Service charge

Understanding your service charge

Your rent and service charges are one of the most important payments you make, it helps keep a roof over your head and supports the services we provide to you and your neighbours. If you’re struggling to pay, please don’t wait, our friendly team is here to help with advice and support.

In some cases, you may pay extra for services linked to your tenancy, these are called service charges.

Service charges cover the cost of things like cleaning, grounds maintenance, lighting and other work that keeps shared areas safe and well maintained. They are separate from your rent. 

Service charges are not designed to make a profit. They are based only on the actual cost of providing the service. Social landlords must make sure charges are good value for money, meaning services should be efficient, reasonably priced and meet residents’ needs. 

What Makes Up Your Rent

Your rent charge includes:

  • Base Rent – the standard charge for your home
  • Service Charges – if applicable, these may include:  
  • Communal Cleaning
  • Grounds Maintenance 
  • Communal Lighting
  • Lift Maintenance
  • Door Entry & Access Control
  • Fire Safety Systems
  • Caretaking or Estate Staff
  • Communal TV Aerials or Satellite
  • Systems
  • Waste Services
  • Pest Control
  • Communal Heating or Hot Water
  • Communal Parking Facilities
  • Community Centres/Communal
  • Areas (only accessible by a controlled group of tenants)
  • Sewage
  • Pond Maintenance
  • CCTV/24-Hour Security – Where
  • Required
  • Maintaining Aids and Adaptations
  • Insurance
  • Intensive Housing Management
  • Management Company Costs
  • Administration Fees

You can view a full breakdown of your charges by logging into your Tenant Portal.

Pay your service charge online

It’s easy to pay your service charge online via the Shropshire Council website.

  • Have your rent account number ready. You’ll be asked to enter this as your reference. Have your invoice number handy to in case you need it.
  • Follow the link to Pay Online.
  • Select Council Housing Rent from the dropdown menu.
  • Click ‘Pay Online’ to continue to the secure payment page. 

Here is some further information about how rents are set that you may find helpful: 

Social rent is a lower‑cost type of rent offered by councils and housing associations. It is designed to be genuinely affordable and is usually much lower than private market rent.

How Social Rent is Set 

  • Social rents are initially set at “Target Rent” (also known as Formula Rent) when a property is first let.  
  • Target Rent is not chosen locally—it is calculated using a government prescribed formula.  

The formula considers: 

  • Local market rents 
  • Inflation (CPI) 
  • National rent caps 

After the initial setting, rents are then uplifted annually based on inflation, regardless of a change in tenancy

Social Rent is intended to:

  • Provide affordable and secure housing for local residents 
  • Ensure rents remain consistent and fair across similar homes 
  • Keep the Housing Revenue Account (HRA) financially sustainable over the long term (as 90% of the rented homes under Shropshire Council fall into the Social Rent category). 

If you have a Social Rent tenancy, your service charge breakdown explains the cost of any services you receive that aren’t included in your rent. We estimate these costs by looking at what the service has cost in previous years and considering what may be needed in the year ahead.

You can find more information about how rents are set here: Rent Standard and Guidance

Some homes — such as new builds or higher-value properties, are let under a different system called Affordable Rent.

Affordable Rent homes are let at up to 80% of market rent. This type of rent is designed to remain affordable for households, while also helping to generate income that supports the development of more affordable homes in the future. It’s usually offered on selected general needs properties, mainly houses, and only applies when a new tenant moves in. Existing tenants are not moved from Social Rent to Affordable Rent.

If you have an Affordable Rent tenancy, your communal service charges are included within your rent. This means you won’t see a separate breakdown for these shared services. You may still receive a breakdown for any charges linked to personal use, such as heating and hot water supplied to your home, or the garden assist scheme.

In addition to your rent, you may also be charged for certain services linked to your home. These are called service charges, and you will only be charged if you receive the service.

Service charges are calculated on a fixed basis, which means they stay the same throughout the year. This makes them more predictable and helps protect tenants from sudden changes in cost, such as spikes in energy prices. For example, tenants paying communal energy costs would have been protected from the initial rise during the energy crisis.

Annual service charges vary depending on your home and the type of tenancy you have, including social tenants, private tenants, shared owners and leaseholders.

