Your charges
Every payment you make helps us to deliver the services that keep your home safe, secure and well looked after. This page breaks down what you’re paying for, how it’s worked out, and what happens if anything changes.
Your service charge statement
Your annual service charge statement is on its way to you by post. It shows the cost of the services provided to you between 1 April 2025 and 31 March 2026. This statement shows what we estimated and what it actually cost side by side, so you can clearly see the difference and what it means for you.
How it works
When we set your service charge, we use the best information available to estimate what services will cost in the year ahead.
Once the financial year has ended, we receive the final cost information from managing agents and suppliers. We review these costs carefully ensure they have been allocated fairly and accurately in line with your lease.
Your 2025-26 annual statement shows the estimated costs and actual costs side by side, so you can see any difference. If costs were higher or lower than estimated, your statement will explain what this means for your account.
This means the services cost less than we estimated. You do not need to do anything.
We will apply the credit to your account. We may reduce your November monthly payment by the amount we owe you, use it to reduce any debt on your account, or keep it on your account and put it towards future rent and service charge charges.
This means the services provided cost more than we originally estimated for the year.
To help make this manageable, we will automatically spread the cost where needed. You do not need to do anything.
£150 or less: the amount will be added to your November 2026 payment.
More than £150: we'll spread the cost over future monthly payments, collecting no more than £150 in any one month until the shortfall has been covered.
There are no fees or interest charges for spreading the cost. If you'd like to discuss a different arrangement, we're here to help.
If the adjustment on your statement is higher than we'd typically expect, we'll contact you separately to explain it in more detail.
A member of our team will call you to talk through the costs, answer any questions you may have, and discuss the payment options available. You do not need to wait for our call, you can contact us at any time on 020 4524 5200.
Worried about money? Please talk to us as early as you can. We're here to help and will work with you to find a payment arrangement that's manageable for your circumstances.
You can also find details of free, independent support under Get in touch if you need support below.
If you’re worried about money or struggling to manage your rent or service charge payments, free and impartial help is available. You might find these resources useful:
MoneyHelper: Free, impartial guidance on money, debt, budgeting and benefits
Citizens Advice: Free, confidential and impartial advice. They can also help people understand their rights and options if they’re struggling with payments.
StepChange Debt Charity: National debt charity offering free, confidential advice and support, including debt assessments and repayment plans. Appropriate where customers are struggling with arrears or ongoing affordability.
National Debtline: Free, independent debt advice, with clear guidance on managing debts, priority bills (including housing costs), and dealing with creditors.
If you need support or want to talk things through, please get in touch with us as soon as possible. We’re here to help.
Your statement: FAQs
An estimate is a forecast made before the year starts, so it won't always match the final figure. The most common reasons for a difference:
The original estimate was set higher or lower than services ended up costing.
We've reviewed costs during the year — working with managing agents on up-to-date budgets, checking charges are accurate, and making sure costs are shared fairly between homes. Where something wasn't calculated correctly, we've corrected it.
Extra works or services were needed during the year — often in communal areas, building safety and grounds maintenance.
Buildings age. As homes and communal areas get older, repair, maintenance and compliance needs can grow.
The services shown on your statement are provided to your building, estate or shared areas. The total cost is shared between homes according to the terms of each lease.
Your statement shows:
the total cost of each service
the percentage of that cost that applies to your home, and
the amount you are responsible for paying.
This percentage is called your apportionment. It is set out in your lease and helps ensure costs are shared fairly among the homes that benefit from the service.
An independent firm of chartered accountants reviews the figures each year and confirms that service charge costs have been reasonably and properly accounted for. The actual costs are based on expenditure information from managing agents and suppliers, which Sparrow reviews to check costs are allocated fairly and in line with your lease.
Yes. As a leaseholder, you have the right to request information about the costs included in your service charge statement, including copies of relevant invoices and supporting documents.
Once we receive your request, we have up to 30 days to provide the information.
Some services, such as cleaning, grounds maintenance and buildings insurance, are provided under national or portfolio-wide contracts that cover multiple buildings and homes. This means invoices are often issued as a single charge rather than separately for each property. Where this applies, we may need additional time to identify and extract the information relevant to your building or estate.
We'll always provide the information available and keep you updated on the progress of your request.
You have the right to have anything on your statement explained, and the right to challenge it. The full summary of your rights and obligations is included with your statement — please do read it.
If you have evidence that shows that a service wasn't delivered, please let us know.
Usually, any credit on your statement will be applied to your rent account. This means you'll benefit from a lower payment or reduced future charges.
If you'd like your credit paid directly into your bank account instead, please let us know by 15 October 2026 and we'll be happy to discuss this with you.
Call us on 020 4524 5200 or email enquiries@sparrowsharedownership.co.uk — the earlier the better. Everyone's circumstances are different, and we'll talk through options with you. There are no fees or interest charges for any repayment arrangement. Free, independent money and debt advice is also listed further down this page.
