Maintenance and cleaning costs are set to rise

According to the latest 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 by 15.7 per cent over the five years to 1Q2031.

BCIS’ updated forecast also reveals that cleaning costs are expected to rise by 29.1 per cent over the same period, driven primarily by labour costs, while energy costs are forecast to fall by around 10 per cent between 2026 and 2031 – though the near-term outlook is considerably more volatile.

R&M output is forecast to grow by 7.7 per cent over the forecast period, with growth of 1.0 per cent expected in 2026.

Dr David Crosthwaite, Chief Economist at BCIS, said: “The facilities management sector is navigating one of the more complex cost environments we have seen in recent years. R&M output is growing, which reflects genuine underlying demand – regulatory pressures, ageing assets and sustainability requirements are all driving activity – but that growth is happening against a backdrop of costs that continue to rise faster than many organisations have budgeted for.”

He added: “Labour is the dominant pressure. Wage growth combined with the National Insurance changes introduced in 2025 has pushed maintenance and cleaning costs higher, and while we expect some moderation, costs will remain on an upward trajectory throughout the forecast period.

“Energy is the most unpredictable element of the outlook. The overall forecast points downward, but the near-term volatility – driven largely by the situation in the Middle East – means organisations need to plan for uncertainty rather than assume a smooth path to lower costs.”