Data from The Property Institute (TPI), covering 20,000 homes in London, indicates a 5.6% drop in service charges for buildings over 18 metres since 2025. Despite this decline, leaseholders in these buildings still face some of the highest service charge costs in the UK.
The average annual service charge for leaseholders in London's tallest residential buildings is £7,154 in 2026, down from £7,578 in 2025. However, across London as a whole, average charges have increased by 1.1% over the past two years, with the average annual service charge standing at £4,620 per leaseholder.
This reduction in costs for taller buildings is primarily attributed to a 17% fall in buildings insurance costs since 2024 and a 17% decline in communal utility costs. Building height and age remain strong predictors of service charge costs, with leaseholders in buildings over 18 metres paying an average of £7,154 annually, compared to £4,070 for those in buildings under 11 metres. Similarly, leaseholders in buildings over 50 years old pay an average of £7,223 annually, while those in buildings less than 25 years old pay £3,328.
Andrew Bulmer, CEO of TPI, noted that while the easing of costs in some areas is welcome, service charges in London remain high, particularly in older and taller buildings. TPI is advocating for mandatory reserve funds and the regulation of property managers to ensure financial preparedness and professional management of buildings.