BCIS forecasts five-year rise in maintenance and cleaning costs with energy costs to fall

Maintenance costs are set to rise 16 per cent by the second quarter of 2029, according to the latest forecast data from the Building Cost Information Service (BCIS) All-in Maintenance Cost Indices.

Cleaning costs, mainly driven by labour costs, are expected to rise by 23 per cent over the forecast period, while BCIS expects energy costs to fall by 22 per cent over the same period.

Karl Horton, Chief Data Officer at BCIS said: “The economic outlook for 2024 remains challenging due to high interest rates and constrained funding on the demand side, and a lack of skilled workers and contractors on the supply side.

“While demand for FM services is expected to stay strong, repair and maintenance output will remain stagnant initially, with growth in the latter part of the forecast period. Cost increases will be driven by wages trying to recoup the real falls in recent years and by increases in the National Living Wage.”

BCIS is expecting annual declines in all repairs and maintenance (R&M) sub-sectors apart from public housing and infrastructure in 2024.

While R&M is expected to show growth overall in 2025, non-housing R&M is forecast to remain in decline. BCIS is projecting R&M output to rise around eight per cent in the five years to 2029.

Horton added: “R&M output may be significantly affected by the upcoming Autumn Budget. With a £22 billion black hole in the nation’s finances to plug, the Chancellor has some very difficult decisions to make.  

“We know that funding for R&M projects, including urgent work on schools, hospitals and prisons, as well as other government and local authority buildings, is going to be under extreme pressure.

“There is a large stream of work on backlog maintenance, decarbonisation and repairs to address RAAC, if funds are available.”