Charges depend on your building, your property type and the services it receives. Two homes on the same estate can receive different services — for example, only some blocks have lifts, sprinklers or car parks. Your statement only includes services provided to your home, building or estate, and only your share of those costs.
You may notice that some fire safety services, such as AOV and smoke ventilation systems, fire alarms and emergency lighting, show an actual cost of £0 on your statement.
These services have not stopped and the costs have not disappeared. Instead, the costs have been combined and shown under the Health & Safety charge. A quarterly inspection is also included within this charge.
This means you'll see the total cost of these services in one place rather than spread across several separate lines.
Your statement covers the period you were responsible for charges under your lease. If you bought during the year, adjustments for the period before your purchase are usually handled through your completion process — if something doesn't look right, contact us and we'll check it.
Under the terms of the lease, any final balancing charge or credit is applied to the current leaseholder's account.
Your statement should be with you by 30 September 2026. If yours hasn't arrived within two weeks, call us on 020 4524 5200 and we'll arrange a copy. We can also provide it in braille, large print, audio or another language.
Shaped by customers
We worked with Sparrow's Customer Scrutiny Panel to improve how we explain service charges. Their feedback helped us make our communications clearer, simpler and more transparent.
Got feedback? Email feedback@sparrowsharedownership.co.uk.
Service charge descriptions
Every line on your annual statement is explained here — 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:
If you are claiming for Universal Credit, please note that not all charges may be eligible in your claim, most notably Buildings Insurance. As per the Universal Credit Regulation Legislation F2077, point 17 of the List of Ineligible Service Charges states that Buildings Insurance is not covered in the claim.
This fee covers the cost of working with the external agent who helps manage your estate — making sure services run smoothly and your shared spaces are well looked after.
Every year, an independent specialist reviews your accounts. It’s best practice across the sector and ensures your year‑end statement is accurate, fair and fully compliant.
This charge protects your home against structural damage. Building insurance is a legal requirement if you have a mortgage, and because Sparrow still owns part of your home, we arrange this cover for you. We work with specialist insurers to make sure you receive strong protection and good long‑term value.
If you need to make a claim, please contact Sparrow first. We’ll guide you to the correct insurer or loss adjuster, so your claim is handled quickly and accurately.
If you are claiming for Universal Credit, please note that buildings insurance is not eligible in your claim. As per the Universal Credit Regulation Legislation F2077, point 17 of the List of Ineligible Service Charges states that Buildings Insurance is not covered in the claim.
On‑demand visits to remove large items or fly‑tipped waste in shared areas. Proper waste removal helps keep your building safe, hygienic and free from fire risks.
Most councils offer two free collections a year. If you have a bulky item to get rid of, call them first.
Reactive repairs carried out in shared areas of your building and surrounding spaces.
Dry risers help emergency services fight fires in multi‑storey buildings. This charge covers bi‑annual servicing and testing to ensure its fully compliant and ready to use if ever needed.
The health & safety charge in your 2025-26 actuals statement covers the cost of the quarterly inspection visits carried out during that year.
From April 2026, inspections increased from quarterly to monthly. This change helps strengthen building safety and supports industry best practice. While this has increased the cost of inspections, it provides more frequent checks and helps ensure any issues are identified sooner.
These inspections include checks on:
emergency lighting
AOVs (automatic opening vents)
lightning protection (annual check)
block safety standards
solar panels (annual check)
communal fire doors
fire alarm systems
door entry systems
proactive identification of any repairs
We keep shared outdoor areas neat, safe and pleasant year‑round. Different tasks take place throughout the seasons.
You can learn more about what’s included here.
Routine servicing and safety checks to keep the lift running smoothly and reliably.
Your housing development may have an appointed managing agent who oversees services for the estate, building or car park.
If you need to raise an issue about a service delivered by your managing agent, please contact us for support.
Covers prevention and treatment of pest issues, assessed and managed case by case
A sinking fund is a non‑refundable reserve set aside for large, planned improvements to your building or estate over the long term. It isn’t used for day‑to‑day or reactive repairs — it’s there for bigger future works that help protect the condition and long‑term value of your home.
The fund is clearly defined and ring‑fenced. It stays with the property when you sell, helping maintain its market value and ensuring the next owner benefits from a well‑maintained building.
We want shared spaces — including corridors, stairwells, bin stores and cycle rooms — to feel clean, safe and welcoming. This charge covers routine cleaning.
You can view your cleaning schedule here.
This includes Electrical Installation Condition Reports (EICRs), which legally need to be completed every five years.
You’ll only see this charge if your test is due this year.
This covers electricity used in shared spaces such as hallways, lifts, door entry systems and communal lighting.
