Irwell Valley, ‘variable service charges’ and what you really need to know…

As some of you will be aware, Irwell Valley Housing Association are planning to implement an ‘Intention to vary your tenancy agreement and charge you a variable service charge’.

You’ll know this because they wrote to every tenant back in September, to ask your opinion and for feedback – but did you actually read the letter or just throw it in the bin?

I’m asking because, according to Irwell Valley, they received only 139 replies out of a possible 2580. That is just 5% of residents.

They also received a petition with 102 signatures on it. That’s 102 residents out of 2580 that currently live in property owned by the housing association.

It’s these statistics that make me think that perhaps you didn’t read that letter after all, if you had there would have been far more response from the letter in September and loads more signatures on the petition. That’s why I’m writing up this blog, to point out a couple of ways in which these changes will potentially affect you when they come in to effect on the 1st of April next year.

Firstly, Irwell Valley did ‘note and listen’ to all your responses and held a panel session in order to ‘review them in full’ – there were two resident board members present but at the time of writing I’m not sure who they are.

Either way, there were no comments relating to the variation in the tenancy agreement and they have decided to go ahead anyway, from April next year.

So, why are they introducing the charge? It’s because during a recent review it was pointed out that residents in Sale and Haughton Green weren’t paying for services that were being charged for in other areas and, to ‘ensure fairness’ they decided that you can pay it too.

At the panel it was raised that residents had queried what happens to the power generated by the solar panels on the high rises, as well as any income from the masts also on the high rises. Irwell Valley explained that the energy from the solar panels is used within the building to reduce the amount of energy used in communal areas and this will be reflected in the service charge to residents, although it will be negligible really. The income from the masts is not reserved only for the buildings they’re attached to – Irwell Valley say that this money is ‘used alongside rental income to invest in homes and neighbourhoods’.

Now for the really interesting stuff…

What exactly does ‘Variable Service Charge‘ mean anyway?  Each year Irwell Valley will assess how much they expect to spend on providing services, this means that the charge is estimated based on the previous year’s costs or estimated costs. At the end of the year you will receive a statement showing the actual costs and any over/under charges. The service charge will then be adjusted for the following year.

So, for the first year they will be working on estimates that could be quite reasonable. However, if there’s a spate of vandalism, houses being damaged, fencing being stolen or general stoopidity leading to damage, you can expect your service charge to go up and up and up…..

Interestingly, Irwell Valley say that the cost of the service charge could vary amongst similar properties – for example, looking at the blocks, ‘the number of repairs required to each block will change each year, e.g. one block could require 3 repairs to the door entry system in one year and another block could have no repairs, therefore the first block will have a higher service charge that year’.

In theory that could also mean various roads or sections of the estate could have differing charges – if you live in a patch that sees a lot of damage you could see a rise in your service charge. Hardly fair if it’s not you or yours causing the damage in the first place….

…which leads me to the next possible bone of contention.

If you are in receipt of full housing benefit/universal credit the service charge will be covered by your benefits and you shouldn’t be required to pay any additional cost yourself. You do need to inform Universal Credit yourself as Irwell Valley won’t be doing so, but if you receive housing benefit you don’t even need to do that as they will inform them themselves.

However, if you are working full-time or not in receipt of the benefits above, you’ll be expected to pay it yourself on top of your rent.

I pity those that are out at work and not receiving benefits when they come home to find the kid up the road has damaged yet more property that will increase the Service Charge that their parents will be unaware of because they don’t pay it themselves…..

Maybe this is a clever ploy by Irwell Valley to get residents to stand up to the few that spoil it for the rest, after all, what better way to bring it to your attention and bring about a little community action than to hit you in the pocket.

If you feel you may have money problems paying your service charge you should contact the Irwell Valley Income Management Team as soon as possible on 0800 035 22 11 – they will be able to offer you confidential help, advice and support.

Once you get the letter in February 2017 with the full breakdown of charges, Irwell valley will be holding a number of surgeries to allow you to meet with an IV colleague on a one-to-one basis and discuss your individual circumstances.

To try n end on a positive note, here’s a list of all the services you can expect to receive from Irwell Valley – please let us know if they fail to meet any of them n don’t forget to take a pic and post it on SaleWestVoice 🙂

1. Cleaning communal windows (blocks) – quarterly, in March, June, September and December
2. Communal cleaning (blocks) – monthly and includes all ledges cleaned, nosing on stairs and bannister rails cleaned, sweep n mop all hard floors, dust, damp wipe of skirting, clean of internal fixtures n fittings, check on external door and light fittings for cobwebs and clean all internal door glazing.
3. Communal Electricity (blocks) – you’re paying for it in your service charge so you can expect the communal area to be lit, warm and with a working lift.
4. Lift Service Contract (blocks) – again, it’s included in the charge so you should expect to have a fully operational lift that’s maintained monthly.
5. Repairs to Lift (blocks) – Irwell Valley have taken into consideration previous breakdowns etc so if there are more this year expect the charge to go up.
6. Estate Maintenance (EVERYONE) – This cost is included in the service charge and is divided by the total number of properties on the estate. The service is provided by Greenfingers and Nurture and you can expect grass cut fortnightly throughout the growing season, kerb edges and fence lines kept neat n tidy, grass areas to be edged during the dormant season, weeds removed in shrub beds and on hard surfaces as well as all shrub and hedges to be pruned to a neat ‘hedge like’ appearance. Remember that fly-tipping issues and bin emptying will remain responsibility of Trafford Council.

Irwell Valley will also be charging a 15% management fee which is calculated by taking the cost of each service and multiplying it by 15% – this is ‘to ensure services are delivered to a high quality n provide value for money, the cost of working out the service charge and the cost of collecting said service charge. Funny times eh 🙂