Barnet council tenants face a new management fee of up to 15% on service charges from April 2027. Consultation runs from 2 November to 18 December.
Barnet Council tenants could pay a new management fee on top of their service charges from April 2027. The fee would be capped at 15% of the cost of the services each home receives. Some services that have never carried a separate charge could also start to be billed.
A six-week consultation opens on Monday 2 November and closes on Friday 18 December. It covers council tenants in about 9,177 homes. Leaseholders are not included.
The council’s Executive Director Growth authorised the consultation on 29 October. The delegated decision was published on 30 October. The Barnet Group, which runs Barnet Homes, will carry out the consultation on the council’s behalf.
What is being proposed
The tenant consultation pack sets out the changes. They include:
- a separate management fee of up to 15% of the relevant service costs, to pay for arranging, checking and administering those services
- itemised bills, with each service shown as its own line instead of one combined sum
- a fixed annual charge, set from a budget before each year starts
- no year-end top-up or refund: if the council spends more or less than budgeted, the difference feeds into a future year’s charge rather than your account for that year
- service mapping, so a home is charged only for services it receives or benefits from
The decision report says the consultation includes “charges for services that have historically been provided without a separate charge”. It calls the changes “significant”.
The pack says the council has not charged a management fee before. In its words: “we have not separately charged residents a management fee for doing so.”
What the council expects to raise
The business case attached to the decision puts numbers on it. It forecasts extra annual income of between £0.66 million and £1.35 million, depending on the fee level finally approved.
The management fee alone is modelled, after an allowance for empty homes, at:
| Fee level | Modelled income a year |
|---|---|
| 5% | £344,190 |
| 10% | £688,380 |
| 15% | £1,032,570 |
Service charges themselves are forecast to bring in £8.10 million before the empty-homes allowance in 2027/28. That compares with £7.70 million in 2026/27, a rise of 5.1%.
The business case gives the reason. Where service charges do not cover what services cost, it says, rent is used to subsidise them. That leaves less for building safety, repairs and new affordable homes.
The review itself costs £324,187 for a project manager and three data analysts. The business case records that £134,112 of that was spent between 15 July and 12 October, before the council’s spending panel had approved it.
What the council says it will not do
The pack lists several commitments. It says it will not:
- charge a home for a service it does not receive or benefit from
- charge twice for anything already covered by rent
- use the management fee for general tenancy management
- backdate any new charge to before its approved start date
Repairs that are the landlord’s legal duty, such as the structure, exterior, heating and water installations, stay covered by rent.
One point is not settled. The pack proposes a percentage fee of up to 15%. But its own question and answer section says the method “may be based on actual administration cost, a fixed amount or a percentage”. The final figure will only be set after the consultation.
The timetable
According to the pack:
- 2 November 2026: consultation opens
- 18 December 2026: consultation closes
- within 21 days of closing: decision and outcome published
- February 2027: formal notices issued, if approved
- April 2027: new charges start
Nothing is final. The pack says the council could go ahead, change the plan, phase it in or drop it.
What it means for you
If you rent from Barnet Council, you should receive a letter and the consultation pack. Where the data has been checked, it will include a proposed charge for your own home.
Check the list of services carefully. The pack asks tenants to say if they are being charged for something their block or estate does not get.
You can respond by:
- email to servicechargeconsultation@barnethomes.org
- post to The Barnet Group, 2 Bristol Avenue, Colindale, London NW9 4EW
- paper form, returned in the freepost envelope sent with the pack
Responses must arrive by 18 December.
If you claim Universal Credit or Housing Benefit, some service charges count as housing costs. The pack says bills will show eligible and ineligible amounts separately. You will need to report any change to your housing costs when told to.
If you are worried about paying, Barnet Homes asks tenants to get in touch early on 020 8080 6587 or talktous@barnethomes.org. The pack says asking for help will not affect your right to respond.
The council is under wider money pressure. Read our report on its £200 million financial sustainability plan and the council tax bands for Barnet.
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