This is the cost for Sparrow managing your home. It covers the work our team does to support you day to day — things like preparing your estimated and actual service charges, managing your lease, setting up services when they’re needed, and answering your questions.
FRAs identify fire safety risks and ensure your building remains compliant. Most buildings follow at least a three year cycle, though frequency can vary based on expert recommendations. If you see this charge, it means your assessment is due this year.
Testing and maintenance to make sure the sprinkler system is fully functional and compliant.
Charges for water used in shared areas — such as external taps.
Regular testing and assessments to keep communal water systems safe.
Covers cleaning of windows in shared areas only.
You’re responsible for cleaning the windows for your home.
Managing your payments
The easiest way to manage and pay your rent and charges is via Direct Debit. You can set one up and view your payment account on My Sparrow.
Your estimate (2026-27)
This section is about the current year's estimate (April 2026 –March 2027) — not the actuals statement you've just received for 2025-26.
We estimate your service charges based on the services we expect your building, home or estate to need over the year. Our approach is designed to be fair and transparent, supported by Sparrow’s responsible procurement process and independent external audits that confirm our spending and charges are reasonable.
As a shared owner, you have responsibilities that sit alongside the services we provide.
Most importantly, you only pay for the services you receive — Sparrow does not make a profit from service charges. At the end of the financial year, we compare the estimated costs with the actual spend to make sure everything is accurate and only reflects services delivered.
If we've spent less than what we estimated, we’ll credit your account in November 2027.
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.
If your services cost more than what we estimated, we’ll add the amount to your account in November 2027.
If this repayment plan doesn’t work for you, please get in touch and we can help.
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.
Rent increases in affordable housing are shaped by a few things: government policies, what’s set out in your tenancy agreement, changes in the wider economy, and local market rents. This helps make sure rent stays fair and in line with what’s happening both locally and nationally.
Your rent goes up in line with annual inflation, just as set out in your lease. Sometimes, it may also reflect rising service charge costs. You’ll get a full breakdown of your new rent and service charges in your annual rent review letter (February).
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 - and this can’t be changed.
For 2026-27, your rent will increase by 4.3%.
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.
If you’re worried about money or struggling to manage your rent or service charge payments, free and impartial help is available. You might find these resources useful:
MoneyHelper: Free, impartial guidance on money, debt, budgeting and benefits
Citizens Advice: Free, confidential and impartial advice. They can also help people understand their rights and options if they’re struggling with payments.
StepChange Debt Charity: National debt charity offering free, confidential advice and support, including debt assessments and repayment plans. Appropriate where customers are struggling with arrears or ongoing affordability.
National Debtline: Free, independent debt advice, with clear guidance on managing debts, priority bills (including housing costs), and dealing with creditors.
If you need support or want to talk things through, please get in touch with us as soon as possible. We’re here to help.
Direct Debit update
AllPay, who manages your Direct Debit payments, is making a small update to how payments are processed. From now on, payments will reach Sparrow faster — moving from 12 working days to 5 working days. This helps keep everything running smoothly and gives you a more reliable, flexible payment experience.
You don’t need to do anything. Your Direct Debit will continue as normal, and the change won’t affect the amount you pay or when it’s taken.
If something goes wrong
Sparrow isn’t responsible for repairs inside your home. We're only responsible for repairs and safety checks in communal areas, in blocks of flats that Sparrow owns. In some cases, Sparrow may not own your building — if that’s the case, you’ll need to contact the third‑party owner instead - you can find out more info here.
If your estate has a managing agent that you pay for through your service charge, please report any issues directly to them.
If you want to make a buildings insurance claim, get in touch with our team. Contents inside your home are not included — you’ll need your own contents policy for that.
Still unsure? Get in touch and we’ll help.
Additional charges
We'll be open and clear about the costs linked to managing and supporting your home. These additional fees cover specific legal, homeowner, and alteration services. Because these services are delivered by a small, specialist Sparrow team, these charges help us provide timely, accurate and compliant support for all homeowners
Click the '+' button to find the current charges for the relevant services.
Service | Current Fee |
Transfer (100% Staircasing) | £390.00 |
Licence to Assign | £150.00 |
Notice of Assignment | £102.00 |
Notice of Charge | £102.00 |
Certificate of Compliance | £102.00 |
Deed of Variation | £150.00 |
Resale Buyer Mortgage Approval | £120.00 |
RX4 – Remove Restriction | N/A |
Service | Current Fee |
LPE1 – Management Pack | £180.00 |
LPE1 – Additional Queries | N/A |
Staircasing | £185.00 |
Transfer of Ownership | £136.00 |
Approval of Remortgage | £140.00 |
Approval of Same Lender Remortgage | N/A |
Pet Consent | N/A |
Service | Current Fee |
Alteration Request – Simple | £70.00 |
Alteration Request – Complex | £288.00 |
Retrospective Consent | N/A |
Arrange Surveyor’s Visit | N/A |