Important Update: RICS Service Charge Code of Practice – What It Means for You
We’re pleased to inform you that the Royal Institution of Chartered Surveyors (RICS) has released the 2025 edition of its Service Charges in Commercial Property professional standard. This update replaces the 2018 edition and introduces several improvements that benefit both property owners and tenants.
What’s New?
The 2025 edition is now a mandatory professional standard, setting a clear and consistent benchmark for how service charges should be managed across the industry. Key updates include:
• Greater Transparency: Clearer guidance on how service charges are calculated and reported.
• Timely Reporting: Stronger emphasis on issuing budgets and year-end statements promptly.
• Dispute Reduction: Improved practices designed to minimise misunderstandings and conflicts.
• Legal Clarity: Enhanced support for lease drafting and interpretation, benefiting both landlords and tenants.
Why This Matters
For owners, this means:
• Improved trust and satisfaction from tenants.
• Reduced risk of disputes and legal challenges.
• A professional, standardised approach to service charge recovery.
For tenants, this ensures:
• Fair and transparent allocation of costs.
• Clearer understanding of what’s included in service charges.
• Confidence that charges are managed in line with industry best practice.
Our Commitment
At SCE Property Consultants, we are fully aligned with the new RICS standard. All our service charge budgets and communications are being updated to reflect these changes. Our goal is to ensure that every stakeholder—whether owner or occupier—benefits from a fair, transparent, and professional approach.
If you have any questions or would like to discuss how these changes affect your property or lease, please don’t hesitate to contact us.