Southwark Council is set to consult with residents on service charge information related to the Consort Estate, following a review of major works charges to leaseholders. The consultation aims to allow residents to influence the works included and be aware of the cost early in the process, prior to the second stage Section 20 notice being served.

The decision follows a meeting of the Overview & Scrutiny Committee on 8 October 2025, where the Cabinet's response to recommendations arising from scrutiny of Consort Estate major works charges was noted. The committee's review was prompted by concerns raised by residents of the Consort Estate and ward councillors for Rye Lane regarding leaseholder service charges and Section 20 notices.

Councillor Sarah King, Cabinet Member for Council Homes, thanked residents and ward councillors for bringing their concerns to light. In a foreword to the report, she stated that the residents are helping to shape how the Council will deliver major works projects in the future to the benefit of all Southwark's tenants and leaseholders.

The Cabinet responded to several recommendations made by the Overview and Scrutiny Committee:

  • Strengthening the Council's in-house Quantity Surveyor function: The Cabinet accepted this recommendation, noting that a dedicated internal Quantity Surveyor has been assigned to the Planned Maintenance Team to scrutinise estimates and conduct audit checks.
  • Changing the way the admin fee is calculated on contracts: The Cabinet partially accepted this recommendation. While declining to change the administration fee calculation, which is currently set at 10% of the cost of services provided as defined within the lease for the management of the service charge accounts1, the Cabinet agreed to ensure consultants face penalties for excessive scope creep in new contracts. Consultants may not be awarded further contracts if excessive scope creep occurs.
  • Reviewing and strengthening communications and cross-department working: The Cabinet partially accepted this recommendation, agreeing to consult with Tenants and Residents Associations earlier, develop website functionality for leaseholders to download service charge breakdowns, and update the FAQ document about major works.
  • Introducing an automatic option of being able to pay over six months: The Cabinet partially accepted this recommendation, agreeing to draft a briefing for the cabinet member for housing to consider creating a policy for implementation. The policy would have to comply with the Council's well-being powers, as this is the basis on which the longer-term interest free periods for major works service charges have been created, and would therefore be more restrictive than the ad-hoc nature of the current process.
  • Piloting working with solicitors and estate agents: The Cabinet did not accept this recommendation, noting that property sales are private transactions and the council should not offer advice regarding the property transaction as it could be seen to be prejudicing against either party and opening itself up for recourse.
  • Strengthening the whistleblowing system within the Council: The Cabinet partially accepted this recommendation, noting that the whistleblowing policy is reviewed on a four-yearly cycle and a new draft policy is going through the governance process. Training is also being arranged for staff and investigating officers to take place once the policy is approved.
  • Introducing fully itemised billing in final service charge invoices to leaseholders: The Cabinet partially accepted this recommendation, declining to automatically issue itemised breakdowns but working towards publishing them online through homeowners' Housing-on-Line accounts via the MySouthwark portal. It is anticipated that this option, or an alternative digital solution, will be available for the 2024/25 actual service charges due to be issued in September 2025.

The Public Reports Pack provides further details on the Cabinet's responses and the original recommendations from the Overview and Scrutiny Committee.

  1. The administration fee is calculated at 10% of the cost of services provided, as defined within the lease for the management of the service charge accounts. ↩