The average annual service charge for a flat in England and Wales has jumped by 8% – or just over £100 – over the past year, analysis suggests.
At the halfway point of 2023, the average charge is £1,431, equating to £119 per month, according to estate agent Hamptons.
A year earlier, the average was £1,325.
While recent falls in the cost of some building materials and energy costs should start feeding through into lower charges for residents, it won't happen overnight— David Fell, Hamptons
Service charges have increased by 51.7% since 2018, when they averaged £943, which was the last time the figure was below £1,000, Hamptons said.
Its service charge index used data from parent group Countrywide, gathered at the point of sale.
Hamptons’ analysis included flats where a service charge is paid every month.
Houses where a service charge is payable and some flats where there is no formal charge were not included in the figures.
David Fell, lead analyst at Hamptons, said leaseholder premiums have been bumped up by the increased cost of building materials and insurance.
He said: “While recent falls in the cost of some building materials and energy costs should start feeding through into lower charges for residents, it won’t happen overnight.”
