Our service charges
In 2006 following a review of how we manage our service charges, and based on feedback from occupiers and the best practice guidelines of the new Service Charge Code, we improved service charge communications and transparency of costs
We now aim to provide all occupiers with the following service charge communications to ensure that they receive clear and concise data to give them comfort on cost control. We provide three key service charge communications to occupiers: the annual reconciled statement of accounts, the mid-year forecast and the budget pack. Occupiers are also notified by managing agents, at any time during the year, if the total service charge to the year end is likely to exceed the budget by more than 2%.
Fig 1: Improving consultation and timely communication of information to our occupiers
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Annual reconciled statement of the service charge account (by 4th month- July) |
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Mid-year forecast (by ninth month- December) - Review of expenditure in the first six months of the financial year. - Forecast of expected total costs to the end of the financial year. - Indicative budget for the following year, highlighting key issues affecting costs. This forms the basis of budget consultations between occupiers and managing agents during December and January, giving occupiers the opportunity to seek clarification on longer term costs and to raise concerns arising from the information provided. |
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Budget Pack (by 11th month- February) - Indication of service charge costs for the coming three years, highlighting key drivers which may impact costs and standardised line item cost categories in accordance with the new Service Charge Code. - Statements of policy in relation to management fees, procurement, commercialisation income (if applicable) and treatment of interest income and expense from the service charge. |
In 2006 British Land provided financial support for the publication of the fourth edition of the IPD’s International Total Occupancy Cost Code. This Code is designed to enable occupiers to carry out more effective benchmarking of total occupancy costs across their portfolios and supply chains.
2007 feedback from occupiers
“We need greater levels of transparency around how the service charge is communicated and what's driving the increase in cost.”
“We would like more face-to-face meetings so that when they are sorting out the charges they can run through them with us.”