Service Charge trend data

Service charge trend indexation graph 1983 - 2007

The previous trend for non air-conditioned costs, in particular, to increase at above the rate of inflation has ceased. This will be closely monitored in future years to see if a new trend has begun.

In previous years we have seen a narrowing in the overall costs of running air-conditioned and non air-conditioned buildings. Chart 30 shows that in 2003 this was running at an historically high figure of £2.60 per sq foot, but it is interesting to note that since that date the figures have narrowed and in the last two years these have been running at £1.41 per sq foot and £1.43 per sq ft. Further analysis shows that since the OSCAR Index was implemented in 1983 through to 2004 the relative costs of running non airconditioned buildings compared with air-conditioned space was set at about 70%. However, the trend in the last three years shows that this relationship has narrowed to 80%.

The stock of non air-conditioned buildings in the sample comprise largely older buildings and whilst in the previous two years this “narrowing” in costs was due to the proportionally higher spend on fabric and maintenance, this year there has been relative stability in the expenditure across all service charge categories with the exception of site management resources but the annual trend of the last four years shows an increase of 4.5%.

Service charge trend absolute graph 1983 - 2007

National average a/c cost category trends

National average non a/c cost category trends