July 2024
The Service Charge policy sets out the Riverside’s Group Limited approach to how we determine, review and manage service charges across all properties that have a service charge. These principles ensure that our service charges are fair, reasonable, transparent, accurate and consistent.
We will meet the requirements of the Landlord and Tenant Act 1985, as amended, if the service charges are variable. We will meet the requirements of the Housing Act 1988 if the charges are fixed.
The policy takes account of The Government’s Policy Statement on Rents for Social Housing (updated December 2022). This includes the following expectations, that:
The policy also takes account of the following:
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Service charges allow the recovery of the costs of Riverside providing services, maintenance, and Riversides’ costs of management. For tenants, it is charged as part of, or in addition to, the rent. The liability of the Customer to contribute towards the costs by way of a service charge will usually attach to the right to use a service, rather than just the actual use of it. For example, the costs of providing a lift in a block of flats will usually be charged to all Customers in the block, even if some tenants or leaseholders are living on the ground floor and may not use it. The Occupancy Agreement will confirm this. Only costs reasonably incurred as a direct result of providing services are recharged in the service charge.
Riverside are permitted to charge a management and administration fee in addition to the service charges. Both charges are set in line with the service charge regime applied to the customer account.
The policy applies to the following types of Occupancy Agreements:
The policy is designed to set out high level principles which are relevant across all parts of the group that deal with service charge setting, management, and administration. A more detailed Service Charge Framework setting out appropriate service charge setting guidelines has been developed to support this policy.
Affordable, intermediate and Market Rent properties are out of scope as the services are included in the rent.
Service charges may be variable or fixed. The type of service charge payable is stipulated in the Occupancy Agreement. Both of these service charge regimes are covered by this policy.
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Riverside aims to ensure that service charges are dealt with in accordance with the terms of the contract, for example the lease, licence, tenancy (together referred to in this policy as ‘Occupancy Agreements’) but are also set taking into consideration legal, regulatory and best practice requirements.
If there is a variance between the policy and individual Occupancy Agreements, then the Occupancy Agreements will take precedence.
Mergers, Acquisitions and Stock Transfer agreements sometimes require Riverside to cap service charges for a period of time. This sets an annual limit or ceiling on the service charges, regardless of the actual amount that Riverside may spend in a service charge year. During this period Riverside fully review service charges across the stock to ensure the correct charging methodology is applied.
The key objectives of this policy are:
The desired outcomes of the policy are:
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Our service charges include the cost of all legally eligible expenditure attributable to an estate, scheme, or block where the costs are not deemed under the occupancy agreement to be included within the rent paid. We will account for the cost of all chargeable services provided to the properties. We will do this at estate, scheme, or block level as appropriate, and then allocate the cost between the properties that receive the service. This is the case whether or not customers choose to make use of the facility to which the service and associated charge applies because that facility is maintained for their benefit and available to them to use if they chose to.
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A sinking fund is a fund collected through the service charge to pay for future major repairs which may be unaffordable if requested in the year it was incurred (for example roof replacement, lift replacement). Funds are held within separate deposit accounts. In circumstances where it has not been possible to collect sufficient sinking fund contributions to fully cover the cost of major work, depending on the wording of the Occupancy Agreement, it may be possible to recover the balance through the service charge in the year the work is undertaken.
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The Freeholder of a Section 106 development, also known as the superior landlord, is responsible for the services of running and maintaining the building and external areas. They usually appoint a third party managing agent to deliver the services. The costs are charged to Riverside as the Head Leaseholder and Riverside re-charge these to customers. Care and Support also have third party managing agent relationships.
In these scenarios, Riverside does not set or manage the service and subsequent service charges. Riverside will advocate for our customers and liaise between the customer and superior landlord and will be clear with customers about what it can influence and will inform customers on how to get more information or challenge costs in relation to service charges.
All links will open in a new tab
The Riverside Group has a policy of setting and varying service charges with a low-risk appetite and high-risk threshold. All tenures with a service charge regime must comply with this policy and the accompanying Service Charge Framework. Any variation in practice must be in line with the Occupancy Agreement terms. To ensure compliance and assurance of service charge setting, a Service Charge Process Assurance is completed annually.
In procuring service contracts, The Riverside Group uses a long-term qualifying works contracts over individual contracts to deliver services at Estate and Block level, whenever possible. This is to ensure that the Group’s suppliers comply with health and safety regulations, rather than just being the most cost-effective supplier. Riverside will apply for dispensation for emergency works, which will be delivered without section 20 consultation.
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Customers can complain about Riverside’s adherence to the Service Charge Policy or other aspects of the Service Charge Setting process under our Complaints Policy which is published on the Riverside website.
Leaseholders and Tenants on variable service charges have the right to refer the service charge methodology to the First Tier Property Tribunal. Other customers have the right to refer their service charges to the Housing Ombudsman Service.
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Riverside is committed to Equality, Diversity & Inclusion. We strive to be fair in our dealings with all people, communities and organisations, taking into account the diverse nature of their culture and background and actively promoting inclusion. This policy aligns with Riverside’s Equality, Diversity and Inclusion Policy and has been subject to an Equality Impact Assessment.
All links will open in a new tab
The Service Charge policy sets out the Riverside’s Group Limited approach to how we determine, review and manage service charges across all properties that have a service charge. These principles ensure that our service charges are fair, reasonable, transparent, accurate and consistent.
