THE average annual service charge for a leasehold flat in England and Wales has jumped by an inflation busting 4.6% to £2,405 in 2025.
The increase marks the first time the average charge has passed £200 per month, according to new data from estate agents Hamptons.
Service charges are a fee paid by a leaseholder or resident set by a landlord. The amount varies each year depending on costs to the landlord.
The cost can include charges for maintenance, repairs and insurance and details are usually set out in your lease.
London has long had the highest service charges in the country and has also seen the largest increases in recent years.
In the capital, the average charge now stands at £2,801 (£233.45 a month), up 6.4% year-on-year.
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On a national level, the average annual service charge of a one-bed flat is £2,074 (or £172.81 a month), up 3.3% on 2024.
Meanwhile, the average two-bed comes with an annual charge of £2,463 (£205.28 a month), up 4.8% on last year.
Hamptons said these rises have outstripped broader inflation.
Over the last year, service charges increased 1.2 percentage points faster than the Consumer Price Index which came in at 3.4% over the same period.
David Fell, Lead Analyst at Hamptons, said: “Traditionally, the cost of running a flat has been below what owners of houses spend over the long term.
“However, in recent years, large increases in management and compliance costs that aren’t paid by homeowners have upset the equilibrium.”
The findings come amid report that thousands of leasehold owners are becoming trapped and forced to pay high service charges that they have no control or say over.
The Sun visited a housing estate in Surrey where residents said they were forced to take second jobs and delay having children because of the skyrocketing fees.
Earlier this month the government announced plans to reform leasehold rules.
As part of the change, ground rents paid by leaseholders are to be capped at £250 a year in England and Wales come 2028.
New leasehold flats will also be banned, after the Government said the current system is dysfunctional and unfair.
It also said these leasehold reforms will build on planned changes to make service charge bills easier to understand and help people challenge unfair costs.
How to fight rip-off service charges if you’re a leaseholder
MILLIONS of homeowners have been stung with extortionate leasehold service charges. If this affects you and your home, there are things you can do to challenge the charges.
- Try resolving it directly first by speaking to your management company.
- If that fails, you may be able to take over managing charges yourself. The Right to Manage is a legal process where leasehold residents effectively take over managing their building together. It’s only available for leaseholders of flats, not houses.
- For private leasehold residents, you can then complain to a First Tier Tribunal about leasehold charges if you can’t use Right to Manage or need to take further action. If you live in social housing, you can try escalating your case via the Housing Ombudsman instead.
For more on how to fight service charges, click here.