Various factors are driving service charge increases, including:
- Inflation
- Buildings insurance increases (contributing factors include leaving the EU and the Grenfell fire tragedy)
- Cladding Crisis & Building Safety legislation
Over a five-year data period (2019 and 2024), on average:
- Building insurance costs have risen 92%
- Utilities costs have increased 73%
- Health & Safety costs have risen 40%
- Repair and maintenance costs have risen 36%
It is expected that for buildings that fall into scope of the new regulatory regime of the Building Safety Act 2022, costs will continue to rise into 2025 and beyond, especially as the Building Safety Regulator starts calling in high rise buildings for assessment.
Although rising costs across the industry remains a significant challenge, Prime is committed to keeping service charges as low as possible for leaseholders. We continue to seek ways to manage expenses efficiently while maintaining high standards of service.