Clarion Housing Group, the largest housing association in England, has been compelled to review its service charges after publication of SHAC’s report into apparent sharp practice across the sector.
Resident Involvement Officers have written to tenants and residents saying:
Clarion are carrying out a review of our Service Charge management. We want to identify ways; in which we can improve the way we work.
According to residents, this is Clarion’s first review of service charges as far as anyone is able to recall.
SHAC’s Service Charge Survey published the week previously named Clarion as one of the worst housing associations when it came to service charges. The problems identified included:
- Annual service charge rises vastly outstripping inflation
- Frequent and high overcharging errors (compared to rare and low undercharging errors)
- Difficulties getting errors addressed, with long delays and failures to get refunds
- Bills that are not itemised, making it difficult for residents to know what they are being charged for
- Efficiency savings not being passed on to tenants and residents, with increased supplier costs always being passed on
Clarion has operating margins of approximately 35% according to their 2019/20 accounts, and operating surpluses of over £293 million.
It is high time that Clarion listened to its tenants and residents, but these meetings are just a first step. It needs to clean up its act and implement rigorous controls so that it can be sure every penny charged to hard pressed tenants is valid and justified.
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8 December 2020
Perhaps Clarion will also sort out some of the many reports regarding “bullying” and uncalled for “verbal abuse” which has been reported over many years although reported many times letters from Clarion after 6 months waiting turns up stating N.F.A. just typical.
Clarion sent us a service charges summary with some charges over £200 when they were previously less than £50. It took so much persistence to get them to send proof of these charges, when they finally sent proof, they realised that they’re charging us over double what they should be. Even still, how can out estate use £60,000 of water in a year? That’s got to be a big leak they’re charging us for!
Clarion have refused to send me proof of contractor charges for ‘fire safety maintenance’. As a tenant I thought I was entitled to have this information under housing legislation, but it seems not to be the case according to Clarion. The local authorities should also be investigating Clarion’s service charging protocols, because they are paying thousands out to this landlord for tenants that are claiming housing benefit.