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Service Charges: Qualifying Long Term Agreements

10 April 2013

Registered Providers of Social Housing (“RPs”) now provide residential tenants with more services than they ever did .This has resulted in somewhat of a shift over recent years.

Service Charges, Qualifying Long Term Agreements and Consultation

Previously RPs charged a fixed service charge. Tenants were informed at the beginning of the financial year what their service charge would be and that was what they were charged whether the charge covered the RP’s costs or otherwise. With the increase in services provided by RPs many have moved from charging a fixed service charge to a variable service charge. This has brought with it the need to comply with various statutory regulations in respect of service charges, including the need to consult before entering into Qualifying Long Term Agreements. This has a wide application, but one area that has become increasingly prominent is that of the installation of communal heating systems, such as CHP (Combined Heat and Power). When installing such systems what should RPs consider?

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