2024/25 Rent Increase Arrived Through Post - Huge 255% Service Charge Increase

TH71

Just received the 2024/25 Rent Increase letter through the post from TGP (G is a alcoholic drink).

The rent increase looks about standard in comparison to previous years, however the Service Charge has jumped up from it's usual from previous years of around £9 per month to £32 per month for the next year......that is one big increase.

Anybody with similar increases to Service Charge recently? Is the named Housing Association taking the mick? Do I accept the 255% increase? Or is it just a sign of the times

GDB2222

What does the service charge cover?

daveyjp

The service charge notification should have a breakdown of costs last year and estimated costs for next to arrive at your annual payment.

If the compnh have overspent this year they need to cover the losses next year as well as budget for increase in costs going forwards.

RHemmings

That £32 per month is £384 per year. That sounds still incredibly cheap to me. £9? My mind boggles as to how a service charge could be so cheap. 

TH71

@GDB2222 Looking on the TGP website, it supposedly covers garden and grounds maintenance of communal areas, bin emptying, pest control, repairs to communal areas, lighting, Buildings Insurance and Management fees.

@daveyjp All that is on the letter received today in the 2024/25 Annual Service Charge section is Buildings Insurance (£370) and Management fees (£15). This is compared to last years 2023/24 (£104 and £15)

So the Management Fees are the same, but Buildings Insurance has risen £266

Off their website:

The service charge you pay covers your Buildings Insurance premium and those areas not owned by you or the council such as communal hallways or communal gardens.

TH71

RHemmings said:

That £32 per month is £384 per year. That sounds still incredibly cheap to me. £9? My mind boggles as to how a service charge could be so cheap. 

Probably because they only turn up once in a blue moon to cut the grass, and the communal bins never get emptied

RHemmings

TH71 said:

RHemmings said:

That £32 per month is £384 per year. That sounds still incredibly cheap to me. £9? My mind boggles as to how a service charge could be so cheap. 

Probably because they only turn up once in a blue moon to cut the grass, and the communal bins never get emptied

I was wondering if the £9 paid for one person to come once a year and sweep the hall or something like that. 

GDB2222

So, your complaint is that the insurance cost has gone up from £104 to £370. You  can reasonably ask why, but I suspect that the answer will come back that the increase is outside the control of the council, and/or the insurers were making a loss so put the premium up. 

thegreenone

If you have big communal bins, there should be a contract in place to empty at least twice a month.  Otherwise, if you pay council tax that should cover emptying the bins.

propertyrental

Property insurance has gone up.....

TH71

Sounds like the TGP must have had a load of complaints on the service charge/insurance increase as it is on one of the options when you call them. Press (number) if it relates to the increase in Service Charge

I did a Building AND Contents cover comparison and it came out less than £100 per year with £0 excess in most cases

TGP have sent me a leaflet from Zurich Municipal Select for Social Housing, who are providing the cover, but not mentions of a breakdown of the annual amount of £370

A bit suspicious about this one. Been on hold now for the last hour. I suppose loads are ringing TGP about the same thing