Why has my service charge increased, and what can I do?

A higher service charge can leave you wondering whether something has gone wrong. Perhaps the cleaning looks the same, repairs are still outstanding and the only obvious change is the amount you are expected to pay.

The most useful first step is to turn that concern into a few specific questions. You need to understand what the money is for, what the lease permits and what evidence supports the figures. That puts you in a much stronger position than simply saying the overall bill is too high.

1. Find out what kind of bill you have received

Check the period covered and the description on the demand. These three amounts can appear together, even though they serve different purposes:

• An advance service charge: your contribution towards estimated spending for the coming accounting period.
• A balancing charge: an adjustment following a comparison between earlier estimates and actual expenditure, where the lease provides for this.
• A reserve-fund contribution: money collected towards future expenditure, where the lease allows it.

A demand combining all three may look like a dramatic rise in annual running costs when part of it relates to last year or future work. Ask for each element to be separated before comparing it with your previous bill.

Also check whether you are comparing like with like. An annual budget should not be compared with one quarterly instalment. A building-wide total is different from your individual share. A forecast and a set of completed accounts describe different things.

2. Ask which costs explain the increase

Request the new budget alongside the previous budget and the latest available actual expenditure. Work through the larger changes first. Small increases across several lines can add up, but a substantial movement in one item is usually easier to investigate.

A useful explanation links the number to an actual change. “Costs have risen” does not tell you whether the building has a new contract, a substantial repair or a different maintenance plan. Ask for the underlying reason, rather than repeatedly requesting a general justification.

For example, if cleaning has increased, ask for the old and new annual prices and the service specification. That allows you to distinguish a price rise for the same work from a decision to clean more frequently. Both may need explaining, but they are different questions.

3. Check the lease and your share

The lease is the starting point for what can be recovered, how costs are divided and when payments fall due. The fact that an invoice exists does not, by itself, establish that every leaseholder must contribute to it.

Locate the clauses and schedules dealing with services, repairs, insurance, management and payment. Look for separate schedules for your block, the wider estate or particular facilities. Your percentage may differ between those schedules.

Ask the agent to identify the provision relied on if a charge is unfamiliar. If the explanation depends on an uncertain interpretation, specialist advice may be needed. An article cannot determine what a particular lease means without seeing the document and the surrounding arrangements.

For variable service charges, section 19 of the Landlord and Tenant Act 1985 limits recovery to costs reasonably incurred. Services and works must also meet a reasonable standard. Advance payments must be reasonable. These tests are more useful than assuming there is a universal annual cap on increases. Read section 19.

4. Get the information behind the figures

You can begin with an ordinary written request for the budget, accounts and explanation you need. Be clear about the accounting year and cost headings. Asking for every record connected with the building can make it harder to identify the issue that matters.

There are also statutory information rights. Under section 21 of the 1985 Act, you can request a summary of relevant service-charge costs for the last accounting year, or the preceding 12 months where accounts are not kept by accounting years. The response deadline is one month after your request or six months after the accounting period ends, whichever is later.

After receiving a qualifying summary, section 22 provides a route to inspect supporting accounts, receipts and documents. The written request must be made within six months of receiving the summary. Facilities must be made available within one month and remain available for two months. These rights have a defined scope; they are not a promise of immediate access to every document. LEASE explains the information rights and deadlines.

A practical first message you can adapt

Subject: Service charge explanation for [flat and building]

I have received the demand dated [date], covering [period]. Please explain the change from [previous amount] to [new amount].

Please separate any advance charge, balancing adjustment and reserve contribution, and provide the budget breakdown alongside the previous budget and latest available actual expenditure.

My particular questions concern [identify up to three headings]. Please explain the reason for each change, the relevant service specification or work, and how my contribution has been calculated under the lease.

Please confirm when I can expect a response and which documents are available to support the explanation.

Thank you,
[name and flat]

This is an informal information request, not a prescribed statutory notice. Use a suitable formal request if you intend to exercise a specific statutory right.

5. Separate future planning from today’s service

A higher reserve contribution may be sensible if substantial work is approaching and earlier contributions were insufficient. A lower bill is not automatically better if it leaves the building unable to maintain its roof, lift or external fabric.

Ask what the fund is intended to pay for, when the work is expected and what estimates support the contribution. A reserve should be connected to the building’s needs and the lease, rather than treated as an unexplained extra amount. Read about reserve and sinking funds.

Major works can also involve section 20 consultation. Broadly, consultation requirements arise where qualifying works would cost any one leaseholder more than £250, or a qualifying agreement lasting more than 12 months would cost any one leaseholder more than £100 in an accounting period. The detailed rules, exemptions and any tribunal dispensation matter. A consultation problem does not automatically mean the entire bill disappears. GOV.UK explains consultation and service-charge disputes.

6. Choose the right route if the explanation is inadequate

Keep a short record of each disputed item: the amount, your concern, the document supporting it and the outcome you want. You may be seeking a corrected allocation, evidence that work was completed, a better explanation or a determination that an amount is not payable.

A service complaint and a dispute about legal liability are different. Follow the agent’s complaints process for matters such as unanswered correspondence or poor complaint handling. A redress scheme may be relevant to service failures, but it does not replace the tribunal’s role in deciding whether a service charge is reasonable or payable.

For variable charges, the First-tier Tribunal in England can determine liability and reasonableness within its jurisdiction. Consider the documents, the amount at stake, application costs and any potential costs exposure before proceeding. Depending on the circumstances, applications under section 20C and paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 may be relevant to restricting recovery of litigation costs. Read the tribunal’s guidance on service charges and costs.

Older expenditure may raise the separate 18-month rule under section 20B. Its application depends on when costs were incurred and whether the landlord gave a qualifying notification within time. The invoice date, payment date and demand date should not be treated as interchangeable without checking the circumstances. Read about recovery of costs and the 18-month rule.

Should I stop paying while I dispute the bill?

Do not assume that raising a complaint suspends payment. Withholding a sum that is properly due can lead to arrears action and additional costs. Get advice before deciding not to pay.

Payment alone does not amount to agreement or admission under section 27A(5). You can explain in writing which items you dispute, but a reservation of rights does not resolve every legal issue. Take advice if you are considering a settlement, admitting liability or facing proceedings. Read section 27A.

Your next step: build a clear evidence pack

You do not need a perfect bundle before asking an initial question. A demand, a budget and a specific concern are often a useful place to begin. Our service-charge overview explains the wider context. If the underlying concern is long-term control, the Right to Manage overview explains a different possible route.

When you want to talk it through

Want to understand an unexpected increase?

Tell us which part of the charge concerns you, the accounting period and what explanation you have received. We can discuss whether practical management or consultancy support would help.

Discuss your service-charge question↗

Keep exploring

Put this question in context

For the wider picture, explore Service charges explained.

• Why are service charges so high? What your block budget pays for↗Understand what a block service charge pays for, why buildings have different costs and how to assess value without relying on an arbitrary price benchmark.
• Reserve funds: is your block planning enough for future repairs?↗Learn how a leasehold reserve fund should relate to future repairs, existing commitments, contributions and consultation, with a simple funding-gap example.
• Section 20 major works: what the notice means and how to respond↗Understand a Section 20 major-works notice, consultation stages, contractor nominations, estimates, reserve funds and what to do if consultation is missing.