Service charges including major works
As a home owner, under the terms of your lease or transfer document, you have a responsibility to contribute towards the cost of work and services provided by Islington Council to your block and your estate.
The annual service charge includes services such as caretaking, day-to-day repairs and other charges such as building insurance premiums and ground rent. They are your share of the cost of work and services provided by Islington Council to your block and/or estate that you have to pay under the terms of your lease or transfer document.
Please read our invoice frequently asked questions (FAQ) document (or this version if your property was previously managed by Partners) for more information about these charges.
Major works are repair, replacement and improvement works (such as replacing lifts or windows) where the charge to any home owner is £250 or more. We consult home owners about major works before they are carried out. We have a number of payment options for these works.
How costs for services and works are split between properties on a block or estate
- 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.
Explaining the points-based method of calculating charges
- 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).
Ways to pay
Direct debit
The easiest way to pay your annual service charges and major works charges is by monthly direct debit.
Please also read our installment plan terms and conditions.
Online
Pay your service charges by phone, using a debit or credit card
- 0800 694 3344 - (freephone) 8am-8pm Monday-Friday and 8am-12 noon Saturday.
- 020 7527 8000 - anytime automated telephone service
Disputing your service charge
We always aim to provide a high quality service, but if you disagree with your council homeowner service charge, you can raise a dispute.
