Service charge consultation and feedback
A service charge covers the cost of maintaining communal areas and shared services linked to your home or the estate you live on. It is usually paid alongside your rent. Your tenancy agreement or lease sets out what your service charge covers and how it is worked out. Service charges are reviewed every year.
We want to make sure you receive good quality services that represent value for money. Throughout the year, we will give you chances to share your views on your service charge and the contractors we work with.
This page covers how and when we consult with you, ways to get involved, and our policies. If you need any help reading the information on this page, including translating or reading aloud, visit the accessibility section of our website for more information.
Section 20 consultation: Frequently asked questions
What is a Section 20 consultation?
A Section 20 consultation is a legal process we must follow before carrying out major works or entering into a long-term agreement that exceeds a cost threshold set by the government. It gives you the opportunity to review our proposals and share your feedback before we proceed.
Why is it called Section 20 consultation?
The name comes from Section 20 of the Landlord and Tenant Act 1985, which requires housing providers to consult with residents who pay a variable service charge before committing to significant works or contracts.
When does this process apply?
We must follow this process when:
- Works will cost more than £250 per property, or
- We are entering into an agreement lasting more than 12 months that will cost more than £100 per property
This applies to all residents who pay a variable service charge, where the cost of the works or service will be charged to that service charge.
What information will you send me?
The consultation usually takes place in two stages, sometimes three:
Stage 1 – We will write to you to explain what works or services we are planning and why. You will have an opportunity to make observations. Depending on the value of the work, you may also nominate a contractor.
Stage 2 – We write again to share the estimated costs and what they cover, how you can inspect the estimates, our responses to any observations received at stage 1 and how to submit further observations on the costs.
Stage 3 (if required) - We send a further notice to confirm which contractor we intend to appoint and when work is expected to start, along with the reasons for our decision; particularly if the chosen contractor was not the cheapest or was not one you nominated.
What happens with my feedback?
We take all feedback seriously, we read and consider every response we receive. Each consultation letter will include a summary of the feedback from the previous stage and explain how we have responded.
Can I get involved in the selection process for a contractor?
Normally yes. We offer several ways for residents to get involved in procurement decisions. If you nominated a contractor and they pass our preliminary checks, we will invite them to submit a tender for the work. We require that all contractors appointed to carry out works have accreditation to Safety Schemes in Procurement (SSIP) and an appropriate level of public liability insurance.
Visit our Get Involved page to find out more or contact our Customer Engagement team who can advise you on the groups and opportunities available.
How will I find out who has been given the contract?
We will confirm our proposed contractor in the Stage 2 or Stage 3 consultation notice.
My neighbour has received a consultation letter. Why have I not received a section 20 consultation letter?
There are a few reasons this can happen. It is usually due to the type of tenancy agreement you have, the nature of the works being carried out, or the type of service charge you have.
How do I find out if I have a variable service charge?
Your tenancy agreement will tell you the type of service charge that you have. You can call the Service Charge team on 01392 302138 or email us at Service.Charge.team@livewest.co.uk
Where can I find out more?
We want the Section 20 process to be as clear as possible. That's why we've put together a plain English guide and a short animation to walk you through it. Our full Section 20 policy is also available below.
You can also visit the LEASE website at www.lease-advice.org for independent advice and guidance on all aspects of the Section 20 process.
More information
Section 20 policy
View the full policy.
Section 20 animation
Watch our short video to learn more about the Section 20 policy.
Plain English guide to the Section 2 process
Annual service charge consultation: Frequently asked questions
What is the annual service charge consultation?
Each September, we write out to customers who have a variable service charge. In the letter we send two documents – statement of account for the previous financial year (April to March) and a proposed service charge budget (payable from the following April).
We will give you 30 days to review the two documents and to let us know if you have any comments or observations.
Why do you consult each year?
We are not required to send you the proposed service charge budget for you to review. We think that it is important that you review the proposed service charge budget and let us know if you have any comments about the services we provide. We are committed to continuing to give you the opportunity to review your service charge.
How can I give you my views and observations?
The annual service charge consultation letter will confirm the deadline by when you need to provide your comments and the contact details of the Service Charge Officer.
You can send us an email or contact us by telephone and we will record your feedback.
What do you do with my feedback?
We will wait until the consultation period has ended before we review all feedback. This gives us the opportunity to review your feedback and any from your neighbours at the same time.
We review every comment we receive during the consultation process. We will investigate any comments you have given us and liaise with colleagues if required. We will then assess if the proposed service charge budget needs to change following your feedback.
We will let you know what changes we are proposing to make to the service charge following your feedback.
My neighbour has received a consultation letter. Why have I not received an annual service charge consultation letter?
There are several reasons why you may not have received a service charge consultation letter. This will usually be due to the type of contract you have with us and the type of service charge that you have.
How do I find out if I have a variable service charge?
Your tenancy agreement will tell you the type of service charge that you have. We can also let you know the type of service charge that you have. You can call the Service Charge team on 01392 302138 or email us at Service.Charge.team@livewest.co.uk
What is the difference between a fixed and variable service charge?
At LiveWest, we have both fixed and variable service charges. The main differences with these are that variable service charges are calculated based on the actual costs which your scheme, block or estate has collected during the previous year.
Variable service charges can change each year based on the actual costs incurred the year before. Every year you will receive a set of accounts and a budget confirming the actual costs applied to your scheme and what we predict the costs will be for the following year, which is based on the actual costs incurred previously.
Fixed service charges are set at the start of the financial year and will not change throughout the year. Fixed service charges do not require us to issue budgets or accounts. Your service charge for the following year will be confirmed in your annual rent review letter.
When will you confirm my service charge each year?
We will write out to you at the end of February to let you know your new rent and service charge payable from April. This letter will confirm your new service charge.
Can I get involved in the monitoring of service charge contracts?
We offer many ways for customers to get involved in our work. You can find out more on our Get Involved page and the groups that you can join. Our Customer Engagement team can offer advice on the groups available to you.