What are reserve funds, and why do they matter?
- Reserve funds are essentially saving pots. Think of it as a communal building's emergency fund or long-term savings account, separate from day-to-day costs. Reserve funds are important, as they protect residents from potentially costly bills, by spreading the cost over several years.
- A reserve fund is used to cover the cost of planned expenses such as scheduled redecoration, as well as major works such as roof replacements, lift repairs, plant or equipment renewals. These expenses are determined by stock condition surveys, which we carry out every few years to gather essential data about the state of our homes. This information is crucial for planning repairs, maintenance and major works, as well as setting accurate reserve fund contributions for our homeowners.
- Contributions to a reserve fund are made by all Hastoe homeowners every year through an annual service charge budget. These funds are held in an interest-earning account and are available to use when needed.
We have put together an introduction video and a further two-part video which explains the journey from stock condition surveys, to setting your reserve fund contribution, to carrying out and invoicing any works done. These videos are detailed and we hope they will answer the questions you may have.
Below are some of the more commonly asked questions about reserve funds, especially those we receive each year when our annual estimates for contributions are sent to all homeowners.
What if I do not agree with the survey data or the increase in my contributions?
If you do not agree with the survey data and subsequent reserve fund contributions, please contact Hastoe clearly outlining the reasons why you do not agree. You can contact us via MyHastoe, or by writing to us at:
Hastoe Housing Association, Fleur-de-Lis, Middlemarsh Street, Dorchester, Dorset DT1 3GX
It is important to note that our decision around the above, is based on professional data. It is always a challenge to find a balance of making sure regular maintenance is carried out, that the terms of your lease are followed, and that you are able to plan your finances in a practical way. As an organisation we have carefully considered the level of reserve fund increase and the effect it will have on all homeowners.
My lease says Hastoe needs to carry out work every so number of years. Why have you not done this?
We allocate a certain amount of funds each year for maintenance. However, for a number of reasons, we have had to prioritise what works we do and in what order, with a focus on those works that carry a legal health and safety requirement and/or are considered to be the most urgent. These reasons, many of which have been impacted by UK and global events in the last few years, include:
- Budget constraints experienced by housing providers across the sector
- High levels of inflation (especially in building works) over the last few years
- New fire safety legislation
- The creation of the Building Safety Regulator
Housing associations across the country, including Hastoe, have had to quickly adapt to these evolving regulations for both high- and low-rise buildings, all while ensuring resident safety. In 2019, we assessed our housing stock to identify buildings at risk and to explore available resources and funding to help offset these unplanned costs, both for Hastoe and our homeowners. This meant that non-urgent works had to be delayed further.
If Hastoe had carried out the work sooner, would it have cost less?
As mentioned in the previous answer, delays to non-urgent works have been out of our control.
Before we do any work that exceeds £250 per property, we will automatically carry out a consultation with homeowners. As part of that consultation, we carry out a procurement and tender process, to ensure value for money and transparency.
Where we use a term contractor, we will notify homeowners. Hastoe uses the NHF (National Housing Federation) Schedule of Rates 7.1, which was last updated in July 2019.
Works are raised on the national schedule of rates, which is a nationwide recognised pricing structure. As part of the procurement process, contractors sign up to this structure. This means we are always transparent with our prices and can demonstrate value for money.
Do homeowners subsidise Hastoe’s rented properties?
All Hastoe homeowners only contribute their portion of reserve funds, as dictated by their lease. The properties that Hastoe owns and rents out are our financial responsibility and we contribute to those reserve funds accordingly.
Can I opt out of a reserve fund and just pay for work when I am invoiced?
Unfortunately not. As per the terms of your lease, you have a responsibility to contribute towards a reserve fund for your estate or block.
I already have a healthy reserve fund balance. Surely my contribution should be decreased?
Where reserve funds are sufficient to cover the planned work needed to your block or estate, and also any unexpected works, your increase will be on a par with previous years.
However, where we know that significant work is needed to a block or estate, we would expect this work to significantly reduce your reserve fund. Your contribution has been worked out with this in mind.
How do I make a complaint about my contributions?
As reserve fund contributions are required under the terms of your lease, and any challenge relates solely to the reasonableness of the cost, they fall outside the Housing Ombudsman’s jurisdiction. As a result, we do not accept complaints relating to reserve funds.
If you are unhappy with your estimated reserve fund contribution, your first step is to contact Hastoe and clearly outline the reasons why you do not agree. You can contact us via MyHastoe or by writing to us at:
Hastoe Housing Association, Fleur-de-Lis, Middlemarsh Street, Dorchester, Dorset DT1 3GX
If you are not satisfied with our response, you can escalate the matter to the First Tier Tribunal. Please visit the links below for further information about this:
What happens to the funds in my reserve fund if I sell my property before work is carried out?
Reserve funds remain with the property and transfer to the new owner when a property is sold.
Having a healthy reserve fund is an asset and increases the value of your property.
Reserve funds will not be refunded as part of a sale.
I am currently selling my property; do I need to give this letter to my solicitors?
As part of any sale, you have a legal obligation to provide this information to the prospective buyers of your property. This letter should be sent promptly to the solicitor you are using for the sale.
What is my current reserve fund balance?
Please refer to the 2024-2025 actuals that you were sent in September 2025. These contain your current balance and any transactions.
Do homeowners get a say in what work is carried out and when?
Where works cost more than £250 per property, we will carry out a Section 20 consultation. Homeowners will have the opportunity to ask questions during the consultation.
Please watch the video above to learn more about Section 20 consultations.
