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Published: 02/09/2025
The cost of building activities associated with schedules of dilapidations increased by an average of 10.09% in 2Q2025, compared to 2Q2023, according to new rates published by BCIS.
The increase is an average of the rates across all trades covered in the dataset, which is published in BCIS OpX and updates the previous 2024 edition.
Rate increases were not uniform across the trades, with some more affected than others. While there was an average 4.24% increase in upper floors, the average uplift in costs associated with frames was 13.43%.
Source: BCIS Dilapidations Estimating Prices
The rates reflect wider movement in costs over the last two years. Although materials cost inflation, which peaked at 25.2% annual growth in the BCIS Materials Cost Index in June 2022, has cooled, prices haven’t tended to fall.
Karl Horton, data services director at BCIS, said: ‘Rising costs linked to preparing, negotiating and carrying out schedules of dilapidations highlight the value of using dependable data, both for accurate budgeting and for managing cash flow.
‘The potential impact on tenants can vary significantly depending on the type of property and the basis on which early cost advice is given.
‘It’s also positive to see greater discussion of sustainable approaches to dilapidations. Traditionally, the cycle has created a lot of unnecessary waste. For instance, an office may be stripped of fixtures and fittings at lease end, only for a new tenant to install similar replacements.
‘If fittings remain in good condition, their useful life shouldn’t be assumed to end with the tenancy, especially when embodied carbon is taken into account. Encouragingly, more landlords and tenants are now agreeing to retain elements where appropriate, cutting both costs and waste.
‘Alongside reinstatement, replacement and new work, our dataset also reflects the cost of repairs and cleaning across residential, commercial and industrial properties.’
Although there are important differences between dilapidations claims in different countries, the price information presented in the dataset applies across the UK, subject to appropriate location adjustments being made.
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