SALES NEWS: Buyers of new apartments advised to budget for service charges
Purchasers of new-build apartments, whether to live in or to let out, are being advised to make sure they budget for service charges.
A survey of 100 brand new developments, all on the market in recent months or still being completed, shows that service charges typically add up to £2,777 per year. This is almost double the typical service charge on an apartment that may be 10 years old.
This is down to the latest apartment blocks being of a much higher specification with more extensive facilities such as lifts, communal lounges, greater security and in exceptional circumstances health and leisure amenities as well.
In addition, new-build apartments attract a premium which means that – in the early years at least – they may appreciate in value less than older properties without such a premium.