If you rent a flat, you may be asked to pay service charges on top of your rent. Service charges cover the cost of maintaining shared areas and services in
On this page
- What is a service charge?
- Who pays service charges: tenants or leaseholders?
- Must service charges be reasonable?
- Can I challenge a service charge?
- What right do I have to information about service charges?
- Are service charges the same as ground rent?
- When should I contact Support for Tenants?
- Sources
- Related articles
If you rent a flat, you may be asked to pay service charges on top of your rent. Service charges cover the cost of maintaining shared areas and services in the building. Understanding what can legally be charged and how to challenge excessive charges is important. Here we set out the rules.
What is a service charge?
A service charge is a payment made by tenants or leaseholders to cover the cost of services provided for the building or communal areas. These services can include:
- Building maintenance and repairs
- Cleaning of communal areas
- Gardening and grounds maintenance
- Buildings insurance (the landlord's insurance for the structure)
- Management fees charged by a managing agent
- Utilities for communal areas (lighting in corridors, etc.)
- Major works and improvements to the building
Service charges are in addition to rent. They vary enormously between properties.
Who pays service charges: tenants or leaseholders?
Service charges are most commonly associated with leaseholders (people who own a long lease on their flat). However, some private rental tenancy agreements also include a service charge element, particularly in blocks with managed communal areas.
If your tenancy agreement says you must pay a service charge, you are obliged to pay it subject to the legal rules below.
Must service charges be reasonable?
Yes. Under the Landlord and Tenant Act 1985, service charges must be:
- Reasonably incurred, you do not have to pay for services that have not been properly provided or for work that was not necessary
- Of a reasonable standard, if work was carried out, the standard must be reasonable for the cost charged
- Backed by proper accounts, you have a right to inspect accounts and receipts relating to service charges
Can I challenge a service charge?
Yes. If you believe a service charge is unreasonable, you can apply to the First-tier Tribunal (Property Chamber) for a determination of whether the charge is payable. The Tribunal can reduce or disallow charges it finds to be unreasonable.
You can also withhold service charges if you genuinely believe they are not payable, but this carries the risk of proceedings against you if you are wrong. Getting advice before withholding payment is important.
What right do I have to information about service charges?
Under the Landlord and Tenant Act 1985, you have a right to:
- Receive a written summary of the costs that make up your service charge
- Inspect accounts, receipts, and other documents supporting the service charge
If the landlord does not provide this information within a reasonable time when asked, they may not be entitled to apply for payment of the charge until they do.
Are service charges the same as ground rent?
No. Ground rent is a separate payment due under a long leasehold arrangement. For recent leaseholders (since June 2022), ground rent has been limited by law. Service charges are different, they cover actual services and must be reasonable.
When should I contact Support for Tenants?
We handle housing disrepair claims. If you are paying service charges that include maintenance but the communal areas or your flat are in disrepair your landlord has failed to fix, you may have a claim.
Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.
Sources
Related articles
We review every guide at least twice a year and update it when the law changes. If you spot something out of date or wrong, email help@supportfortenants.co.uk.
Reviewed against current housing law for England and Wales as at 15 June 2026. Checked by our SRA-regulated panel solicitors. This is general information, not legal advice for your specific case. Any compensation figures or ranges shown are illustrative only and not guaranteed; every case is different.
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