Average service charges paid by owner-occupier leaseholders have risen by more than a quarter in a year as the Government prepares greater regulation of property agents.
Analysis of Government data by property management specialist Rushbrook puts the average annual service charge at £2,169 in 2024-25, an increase of 26.2% on the previous year.
Over five years, the average charge has increased by 33.4%.
Ground rents paid by owner-occupier leaseholders also increased, rising from an average £235 in 2023-24 to £315 in 2024-25 – an annual increase of 34.3%.
The figures come as the Government plans to introduce an independent regulator covering property agents, including managing agents, estate agents and estate managers, alongside proposals to consult on capping administration fees.
FIVE MILLION HOMES
Government figures analysed by Rushbrook put the number of leasehold dwellings across all tenures at 4.902 million, including 4.633 million in the private sector.
Around 1.911 million are within the private rented sector, equivalent to 39% of all leasehold homes.
Flats account for 82.4% of the total.
Rushbrook says the scale of the sector means changes to property management standards will have implications for landlords as well as owner-occupiers.
AGENT SCRUTINY
Administration charges are another area expected to come under greater scrutiny.
Examples from published fee schedules analysed by Rushbrook include charges of £50 to £60 for permission to keep a pet, £60 to £150 for consent to alterations and £100 to £250 for management or LPE1 sales packs.
Roma Sharma (main picture, inset), Managing Director of Rushbrook, says: “Property managers are entrusted with people’s homes and increasingly substantial sums of their money, so it’s only right that professional standards keep pace with that responsibility.
“Rising charges don’t automatically mean leaseholders are being treated unfairly, as costs have risen considerably across the board in recent years, with inflation placing additional pressure on the cost of managing and maintaining properties.
“However, what matters is that these charges are fair, transparent and justifiable, with those responsible for managing properties accountable for the service they provide.”
