BCIS reveals updated five-year maintenance, cleaning and energy forecast

Maintenance costs, as measured by the BCIS All-in Maintenance Cost Indices – General index, are forecast to rise by 15.3% over the five years to 2Q2031, according to the latest forecast data from the Building Cost Information Service (BCIS).

Cleaning costs are expected to increase by 23.6% over the same period, driven primarily by labour costs. Energy costs are forecast to rise sharply in 2026 before falling in 2027 and 2028, although geopolitical tensions leave the outlook highly uncertain.

Dr David Crosthwaite, chief economist at BCIS, said: ‘Facilities managers continue to face rising maintenance and cleaning costs alongside constrained budgets and volatile energy prices. Although annual cost inflation is expected to moderate, organisations will need to budget for sustained increases over the next five years.

‘Labour remains the main driver, reflecting wage growth, increases in the National Living Wage and the higher employers’ National Insurance contributions introduced in 2025. Slower inflation will ease the pace of cost increases, but it will not reverse the increases already built into expenditure.’

Maintenance costs increased by 2.2% in 2Q2026 compared with the previous quarter, resulting in annual growth of 4.3%.

Cleaning costs increased by 9.0% in the year to 2Q2026. Cleaning labour costs are forecast to rise by 24.4% over the five-year period, compared with a 7.6% increase in cleaning materials costs. Annual cleaning cost inflation is expected to remain at around 4% or above through to 2Q2031.

Repair and maintenance (R&M) output is forecast to grow by 0.7% in 2026 and 1.0% in 2027, with growth strengthening to 1.9% in 2028. Overall, R&M output is expected to increase by 7.8% between 2026 and 2031.

Dr Crosthwaite added: ‘Demand for repair and maintenance is supported by the need to maintain and upgrade existing assets, meet regulatory and sustainability requirements, and extend the operational life of buildings and infrastructure. However, weak economic conditions and high financing costs are expected to keep activity growth subdued in the near term.

‘Reliable benchmarking helps organisations assess cost movements, test budgets and make informed procurement decisions as these pressures develop.’

Energy costs, as measured by the BCIS Energy Cost Indices – General index, are forecast to increase by 28.7% in 2026 before falling by 13.2% in 2027 and by 14.6% in 2028. Smaller movements are expected thereafter.

Dr Crosthwaite said: ‘Energy remains the biggest source of uncertainty. The forecast anticipates costs falling after this year’s sharp increase, but prolonged disruption to oil and gas supplies could keep prices higher for longer.

‘Organisations should test the effect of different energy price scenarios on their operating budgets and contracts, rather than assume a smooth path to lower costs.’

For more information about BCIS, please visit: www.bcis.co.uk

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Editors notes

The Building Cost Information Service (BCIS) is the leading independent provider of construction data to the built environment and insurance sectors. For some 60 years, BCIS has been collecting, collating, analysing, modelling and interpreting cost information to support built environment professionals, helping them provide cost advice, to have confidence in commercial decision-making and to mitigate risk.