We will meet the requirements of the Landlord and Tenant Act 1985, as amended, if the service charges are variable. We will meet the requirements of the Housing Act 1988 if the charges are fixed.
The policy takes account of The Government’s Policy Statement on Rents for Social Housing (updated December 2022). This includes the following expectations, that:
The policy also takes account of the following:
All links will open in a new tab
Service charges allow the recovery of the costs of Riverside providing services, maintenance, and Riversides’ costs of management. For tenants, it is charged as part of, or in addition to, the rent. The liability of the Customer to contribute towards the costs by way of a service charge will usually attach to the right to use a service, rather than just the actual use of it. For example, the costs of providing a lift in a block of flats will usually be charged to all Customers in the block, even if some tenants or leaseholders are living on the ground floor and may not use it. The Occupancy Agreement will confirm this. Only costs reasonably incurred as a direct result of providing services are recharged in the service charge.
Riverside are permitted to charge a management and administration fee in addition to the service charges. Both charges are set in line with the service charge regime applied to the customer account.
The policy applies to the following types of Occupancy Agreements:
The policy is designed to set out high level principles which are relevant across all parts of the group that deal with service charge setting, management, and administration. A more detailed Service Charge Framework setting out appropriate service charge setting guidelines has been developed to support this policy.
Affordable, intermediate and Market Rent properties are out of scope as the services are included in the rent.
Service charges may be variable or fixed. The type of service charge payable is stipulated in the Occupancy Agreement. Both of these service charge regimes are covered by this policy.
All links will open in a new tab
Riverside aims to ensure that service charges are dealt with in accordance with the terms of the contract, for example the lease, licence, tenancy (together referred to in this policy as ‘Occupancy Agreements’) but are also set taking into consideration legal, regulatory and best practice requirements.
If there is a variance between the policy and individual Occupancy Agreements, then the Occupancy Agreements will take precedence.
Mergers, Acquisitions and Stock Transfer agreements sometimes require Riverside to cap service charges for a period of time. This sets an annual limit or ceiling on the service charges, regardless of the actual amount that Riverside may spend in a service charge year. During this period Riverside fully review service charges across the stock to ensure the correct charging methodology is applied.
The key objectives of this policy are:
The desired outcomes of the policy are:
All links will open in a new tab
All links will open in a new tab
All links will open in a new tab
Our service charges include the cost of all legally eligible expenditure attributable to an estate, scheme, or block where the costs are not deemed under the occupancy agreement to be included within the rent paid. We will account for the cost of all chargeable services provided to the properties. We will do this at estate, scheme, or block level as appropriate, and then allocate the cost between the properties that receive the service. This is the case whether or not customers choose to make use of the facility to which the service and associated charge applies because that facility is maintained for their benefit and available to them to use if they chose to.
All links will open in a new tab
A sinking fund is a fund collected through the service charge to pay for future major repairs which may be unaffordable if requested in the year it was incurred (for example roof replacement, lift replacement). Funds are held within separate deposit accounts. In circumstances where it has not been possible to collect sufficient sinking fund contributions to fully cover the cost of major work, depending on the wording of the Occupancy Agreement, it may be possible to recover the balance through the service charge in the year the work is undertaken.
All links will open in a new tab
The Freeholder of a Section 106 development, also known as the superior landlord, is responsible for the services of running and maintaining the building and external areas. They usually appoint a third party managing agent to deliver the services. The costs are charged to Riverside as the Head Leaseholder and Riverside re-charge these to customers. Care and Support also have third party managing agent relationships.
In these scenarios, Riverside does not set or manage the service and subsequent service charges. Riverside will advocate for our customers and liaise between the customer and superior landlord and will be clear with customers about what it can influence and will inform customers on how to get more information or challenge costs in relation to service charges.
All links will open in a new tab
The Riverside Group has a policy of setting and varying service charges with a low-risk appetite and high-risk threshold. All tenures with a service charge regime must comply with this policy and the accompanying Service Charge Framework. Any variation in practice must be in line with the Occupancy Agreement terms. To ensure compliance and assurance of service charge setting, a Service Charge Process Assurance is completed annually.
In procuring service contracts, The Riverside Group uses a long-term qualifying works contracts over individual contracts to deliver services at Estate and Block level, whenever possible. This is to ensure that the Group’s suppliers comply with health and safety regulations, rather than just being the most cost-effective supplier. Riverside will apply for dispensation for emergency works, which will be delivered without section 20 consultation.
All links will open in a new tab
Customers can complain about Riverside’s adherence to the Service Charge Policy or other aspects of the Service Charge Setting process under our Complaints Policy which is published on the Riverside website.
Leaseholders and Tenants on variable service charges have the right to refer the service charge methodology to the First Tier Property Tribunal. Other customers have the right to refer their service charges to the Housing Ombudsman Service.
All links will open in a new tab
Riverside is committed to Equality, Diversity & Inclusion. We strive to be fair in our dealings with all people, communities and organisations, taking into account the diverse nature of their culture and background and actively promoting inclusion. This policy aligns with Riverside’s Equality, Diversity and Inclusion Policy and has been subject to an Equality Impact Assessment.
All links will open in a new tab