We estimate these charges by looking at how much services have cost in previous years and then working out the likely cost for the coming financial year. Homes are grouped into blocks or estates when charges are shared. Service charges are apportioned according to what is set out in your tenancy agreement, lease or any other legal document relating to your home, and based on the services you receive.

Like your rent, your service charges are reviewed each year, and any changes will be shared with you at the same time as your rent notification.

If you receive Universal Credit or Housing Benefit, some service charges may be covered — these are known as eligible charges. These typically relate to communal services, such as communal electricity or cleaning. Other charges are ineligible, such as personal heating or hot water, or the garden assist scheme, and these are not covered by Universal Credit or Housing Benefit.

Description of Services

Our description of services below is here to help you understand the items on your service charge breakdown. If anything doesn’t look right or you’d like to query a service or charge, please get in touch with us and we’ll be happy to help.

Buildings Insurance
This covers the cost of insuring the building (where this applies under your lease). We insure it on behalf of leaseholders against things like fire or flood. Leaseholders and shared owners are recharged for their share of this cost.


Boiler Servicing
For Shared Ownership homes, this covers the annual service of the boiler inside your property. A qualified engineer completes the service and routine safety checks, and we handle the administration and records. This helps keep your boiler safe, efficient, and less likely to break down.


Communal Electricity
This is the cost of electricity used in shared areas, for example lighting, lifts, communal boilers, air source heat pumps or water pumps. Charges are based on the bill from the energy provider.


Communal Gas
This covers the fuel used in communal areas, such as hot water for shared bathrooms, laundry rooms or kitchens in sheltered schemes.


Communal Water
This is the cost of water used in shared facilities such as communal bathrooms, kitchens or laundry rooms in sheltered schemes.


Sewage
This applies if your home is not connected to the main sewer system. It covers the servicing, maintenance and any repairs needed to the private waste water or sewerage system that serves your property.

Grounds Maintenance
This is the cost of looking after the shared outdoor areas around your home. It includes grass cutting, maintaining flowerbeds and trees, and other estate grounds work. This may be carried out by our Grounds Maintenance team or external contractors.


Intensive Housing Management (IHM)
IHM is an enhanced level of housing management for tenants who need extra support to manage their tenancy and day‑to‑day living in supported or temporary accommodation. It goes beyond standard housing management and includes more frequent, hands‑on support tailored to residents who may be more vulnerable. This charge covers the additional cost of providing that support.

Television Aerials
This covers the cost of renting, maintaining and servicing a communal TV aerial where one is provided for the block.


Communal Window Cleaning
This covers the cleaning of communal windows in the block. It doesn’t include the windows in your own home.


Communal Cleaning
This is the cost of cleaning shared areas such as hallways, staircases and internal pathways. It may also include a contribution towards cleaning equipment and materials.


Fire Protection
This covers the servicing and maintenance of fire safety systems such as emergency lighting, alarms, sprinklers and automatic opening vents. We have a legal duty to keep our buildings safe, and we follow a risk‑based approach to make sure inspections and servicing meet regulations and wider safety guidance.


Managing Agent Services
In some areas, Shropshire Council doesn’t own the freehold and a managing agent provides services on behalf of the freeholder. The costs charged to the Council by the managing agent are recharged to you in line with your lease or tenancy agreement.


Laundry Service
This covers the servicing and repair (or replacement, if needed) of shared washing and drying equipment provided for residents.


Aids & Adaptations
This covers the servicing and safety checks of any adaptation equipment installed in your home, such as stairlifts, ceiling track hoists, lifts or wash/dry toilets. It includes routine servicing and any required LOLER inspections to make sure your equipment stays safe, compliant and working properly.

Administration Fees
A 15% administration fee is added to service charges. This helps cover the cost of arranging and managing each service. For example, the admin charge for cleaning contributes to the time spent setting up contracts, monitoring the quality of work and processing invoices.

What if I have a query about my service charges? 

If you’re unhappy with a service you’ve received, please get in touch with us. We’ll take the details of what hasn’t met your expectations and pass this to the relevant team, who will contact you to discuss it further.

If you’re not satisfied with the outcome, you can escalate your concerns through our formal complaints process.

If you have a question about the amount you’re being charged, you can also contact us. We’ll take the details of the charge you’re querying and ask our Service Charge Team to look into it. They’ll review the charge and explain why it has been applied and what it covers.

If you’re still unhappy after receiving an explanation, you can follow our complaints process to take the matter further.