How service charges are calculated
Service charges pay for the cost of work and services provided by Islington Council to your block and estate. Here's how we calculate your portion of the cost.
Service charges are calculated by block or estate, based on the services provided or works undertaken.
Most of the time, service charges are based on the idea that the level of benefit from works and services increases with the size of the property. That means that the bigger the property is, the more you pay of the overall amount for the block or estate.
From 1 April 2022, the council has been using a points system based on the number of bedrooms, the same method used by housing partners for PFI1 and PFI2 properties since 2007. This is a well-established method used by many public sector landlords.
The new method has been introduced with the return of the PFI2 stock to the council’s direct management. It will lead to fairer, more transparent service charges.
How the points-based method works
- Each property is allocated four points, one point each for living room, kitchen, hallway and bathroom.
- Bedrooms are given one extra point each. For example, bedsits would be given four points and a one-bedroom flat would get five points.
- The amount each flat pays is based on the number of points as a proportion of the total points in the block/estate/communal system.
- Whether a customer's service charge will increase or decrease depends on the number and size of the other properties in their building/estate.
- In a building of two- and three-bedroom flats, leaseholders of the two-bedroom flats will have slightly lower charges and leaseholders of the three-bedroom flats will have slightly higher charges. See the table below for an example of how the new method works compared to the old.
| Bedrooms | Percentage of block cost - old method | Cost per flat - old method | Points - new method | Percentage of block cost - new method | Cost per flat - new method |
|---|---|---|---|---|---|
| 1 | 22.5% | £90 | 5 | 19.23% | £76.92 |
| 2 | 25% | £100 | 6 | 23.08% | £92.31 |
| 3 | 25% | £100 | 7 | 26.92% | £107.69 |
| 4 | 27.5% | £110 | 8 | 30.77% | £123.08 |
| Total | 100% | £400 | 26 | 100% | £400 |
If you have any questions about how we calculate your service charges, please contact the officer named on the letter that was sent with your invoice or email us at homeownership@islington.gov.uk. You can find more information on our homeowner services page.
You can also get independent advice from the Leasehold Advisory Service (LEASE).