Your guide to service charges
Helping you understand exactly why we have a service charge, how we calculate it and what it pays for.
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Service Charge explained
Helping you live life on your terms is at the heart of what we do – from taking away the hassle of running a household, to providing the companionship, community and care you need, when you need it.
To keep our developments running smoothly, and to provide the best facilities and support, we charge a small fee, called a “service charge”. If you have not paid a service charge before you may have questions about how this works.
The service charge covers everyday running costs, your rainy day fund, and a management fee. More detail on each of these elements is included below.
We work hard to keep the service charge as low as possible and we are confident this represents great value for customers who no longer want to deal with the hassle and administrative burden of running a home.
The service charge is calculated annually and paid in monthly instalments. We make every effort to ensure any annual increase is kept in line with inflation.
Our Property consultant will talk you through the service charges and answer any questions you have.
Everyday Running Costs
This element of the service charge covers the kinds of costs that you would incur running your own household. Around 99% of the services we provide are charged back at cost. Because we buy at scale across our 500+ developments, we can save you money. Please see the table below which explains what is included within the Service Charge paid at a McCarthy Stone development:
|
Service |
Lifestyle Living |
Retirement Living |
Retirement Living Plus |
|
All maintenance of the building and grounds, including window cleaning, gardening and upkeep of the building exteriors and communal areas |
* |
* |
* |
|
Monitored fire alarms and door camera entry security systems |
* | * | * |
|
Buildings insurance, water and sewerage rates |
* | * | * |
|
Maintaining lifts |
* | * | * |
|
Heating and lighting in communal areas |
* | * | * |
|
A concierge service (select developments only). |
* |
|
|
|
The employment of our on-site House Manager who runs the development, brings together the community and is the point of contact for homeowners and their families |
|
* |
|
|
A 24-hour emergency call system |
|
* |
* |
|
The employment of our on-site CQC-Registered Estates Manager and a team of up to 17 people who run the development, deliver our service, brings together the community and are the point of contact for homeowners and their families |
|
|
* |
|
Staff on-site 24/7 for your peace of mind |
|
|
* |
|
The running costs of the onsite bistro/restaurant (there is an additional subsidised charge for meals/drinks) |
|
|
* |
|
One hour of domestic assistance per week. |
|
|
* |
For a typical Retirement Living apartment (based on Wisteria Place in Burton Joyce), the service charge is £49.15 a week for a one-bedroom apartment and £73.73 a week for a two-bedroom apartment*.
For a typical Retirement Living PLUS apartment (based on Chesterton Court in Ilkley), the service charge is £178.42 a week for a one-bedroom apartment and £235.82 a week for a two-bedroom apartment.*
Your Rainy Day Fund
Just as you might do with your home, we also have a Rainy Day Fund (commonly known as a contingency fund) in case we need to make bigger repairs or renovations – such as replacing the roof or upgrading the lift. Part of your service charge will go towards this. This fund is ringfenced in a specific account and can only be used for the benefit of the development.
This fund is ‘topped-up’ further through contributions paid when an apartment is either sold to a new owner or let out to a new tenant. The percentage payable is set out in your lease.
Management Fee
Finally, a management fee is included in the service charge. This covers our support costs for each development, including our operations team, and procurement team who negotiate with suppliers nationwide to get the best prices for utilities and other services. We generate a very conservative amount of income here, equivalent on average to 1% of the service charge. This works out at about £1 per property per week. We are confident this represents great value for customers who no longer want to deal with the hassle and administrative burden of running a home.
When you’re ready to find out more, we will happily explain these charges in more detail.
To support homeowners with affordability, McCarthy Stone offer a free Entitlements Advice service, which can help you access any allowances you may be entitled to.
Is the service charge good value for money?
McCarthy Stone work hard to ensure the service charge is great value for money – it means there is someone to manage the development, gardeners to keep the garden looking beautiful, cleaners to keep things spotless, the lounge is always warm in winter, the lifts work properly and much more.
McCarthy Stone retirement communities and the services they provide allow people to stay independent for longer in safe, well-maintained surroundings, with support available, and the added benefits of living in a sociable and vibrant community. We think that’s priceless.
Retirement Living can save you money
Lots of people actually save money on their cost of living when they move into one of our Retirement Living properties from a large, older house. The typical saving is around £2,000 a year* when compared to the cost of running a typical home.
Retirement Living PLUS can save you money on care
If you move to a Retirement Living PLUS development, you could save on care costs in comparison to the nearest equivalent – a care home. And you’ll have the huge benefit of living independently in your own apartment too. Even with an additional domestic and personal care package of six visits a day, we estimate the cost of the service charge plus care is half the price of the average care home.
Frequently asked questions about the service charge
How do you make sure homeowners understand the service charge?
