The Property Institute (TPI) has published its 2026 Service Charge Index, drawing on data from 13 managing agents — including FirstPort — to analyse service charge trends across more than 117,000 leasehold homes in England, Scotland and Wales.
The report finds that annual service charge bills have increased by 5.8% since 2024, sitting slightly below the 6.1% rate of inflation over the same period. However, costs vary significantly depending on building type and complexity. Homeowners in buildings over 18 metres pay an average of £4,447 a year, compared with £2,418 in low-rise buildings, with costs rising further in older developments.
Key drivers behind these increases include a 26% rise in reserve fund contributions over the past two years — now accounting for 16.4% of total budgeted spend — and a 53% increase in costs associated with Building Safety Act compliance since 2025.
Mairead McErlean, Head of Legal, Compliance and Regulatory Affairs at FirstPort, comments: “TPI’s findings highlight the complexity of managing residential buildings and the wide variation in service charge costs across the sector. Factors such as a building’s size, height, age and specification all play a significant role, meaning there is no single benchmark that reflects the experience of every leaseholder.
“Property managers are working within an evolving regulatory environment, particularly for higher-risk buildings, where there are additional safety requirements.
“Carrying out behind-the-scenes measures, from fire and building safety assessments to inspections and reporting, are essential to maintaining safe and compliant buildings – but with the consequence of increased costs for leaseholders.”
The full Service Charge Index 2026 can be read via the TPI website.
