Service Charge to Be Included In 80% Rents

Service charges will be included in the new affordable rent regime. Confusion has surrounded service charges following the government’s announcement in October that it will allow landlords to charge rents at up to 80 per cent of market rent. Landlords have feared that if the charges were not included in the definition of affordable rent, the real cost to residents would be closer to market levels. The Homes and Communities Agency has refused to confirm whether the charges will be included, but a source confirmed they would be. Service charges cover services including cleaning, management costs, lifts, maintenance of entry phones and the provision of wardens and caretakers. Most of these charges are covered by housing benefit. Social rents do not include service charges, which are added on afterwards but they are included in definition of private and intermediate rents. Read more on Inside Housing.