Prospective customers can find information about the average service charges for specific properties on the relevant property pages. They are also provided with service charge information during the sales process and we make it clear that costs may rise annually, typically in line with inflation.
People in the development receive a service charge budget pack with a clear breakdown of costs every year. It includes a detailed budget for the year ahead and audited accounts for the year before, with explanations for any changes in costs. We provide printed and online copies, and each development has an annual budget meeting so homeowners can discuss any changes and ask questions. They can also talk to our on-site managers throughout the year if they have any concerns or queries.
Do service charges go up every year?
The service charge is re-calculated every year with the help of the finance team in head office. We work hard to keep costs down, and any increases are usually in line with inflation.
How have service charges changed in the last five years?
Typically they only increase by inflation. Between 2019 and 2024, our service charges increased by 34%. However, due to our careful cost management and ability to negotiate prices nationally this is lower than the industry average. The average service charge increase for the whole housing sector in the UK in this time was 41%1.
The reason for this increase in prices is typically national inflation for the costs of the services we provide. Over the last five years:
- Utilities and energy costs have risen 73%2.
- Building insurance has risen 92%3.
- Labour costs have risen 48%4.
- Restaurant services costs have risen 28.5%5.
Retirement Living Plus
Entitlements Advice
*These figures are correct as at 20 January 2025. Wisteria Place service charge for year March 2024-February 2025. Chesterton Court service charge for year July 2024-June 2025.’
** Although the majority of contingency fees are set at 1%, there are a small number of developments where this varies.
*Typical net saving when running a McCarthy Stone Retirement Living apartment when compared to the cost of running a typical home is £2,000 per year. Source: Internal research carried out by McCarthy Stone, 2024. Based on information from Address Intelligence using a combination of census, EPC and planning permission data. Service charge included in saving.
**Carehome.co.uk advice (June 2025)
1 TPI Service Charge Index 2024 – Service Charges – The Property Institute
2 Ibid
3 Ibid
4 UK minimum wage by category 2025 | Statista (£11.44 for over 21s in 2024, compared to £7.70 in 2019)
5 Cost of living insights – Office for National Statistics (January 2019 to January 2024)
“I am extremely happy with the excellent service provided by the McCarthy Stone Resales team throughout the sales process of our apartment at McKinlay Court in Kettering. Although McCarthy Stone Resales are slightly more expensive than the other high street agents, this has proven to be money well-spent and I wouldn’t hesitate to recommend them.”
McKinlay Court, Kettering
“The team at McCarthy Stone Resales were incredibly friendly and helpful, from our very first enquiry to the completion of our property purchase at River View Court. The service provided throughout was excellent. Thank you for your assistance.”
River View Court, West Bridgford
“The whole buying process with McCarthy Stone Resales was very easy and clear. We opted for the part-exchange process which alleviated the uncertainty of how long it would take to sell our own property. We are extremely pleased with the whole experience. Thank you!”
Cwrt Gloddaeth, Llandudno
“I would like to express my thanks for the excellent work done by your Resales team throughout the sales process of our apartment at Clarkson Court in Woodbridge. Throughout all of this period, the endeavours and personal commitment from McCarthy Stone Resales was exemplary and is gratefully appreciated, and the friendly and helpful manner of the team is truly commendable.”
Clarkson Court, Woodbridge
Recently used McCarthy Stone Resales for the sale of our apartment at Robert Adam Court in Alnwick. Would thoroughly recommend them to anybody who is thinking of selling – it costs a bit more than if you use a local estate agent, but is worth it for a) the wider access to the target market for these apartments through their network, and b) the specific knowledge and expertise of the House Manager. In our case Philip, the Manager at Robert Adam Court, was extremely helpful and played an important part in the sale process. Many thanks.
Robert Adam Court, Alnwick
“I would particularly like to thank House Manager, Gillian Wright at Grove Court, not only for her help during the sale process, but her dedication to her role during the five years my mother lived at Grove Court. I would also like to thank Brendan Mann for his help with negotiating the sale of the property. I would highly recommend McCarthy Stone Resales.”
Mr Smith, Grove Court
“The resales team have done a brilliant job in finding me a purchaser at a sensible selling price. I am very happy with the service I received and believe that the teams specialist knowledge about the intricacies of retirement living along with a client base of people interested in this particular type of property has led to a successful outcome all
round. Thank you so much for all your help.”
Carolyn Chapman, Rowleys Court
“Our House Manager Kerry is a real superstar. She’s always there to help straight away, no matter how big or small the issue is. It is so comforting to have somebody there who you know you can rely on. She makes life so easy for us.”
Mr and Mrs Clarke, Homeowners, Walsall
“We are very lucky to be very active and able to do things we love in life. We’re regularly off on holiday. We have nothing to worry about now as we can lock up and leave knowing our apartment is part of this fabulous development with 24-hour security.”
Mr and Mrs Fleming, Homeowners, Anstruther
