FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
According to the latest five-year forecast data from the Building Cost Information Service (BCIS), maintenance costs, as measured by the BCIS All-in Maintenance Cost Indices, are set to rise 19 per cent by 1Q2030.
Cleaning costs, mainly driven by labour costs, are expected to rise by 31 per cent over the same period.
Dr David Crosthwaite, Chief Economist at BCIS, said: “Against a backdrop of sluggish UK economic growth, maintenance and cleaning budgets remain under pressure.
“Domestically, households and organisations are grappling with high energy costs, wage inflation, changes to National Insurance contributions and thresholds, and wider cost-of-living pressures, all of which have constrained both public and private sector spending.
“Internationally, oil prices, currency fluctuations and global geopolitical tensions are adding further uncertainty.”
BCIS expects energy costs to fall by 14 per cent between 2025 and 2029, reflecting expectations of subdued global demand and stabilisation in gas markets following recent supply shocks, and providing some relief to overall operating expenditure.
Dr Crosthwaite said: “Near-term volatility remains likely, particularly in response to geopolitical events. We’re anticipating a short-term rise in energy costs in 2025, followed by steady declines through the forecast period as wholesale gas prices fall and Europe secures a more stable liquefied natural gas supply.”
Repair and maintenance output remained flat in 1Q2025, when compared with 1Q2024, whereas total new work output was up by 1.7 per cent over the same period. Public housing R&M increased 13.1 per cent, while private housing R&M was down by 11 per cent. Non-housing R&M increased by 6.8 per cent.
BCIS forecasts R&M output will grow by 8.3 per cent by the end of 2029.
Dr Crosthwaite added: “The repair and maintenance sector is showing signs of resilience, particularly in public housing and non-housing work. However, momentum will depend on how quickly inflationary pressures ease and confidence returns to both household and institutional budgets. While the short-term outlook is subdued, we anticipate a gradual return to growth from 2026 as the sector adjusts and longer-term investment filters through.”
