A block's service charge is the sum of its running costs, insurance, the managing agent's fee and the reserve fund, all including VAT because a residents' company cannot reclaim it. For flats outside London the English Housing Survey 2023-24 found a median of £1,300 a year. Our estimator works it out line by line for an Essex building in six questions, with our fee of £240 a flat plus VAT shown separately.
01Estimate your service charge
02Where the figures come from
- Our working figures for Essex in 2026, the same ones we use for developers' draft budgets, before any quotes. A real budget replaces every line with a quote for your building.
- VAT is included on every contractor line, because a residents' or right to manage company cannot reclaim it. Estimates without it look cheaper than the bill will be.
- Our fee is shown on its own line, at the rate we publish, with nothing added for the things most agents charge extra for. See every charge we make.
- Buildings insurance is only counted if you enter your premium. It depends on the rebuilding cost of your building, so any figure we guessed would be wrong.
- The comparison is official. The English Housing Survey for 2023-24 found leaseholders in flats outside London paid a median of £1,300 a year and a mean of £1,561, and 62% of leaseholders thought their charge was too high.
03What your board would see
Every building we manage runs on Servanda, software built and owned by our director. Directors sign in to see what is happening on their building, not wait for a report.
A sample building with made-up names, shown exactly as a director sees it.
- Invoices: nothing is paid until the board has seen it, and every decision is recorded.
- Attendance: every contractor visit, timed and located, with photographs.
- Works: every job from quote to sign-off, with before and after photographs.
- Compliance: every check on the building, the fire risk assessment, alarms, lifts, electrics, in plain words, red, amber or green.
- Resolutions: the board votes in the portal and the minute prints itself.
04Check it against your real accounts
An estimate tells you what a building like yours should cost. Your accounts tell you what yours does. Send us last year's accounts and this year's budget and we send back a free two-page check: the fee per flat against what others publish, what was charged on top, the insurance and the reserve fund, and the questions worth asking.
05Questions
How much should my service charge be?
It depends on what the building has: lifts, shared halls, grounds and its size. The English Housing Survey 2023-24 found a median of £1,300 a year for flats outside London. Our estimator works out a figure for your building line by line in six questions.
Why is my service charge so high?
Usually insurance, lifts, major works or the reserve fund, and sometimes fees and extras on top of the management fee. Compare your charge with our estimate, then send us your accounts for a free check that shows where the money goes.
Does the service charge include VAT?
Contractors' invoices include VAT and a residents' company cannot reclaim it, so the charge to leaseholders includes it. Any estimate without VAT will look cheaper than the bill.
Is buildings insurance part of the service charge?
Usually, yes: the landlord or company insures the building and recovers the premium through the service charge. The premium depends on the rebuilding cost, so ask for the schedule and any commission paid.
06Guides for directors
- Service charge estimate
- RICS regulated block managers in Essex
- The reserve fund
- Service charge arrears
- Service charge accounts
- Directors' duties in an RMC
- How to choose a managing agent
- A free service charge check
- Service charges explained
- Buildings insurance for blocks
- Fire safety in blocks of flats
- The Directors' Library
- What is block management?
- How to change managing agent
- Residents' management companies
- Right to manage
- Block management fees
- Section 20 major works
- New-build estate fees
- Estate management in Essex