Rent and service charges

What is rent?

Rent is a regular or contractual payment which is paid to a landlord in return for the use and occupation of its premises.  

It is a resident’s responsibility to make sure the rent is paid. This applies regardless of whether the payment is made directly or indirectly from a resident’s bank account.  

What is a service charge?

Service charges are payments that a tenant or leaseholder must pay for the cost of services provided by a landlord. There are 2 main types of service charges the Ombudsman sees complaints about:  

1. Variable service charges: These are charges that change based on the costs incurred by the landlord. The landlord can alter the charge depending on costs incurred, but it must give you notice of the variation. 
2. Fixed service charges: There is no definition of a fixed service charge. These are charges set by the tenancy or lease and not based on the actual cost of the service provided. A fixed service charge is set by the landlord at the start of the lease or tenancy agreement. 

Complaints we can consider 

We can consider complaints about the management of rent or service charge accounts. If you are unhappy with the way your landlord has handled a charge, you should let it know.  

The landlord should provide you with any information you require to do with charges, for example rent statements or breakdown in costs.  

If you do not think the landlord is handling your rent or service charge account appropriately you can make a complaint to it.

We can look at complaints about:   

• how a fee has been worked out  
• a refund request  
• the level or standard of service provided for a fee  
• the response to a request for information about a charge (not including where a request has been made under the Freedom of Information Act) 
• a landlord’s handling of your enquiry or complaint about rent or service charges  

A landlord must be able to provide clear information about a charge that is payable and explain: 

• its power to claim the charge under the tenancy agreement or the lease  
• whether the charge is fixed or variable  
• what the charge is for when general terms are used such as ‘maintenance’  
• the level of the cost  
• when the charges were increased/decreased and why  

Landlords must provide residents with clear information about service charges payable at the tenancy sign-up or during the conveyancing process by having clear documentation and answering clear questions. 

Complaints we are unable to consider

We cannot decide whether someone is paying too much in rent or service charges or reasonableness of a charge. 

If your financial situation changes or you have issues paying your rent, you must speak to your landlord straight away. Your landlord should be able to support you to get financial help and signpost you to agencies that might be able to help you. 

If you have a complaint about how your landlord handled a charge and you are unsure if we can consider your complaint, please send us a copy of your landlord’s stage 2 complaint response to the issues you have raised, and we will consider whether we are the right service.  

Alternatively, if you have made a complaint to your landlord and it has not responded, you can use our online webform to get help with your landlord’s complaint process.

Online complaint form

Affordable rent schemes

Registered providers of social housing (RPs) in England including local authorities and private registered providers of social housing (PRPSHs) with certain funding agreements can charge affordable rent – which is up to 80% of market rent. 

These rents are required to comply with the Regulator of Social Housing’s rent standard. We cannot determine whether the level of rent is affordable or how social housing providers set or increase rent amounts.

For more information about the rent standard and guidance you can go to the gov.uk website.

 Rent Standard and Guidance - GOV.UK  

We cannot make decisions on whether the level of rent or an increase in rent is too high or reasonable.  

If you rent your home from a social housing provider housing association, housing cooperative, ALMO (Arm's Length Management Organisation) or tenant management organisation and think your rent is too high, you can apply to the First-Tier Tribunal (Property Chamber). 

First-tier Tribunal (Property Chamber) - GOV.UK 

If you rent your home from your local council and think your rent is too high, you can challenge this through the courts (known as a judicial review). 

Local authority rent and rent increases - Shelter England

Dealing with a rent increase - Citizens Advice  

Dealing with a rent increase if you claim benefits - Shelter England  

If you are a leaseholder or shared owner, the level and frequency of rent increases should be detailed in your lease agreement. For advice about the terms of your lease, you could contact the Leasehold Advisory Service.  

The Leasehold Advisory Service (lease-advice.org)  

Service charges are payments that a leaseholder or resident must pay for the cost of services provided by a landlord. 

The First Tier Property Tribunal may consider a dispute about the level of a variable service charge but cannot consider fixed service charges as these charges are a contractual obligation between the landlord and the resident or leaseholder.  

A dispute in respect of the level or reasonableness of a fixed service charge should be referred to the court as they can decide if repairs are necessary and beneficial to all leaseholders when assessing the reasonableness of service charges. 

Your council or housing association must give you a legal notice if they want you to leave. 

It is called a 'notice seeking possession'.  

We cannot consider complaints about a landlord’s decision to issue a notice seeking possession or if you have been evicted from your home. This is because the legal proceedings mean we are unable to get involved. 

Your landlord should provide support and signposting for help if you are at risk of losing your home due to arrears.  

More information on Shelter website