Landlord apologises to tenants for unexplained service charge bill

The statement included various support groups and advice services tenants could use. 

They added that the “tone and detail of our letter might have been confusing and it is clear some tenants and residents felt distressed by the amount of technical detail contained with the communication”.

The senior leaders promised to update residents on its work to figure out what has gone wrong in this instance, including information on the implications and clarity on what happens next as a result of this process.

Around one week later, Saffron published an additional update from Mr Francis and Ms Newman, who said the landlord had met with tenant groups, tenant board members and representatives “regarding our recent communication on service charges”.  

They said: “We heard feedback about the impact of the recent letters, heard significant concerns and have started a review into exactly what we did wrong and what we need to do to put this right. 

“We are committed to building an organisation that improves your experience of Saffron and this is an example of a clear failure to do this, for which we are truly sorry.”

The landlord’s leaders also revealed that the board would be meeting on 16 October to discuss the findings of the review into what went wrong. 

Saffron published its latest statement on this issue last week, it said that tenants who have “never been charged for a service charge before can disregard the letter dated 25 September 2023 and will not be required to pay the amount stated”.

The landlord apologised again and said that it has been conducting a review to “ensure we understand why this happened and to ensure this does not happen again”. It did not provide further details on the review or what went wrong. 

Mr Francis and Ms Newman said: “We have listened to feedback from tenants, tenant groups, homeowners and tenant board members, and this has been used to inform the board’s decision and the steps Saffron are taking to start putting this right.”

Tenants who have always paid service charges do not need to make a payment now, as the amount stated in the letter will be included in the 2024-25 rent and service charge letter, which they will receive in February 2024.

For leaseholders, Saffron has added the amounts in the letter to their service charge account. 

Mr Francis told Inside Housing: “We are aware that we have caused distress and confusion, sending out a recent letter regarding service charges. 

“We are committed to building an organisation that improves tenants’ experience of Saffron and this is an example of a clear failure to do this, for which we are truly sorry.

“Following the letters being issued we met with tenants directly and heard feedback about the impact of the communication, heard significant concerns and have started a review into exactly what we did wrong and what we need to do to put this right.

“The board met on Monday 16 October and have made the decision that tenants who have never been charged for a service charge before can disregard the letter and will not be required to pay the amount stated.

“Tenants who have always paid service charges do not need to make a payment now; the amount stated in the letter will be included in the 2024-2025 rent and service charge letter which they will receive in February.

“Homeowners who have always been charged a service charge; the amount shown in the letter has been added to their service charge account.

“We have been working with the chairs of our tenant groups to communicate this decision to affected tenants and offer support for any outstanding concerns or queries.”