- Everyday running costs that keep our homeowners happy, safe and secure.
- The ‘rainy day’ (contingency) fund - this is saved for the development’s future.
- A management fee - this pays for our operational teams who support your development.
Your guide to our service charges
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 fee called a ‘service charge’. If you have not paid a service charge before you may have questions about how this works.
We work hard to keep the service charge as low as possible and we are confident it 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 installments. We make every effort to ensure any annual increase is kept in line with inflation. There are two service charge options available: one with a higher monthly contribution, and one where part of the cost is deferred and paid later when the apartment is sold or let. You can find details about how much the service charge is on individual development pages.
The service charge covers three main areas:
Everyday running costs
This element of the service charge covers the kinds of costs that you would incur running your own household – we’ve given some examples below.
Retirement Living
If you live in a Retirement Living development your service charge includes:
- 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
- Heating and lighting in all communal areas
- All maintenance of the building and grounds, including window cleaning, gardening and upkeep of the building exteriors and communal areas
- A 24-hour emergency call system
- Monitored fire alarms and door camera entry security systems
- Buildings insurance, water and sewerage rates
- Maintaining lifts
Retirement Living PLUS
If you live in a Retirement Living PLUS development your service charge includes:
- The employment of our on-site CQC-Registered Estate Manager and a team of up to 17 people who run the development, deliver our services, bring together the community and are the point of contact for homeowners and their families
- The running costs of the on-site bistro/restaurant (there is an additional subsidised charge for meals/drinks)
- One hour of light domestic assistance per week
- Heating and lighting in all communal areas
- Staff on-site 24/7 for your peace of mind
- All maintenance of the building and grounds, including window cleaning, gardening and upkeep of the building exteriors and communal areas
- A 24-hour emergency call system
- Monitored fire alarms and door camera entry security systems
- Buildings insurance, water and sewerage rates
- Maintaining lifts
What is the rainy day fund?
Just as you might do with your home, we also have a rainy day fund (called the contingency fund) in case bigger repairs or renovations are needed – such as replacing the roof or upgrading the lift. Part of the service charge will go towards this.
We have different service charge models across our portfolio of developments and so you should check individual development pages for specific information, but in general there are two alternative ways contributions are made to the Contingency Fund:
- You either contribute a higher amount through your monthly service charge and less when later reselling; or
- You contribute a lower amount through your monthly service charge and pay more when later reselling.
In both cases, the monies collected goes into a fund which helps cover longer term repair and replacement costs, including internal and external decorations, roofs, alarm systems, window frames and lifts.
The money in this fund is held on trust for the benefit of homeowners at the development and does not come to McCarthy & Stone.
Please contact a sales consultant for information connected to a specific development.
What does the management fee cover?
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 small amount of income here, equivalent on average to 1% of the service charge. This works out at about £1 per property per week. Around 99% of the services we provide are charged back at cost.
Is the service charge good value for money?
We work hard to ensure the service charge is great value for money – whether you choose the standard monthly option or the deferred option, 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.
Our 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 £3,000 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
Prospective customers can find information about the average service charges for specific properties on the relevant development 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.
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.
For homeowners on the deferred option, the monthly contribution may be lower, with part of the cost deferred until the apartment is sold or let.
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.
These figures include typical contributions to the Contingency Fund, ensuring funds are available for longer-term repairs and maintenance.
It gives us a real sense of security, especially with staff on-site at all times. Moving in has allowed us to futureproof our retirement, as we can opt-in to tailored domestic support and personal care packages should we need to.
Peter and Jean, tenants, Campbell House
I know my parents are well looked after, which has given the family great peace of mind. The staff go above and beyond to support the homeowners and make sure they’re comfortable. The House Manager is wonderful.
Christine with her parents, homeowners, Julie and Alan, Waveney Place
It has improved her life – and ours. Previously she was worried about the house and getting stuff done. She has help with cleaning and her laundry and people keep an eye out for her. We’d recommend McCarthy & Stone to anyone.
Martin, son of Christine, homeowner, Kingfisher Court
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*Typical savings between £213 - £3,107 on your household costs: Calculated by comparing the annual costs of energy (gas and electricity), window cleaning, garden maintenance, and building and contents insurance with McCarthy & Stone’s average annual charges for the same household services for a one-bed and two bed Retirement Living apartment in Wisteria Place.
**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)