BCIS reveals five-year maintenance, cleaning and energy forecast
Maintenance costs, as measured by the BCIS All-in Maintenance Cost Indices, are set to rise 17% by Q4 2029, according to the latest forecast data from the Building Cost Information Service (BCIS).
Cleaning costs, mainly driven by labour costs, are expected to rise by 27.5% over the forecast period, while BCIS expects energy prices to fall by 6% over the same period.
Dr David Crosthwaite, Chief Economist at BCIS, said: “The repair and maintenance sector faces a multitude of challenges, from increasing obligations to maintain safe environments to the impact of ongoing economic pressures and uncertainty.
“Increases to employers’ National Insurance contributions and the National Living and Minimum Wage from April will have a significant effect on payroll expenses. As with the rest of construction, the sector is also constrained by skilled labour shortages.”
Repair and maintenance output rose by 8.5% in 2024, outperforming new work output, which was down by 5.3% on 2023. Public housing repair and maintenance increased 14.2%, while private housing rose by 7%. Non-housing repair and maintenance increased by 8.5% annually. BCIS forecasts repair and maintenance output will grow by 8.2% over the next five years.
Dr Crosthwaite added: “We expect growth to slow over the forecast period. Public spending is still highly constrained and will likely impact the growth of public housing, public non-housing and infrastructure repair and maintenance. Private non-housing repair and maintenance output is likely to be affected by rising costs, with economic uncertainty pushing asset owners into postponing routine maintenance and causing further delays and backlogs.”
