The Royal Institution of Chartered Surveyors (RICS) have published a new 2025 update to the Professional Standard for service charges in commercial property, which will take effect on 31 December 2025.
A link to the new professional standard can be found here: https://www.rics.org/content/dam/ricsglobal/documents/standards/Service-Charges-in-Commercial-Property-2nd-edition.pdf
The accompanying RICS statement proffers that it incorporates improvements to improve standards generally and promote best practice in relation to the management and administration of commercial service charge. It also suggests it aims to reduce the cause of disputes.
Several of the sections have been amended and updated to reflect the current law and best practice. The update to the dispute resolution section to confirm that an occupier cannot withhold payment of service charges that have been properly demanded, re-enforcing the “pay now, argue later” approach.
Recommended timescales have been updated for issuing service charge budgets, and year end accounts, to 1 month prior to the service charge year and within 4 months of the service charge year ending, respectively.
There remains an overall promotion of transparency throughout, with mediation and expert determination still considered the most appropriate alternative dispute resolution processes for service charge disputes.
A link to the new professional standard can be found here: https://www.rics.org/content/dam/ricsglobal/documents/standards/Service-Charges-in-Commercial-Property-2nd-edition.pdf
The RICS have also published a document setting out the basis for their conclusions, which shows renewed emphasis on appropriate charging of management fees, competitive placing of insurance, and the funding of future expenditure.