Warwick Council Homes: New Checks on Estate Service Charges

Warwick District Council will look hard at service charges before it buys any more homes on new-build estates for its tenants. Under a framework announced on 23 October, developers selling the council homes through Section 106 agreements will have to give “transparent and reasonably forecast” service charge increases, and every future purchase will go to Cabinet and Council with those charges set out before a decision is made.

Section 106 agreements are the deals attached to a planning permission that commit a developer to providing things such as affordable homes. The council buys some of those homes and lets them to its own tenants, as it is doing with the 20 council homes at Tournament Fields in Warwick.

Why service charges matter

Many new estates are not fully adopted by the council. The council explains that modern developments often include private roads, green spaces and drainage systems looked after by a management company, and residents pay a service charge to cover their upkeep.

For a tenant on a social or affordable rent, that charge comes on top of the rent. The council says the new framework brings “stronger checks on these arrangements to help ensure charges are clear, fair and affordable for tenants, reducing the risk of financial hardship”.

What the council will check

According to the council, the framework covers:

• Service charges: developers must forecast increases openly, so the council can decide which homes to buy with the long-term cost in view.
• Affordability assessments of the homes on offer.
• Environmental performance: energy-efficient, low-carbon technology that helps keep household bills down.
• Green space: whether the estate has attractive green spaces that encourage walking and cycling.
• Decisions in public: reports to Cabinet and Council setting out any service charges and associated costs before the council agrees to buy Section 106 homes.

Where it came from

The framework follows a motion to Council in December 2025 by Councillors Jan Matecki and Paul Wightman. The Housing Scrutiny Committee then considered it before the council drew up the framework now announced.

Councillor Jess Melrose, the Portfolio Holder for Housing, said:

“Our goal is to increase the number of affordable homes available across the district, but we want to ensure those homes remain affordable after people move in.

“This framework puts residents’ interests at the heart of our decision-making. By introducing affordability assessments and greater scrutiny of service charges, we’re giving tenants additional protection and transparency.

“We’re taking a balanced approach that protects residents while continuing to tackle the urgent need for affordable housing across Warwick District.”

What it means for you

• If you are on the housing register, a council home on a new estate should come with its service charge known and scrutinised before the council buys it, rather than as a surprise after you move in.
• If you want to see the numbers, the council says each future purchase will go to Cabinet and Council in a report setting out the service charges and associated costs.
• If you are a council tenant on an estate now, the council has not said the framework changes charges on homes it already owns; it applies to new Section 106 purchases.

The council’s announcement is on its news page.