Average annual service charge hits £2,300 in England & Wales
The average annual service charge for leasehold flats in England and Wales has risen by 11% to £2,300, data has revealed. The increase, the largest in eight years would make it the largest household bill after the mortgage for many people. It could reignite calls for the government to overhaul the leasehold sector.
This is the first time that every region in England is seeing average annual service charge of more than £2,000, estate agent Hamptons has said. It compiled an index which calculate the average annual bill for the 5.4 million leaseholders of flats in England and Wales.
The charge paid by flat owners typically incudes maintenance and repairs, as well as building insurance, and management costs. After a 4.3% rise in 2023, the typical average annual service charge increased by 11% last year to £2,300 annually or £192 per month. That is over four times the 2.5% increase in the consumer price index (CPI) over the same period.
Over both the short and medium term, charges have risen at a faster rate than inflation.
There are wide variations between regions and types of property. A north-south divide, Hamptons has said, has been unveiled. The average charge in the north-east and north-west of England has climbed by 60.9% and 57.6% respectively during that period, compared with 27.7% in four regions in the south of England.
This is linked to a larger number of new city centre developments up North and in the Midlands, offering new facilities including a lift, gym, and concierge facilities. The charge also reflects a building’s age. “Larger, amenity-rich developments have generally seen service charges rise much faster than smaller developments with fewer facilities,” said Hamptons.
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