About service charges
Average annual cost of maintenance for homeowners guide
This guide tells you the average yearly maintenance costs that any homeowner should expect to spend. This provides a “rule of thumb” for all homeowners, not just those in ex-council properties, to give them an easy to understand idea of the average cost of maintenance of their property.
Any homeowner should expect to either put aside, or spend, between 1% and 4% of the value of their property on maintenance each year (this doesn't include any spending on services such as heating, caretaking or grounds maintenance etc.)
- a flat in an older tower block in poor condition could expect significant works and would be more towards the 4% mark. So, for a property valued at £200,000, the homeowner should budget £8000 per year (£200,000 x 4%).
- a flat in a low-rise building in reasonable condition could expect moderate works and would be around the 2% mark. So, for a property valued at £200,000, the homeowner should budget £4000 per year (£200,000 x 2%).
- a street property in good condition would expect fewer repairs and would be closer to the 1% mark. So, for a street property that has been valued at £300,000, the homeowner should budget £3000 per year (£300,000 x 1%)
After major works have been done, the building will be in better condition and the homeowner could set aside less money for a few years. However, as the building weathers over time, the amount set aside should go up each year to reflect the building's condition until works are needed again. In this way, the homeowner will have prepared for the cost of future works.
We have a duty to make sure that the properties we maintain are kept in a reasonable condition, so we plan work accordingly. We know that some homeowners can't pay as required by their lease or transfer, so we offer several ways to pay, including long-term service charge loans, and equity share and equity loan schemes.
Page last updated: 20 February 2024