retail parks

Service Charge & Insurance: 2023 Forecasting and Inflation

With surging inflation and the energy crisis, we have been working on and re-assessing our client’s forecast property spend for 2023.  There has been a great deal of economic turbulence that has had an impact on inflation across all service cost categories.

The Missing Millions: Uncertified service charges

The findings were disturbing, with uncertified service charge expenditure going back as far as 2013 and amounting to an aggregate sum in excess of £1 billion, with £583million relating to 2020 and 2021 when actual expenditure was well below budget levels due to the impact of Covid.

Retail/Leisure Service Charge Budgets in 2022

For us to understand what will happen to Service Charge budgets in 2022, we need to look back. In 2021 service charge budgets reduced by 9% for Shopping Centres and 4% for Retail/Leisure Parks. This was mainly due to the withdrawal of major works and reduced marketing throughout the lockdown periods. There was relatively little in the way of reduced manpower costs, despite Furlough, so that’s one to look out for as we await the final reconciled service charge accounts…

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