Housing term
Service charge
Sounds like: SUR-viss charj
A regular payment made by residents towards the cost of shared services, staffing and communal areas.
What it means
A service charge is paid on top of rent or ownership costs and funds things residents share: communal cleaning, gardening, lift maintenance, buildings insurance, the emergency alarm service and, in many schemes, staffing.
Charges may be fixed or variable. Variable charges change with the actual cost of services, and the landlord must account for how the money is spent.
Why it may matter
Service charges in sheltered and extra-care housing are usually higher than in general-needs housing because more services are shared. Understanding exactly what the charge covers — and how much it can rise — is one of the most important checks before accepting a tenancy or completing a purchase.
Example in context
A scheme's brochure might list rent of £160 per week plus a service charge of £48 per week covering the scheme manager, alarm system, communal heating and window cleaning.