Rent and service charges

Your rent and service charges help us deliver the services that keep your home safe, secure and well looked after.

Service charges

Your service charge is a monthly payment that covers the upkeep and maintenance of shared spaces in and around your home — whether that’s a house, flat or estate. It’s separate from your rent or mortgage.

The amount you pay depends on your property type and the services you receive. You’ll find full details in your lease agreement, but it may include:

Cost of independent checks to make sure your service charge accounts are accurate and compliant.

Protecting your home against structural damage. Building insurance is a legal requirement for homeowners with a mortgage. Because Sparrow still owns part of your home, we arrange this cover for you – working with specialists to get the best value and protection. Our policy covers thousands of homes, so you benefit from strong cover at a competitive rate.

Like stairwells, hallways and entrances.

Keeping shared parts of your building working and in good condition.

Including alarms, emergency lighting, dry risers and fire door checks.

Keeping shared outdoor areas clean and safe, including grass cutting and path clearing.

Including fire safety, water testing, electrical inspections and compliance repairs.

Where applicable.

Covering the cost of our team who support you and manage your account.

Fees paid to external agents who manage your estate’s services.

A pot of money that builds up over time to help cover major works – like communal redecorations or repairs. It’s there to protect you from unexpected large bills.

Including bulk rubbish removal, bin maintenance and additional collections.

Such as communal electricity, water or telephone lines.

Service Charge Actuals 2024-2025

In February, you will receive an estimate based on what we expect it will cost to deliver services for the upcoming April - March. You then pay this amount monthly.

The following September, we compare our estimate to what it actually cost during that time – known as service charge actuals.

You will receive a breakdown for the services delivered by Sage Homes, your previous shared ownership provider, between 1 April 2024 and 31 March 2025.

If your September 2025 statement shows:

• we’ve spent less, you’ll get a credit

• we’ve spent more, we’ll ask you to pay the difference

We never profit from service charges. You only ever pay for the services delivered.

We’ll credit your rent account. If you pay by direct debit, your November payment will be reduced by the amount owed. If your account is in arrears, we’ll use the credit to reduce what you owe.

We’ll add the amount to your rent account.

If it’s less than £150, it’ll be added to your November payment.
If it’s more than £150, we’ll spread the cost: £150 in November, then monthly until the balance is cleared.

If this repayment plan doesn’t work for you, please get in touch and we can help.

Talk to us

Your rent

Your rent is based on the share of your home that Sparrow owns. If you buy more shares through staircasing, your rent will reduce. If you reach 100% ownership, you’ll stop paying rent altogether.

Buying more shares

To keep your home safe, welcoming, and secure we need to review your rent each year in line with inflation — just like other goods and services that have gone up in cost.

Your rent is reviewed at the start of each financial year (April).

We use the Retail Price Index (RPI) from the previous November and add 0.5%. This helps us keep pace with rising costs while staying fair and consistent.

Your rent will only increase once a year, in line with the law.

We’ll always write to you in advance to explain any changes to your rent or services — giving you plenty of notice before your bills change.