Maintenance costs are set to rise 16% by Q2 2029, according to the latest forecast data from the Building Cost Information Servie (BCIS) All-in Maintenance Cost Indices.
Cleaning costs, mainly driven by labour costs, are expected to rise by 23% over the forecast period, while BCIS expects energy costs to fall by 22% 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 (Facilities Management) 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 & 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 by around 8% in the five years to 2029.