23/09/2025
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If you own a flat, chances are you’ve heard people comparing service charges on a ‘per square foot’ basis. It sounds simple: divide the total charge by the size of the flat and compare with another building. But is it really that straightforward? In reality, service charges depend on all sorts of things – the age of the building, whether there’s a lift, how much staff are on site, the size of gardens, the level of amenities, and the insurance costs. In this blog, we’ll look at who actually publishes figures on service charges, whether per-square-foot comparisons are useful, and what leaseholders should keep in mind before jumping to conclusions.
Various property consultants, managing agents, and even some estate agents publish reports on average service charges. These are often based on surveys of big developments, particularly in London. They can give a ballpark idea, but they don’t always reflect the whole market which of course includes smaller or older blocks outside the big cities.
The Property Institute is one average service charge index provider, the Ringley Group is another.
Not really. Two buildings may look similar on paper but have very different running costs. For example, one block might have a swimming pool and a concierge, while another just has a lift and a cleaner once a week. The service charge per square foot will be higher in the first building, but that doesn’t necessarily mean it’s unreasonable.
Then imagine another block that is self-managed, in that case service charges will be lower, but that is because the unsung heroes are giving up their time fulfilling functions that are usually paid third party services.
The biggest drivers are the age of the building, the plant and equipment installed, the level of staff on site, the size and upkeep of gardens, the amenities offered, and the insurance costs. So two buildings really have to be broadly the same before comparing them per square foot makes much sense.
Bigger that this still is that a block without the ability to collect a reserve fund (if the lease does not provide for one) will in some years have yo-yo service charges with huge hikes in the year works are required – hardly helpful when trying to generalise.
The best way is to look at the actual costs in the accounts and check if they’re in line with the lease. Leaseholders can also compare with similar local buildings – same age, same facilities, similar size – to see if costs look fair. If something feels off, leaseholders can ask for explanations from the managing agent or directors.
A good solicitor should be checking out the service charge accounts and explaining them to you as part of the purchase transaction.
Estate agents often quote service charges per square foot because it’s a quick way to give buyers a sense of running costs. It helps with budgeting and allows quick comparisons between flats. However, this simplification can be misleading. Buildings with more facilities—like pools, concierges, or extensive gardens—will naturally have higher charges, which doesn’t mean they are mismanaged. Conversely, very low charges might indicate underfunded maintenance, which could create bigger problems later. Context matters far more than a simple square-foot calculation: the building’s age, amenities, management, and financial health are what really determine if charges are reasonable.
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