Introduction

If you’ve ever compared service charges between different types of flats, you might have noticed something: new build developments usually cost more to run than older converted properties. At first glance, that can feel surprising. You might think: ‘Surely a shiny new building should be cheaper than an old Victorian conversion?’ But the reality is that modern buildings often come with far more equipment, safety systems, and maintenance needs. In this blog, we’ll break down why service charges differ, what leaseholders need to know, and how to judge whether charges are reasonable for your block.

Why do new build flats often have higher service charges?

Modern apartment block developments are built to meet stricter building regulations than their older counterparts. That means fire alarms, automatic opening vents (AOVs), emergency lighting, sprinkler systems, and more. All of these safety features keep residents secure – but they also need regular testing, servicing, and certification, which comes at a cost. On top of that, new build apartment blocks often come with lifts, underground car parks, gyms, or concierges, all of which add to service charges. Larger developments may also employ on-site staff such as concierge, housekeeping, grounds staff, or maintenance engineers, and if a concierge service operates twenty-four hours a day, that pushes costs up even further.

Another hidden expense comes from changes in water supply. In many areas, water authorities have lowered water pressure, so modern blocks rely on cold water booster pumps to ensure a steady supply to every flat. These pumps have to be serviced, tested, and sometimes replaced – another layer of ongoing maintenance that older converted properties usually don’t face.

Are older converted properties cheaper to maintain?

Generally, yes – but it depends. A Victorian house split into flats won’t have lifts, fancy fire systems, or booster pumps. That means fewer contracts to pay for and fewer engineers coming out every month. However, older buildings may need more frequent structural repairs, roof work, or damp treatment. So while day-to-day running costs may be lower, big-ticket items can still crop up, and generally forward planning is often less stringent in smaller blocks, so the risk of a big bill around the corner can be a reality.

How do building regulations affect service charges?

Building regulations have become much stricter in recent years, especially around fire safety post the UK’s Grenfell Tower tragedy. Generally, new buildings have to be fitted with equipment like AOVs and fire doors, and all of it has to be maintained. Older conversions may not be required to have the same systems, so their compliance costs are usually lower. The full extent of what is required depends on the height of a building given fire regulations require greater protection and life safety systems the higher a building actually is.

What should leaseholders look for when comparing service charges?

The key is to compare like with like. A modern block with lifts, underground parking, and a concierge will almost always cost more to run than a simple conversion with a communal hallway and little else. So, we suggest that rather than asking ‘why is this block more expensive?’, ask ‘what am I paying for and is it being managed properly?’

Can service charges in new build blocks of flats ever come down?

Sometimes, yes. Once initial warranties expire and the building settles down, some costs can reduce if systems are managed efficiently. But in most cases, the baseline will always be higher because of the sheer amount of equipment involved. The best protection for leaseholders is good management, transparent accounts, and proper budgeting for long-term maintenance.

New build flats and older converted properties come with very different service charge profiles. New builds tend to be higher because of modern safety equipment, water systems, and amenities, while older conversions are simpler but can still face big repair bills. The golden rule is to understand what you’re paying for and make sure it’s being managed fairly. That way, whether you’re in a Victorian conversion or a shiny new tower, you’ll know your service charge is working for you.