Occupancy Cost Briefing Executive Summary

BMI Quarterly Cost Briefing March 2008

Executive Summary

Further details are available to BCIS Building Running Costs Online subscribers.

Maintenance Costs

The price of work carried out for private householders continues to rise at a rate significantly higher than the general rate of inflation, as measured by the Retail Prices Index. The annual rate of increase for repair and maintenance rose to 11.2% and for alterations to 10.6%, over the period 4th quarter 2006 to 4th quarter 2007.
The BMI All-in Maintenance Cost Index was unchanged between 3rd and 4th quarters 2007 though it has risen by 2.7% in the year from 4th quarter 2006. This is the lowest annual increase since 4th quarter 1999.
The Maintenance Materials Cost Index fell by 0.8% between 3rd and 4th quarters of 2007, but has risen by 1.4% since 4th quarter 2006.

Maintenance Cost Indices - Percentage Change on Previous Quarter

The BMI Cleaning Cost Index was unchanged in 4th quarter 2007 compared with the previous quarter, and has risen 2.6% in the year from 4th quarter 2006.
The BMI Energy Cost Index was provisionally unchanged in 4th quarter 2007, with the index having now risen by 14.4% in the period 4th quarter 2006 to 4th quarter 2007.
The Retail Prices Index rose by 1.3% in 4th quarter 2007 compared with the previous quarter and by 4.2% between the 4th quarters of 2006 and 2007. This is up slightly on last quarter's increase.
The BMI forecast is for maintenance costs to increase by 3.7% in the year to 4th quarter 2008, and by a further 3.3% over the following year.