Posted February 26, 2025
The Property Institute (TPI) has published its Service Charge Index 2024, providing updated data on service charge costs across residential estates in England and Wales.
According to the Index:
- The average annual service charge per estate in 2024 was reported at £467,138
- This equates to an average cost of £3,634 per leaseholder
- The data is based on information gathered from 108 residential estates
The Index reports that service charge costs have increased over recent years, reflecting a range of contributing factors, including:
- Energy costs
- Building insurance premiums
- Repairs and maintenance
- Contributions to reserve and sinking funds
In addition, managing agents and leaseholders are now required to meet the costs associated with implementing the building safety regime introduced under the Building Safety Act 2022. These costs vary depending on the age, height, and complexity of individual buildings. The legislation places responsibility for meeting these costs on leaseholders, rather than providing direct government funding.
The full TPI Service Charge Index 2024 and supporting commentary can be accessed here:
https://www.tpi.org.uk/industry-knowledge/service-charges/tpi-service-charge-index-2024/
