Leaseholders face record-high service charges

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Original Article Summary

The average service charge rose 4.6% in 2025 to reach £2,405 a year

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Investor Analysis

Average leasehold service charges in England and Wales hit record £2,405 annually in 2025, with 37% of flats now exceeding the 1% property value threshold that restricts mortgage lending availability.

Investor Relevance

Rising service charges directly impact leasehold property investment returns through increased holding costs, reduced mortgage availability when charges exceed 1% of property value, and decreased saleability affecting exit strategies. Critical for due diligence on apartment acquisitions.

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Property Industry Eye

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