• Foreword
• Introduction
• Executive summary
• The database
• The classification of parks
• Average service charge
• Service charges components
• Average budgets 2007
• Reconciled service charge cost comparison to OSCAR 2006
• Budget comparison to 2007
• Budget to reconciliation comparison 2006
• Reconciled service charges by size and park class
• Reconciled service charges by location and park class
• Reconciled service charges by location, size and park class (benchmarks)
• Budgets by location, size and park class (benchmarks)
• Definition of terms
• Geographical areas
• Expenditure definitions
• Data contributors
• Contact us
• Download OSCAR PDF

Executive summary

The accurate measurement and monitoring of costs set out in the OSCAR report is an essential tool for the Chartered Surveyor in developing effective property management strategies and measuring management performance.

The RICS has worked closely with Jones Lang LaSalle to ensure that the new industry Service Charge cost categories are compatible with those used in OSCAR. The highly respected OSCAR work is a considerable contribution towards our objective of more consistency and transparency within the property management sector.

Christopher Edwards
Chair, RICS Service Charge Group
Chair, RICS International Commercial Property Faculty

• An increase of over 65% in the number of Parks in the database and now represents roughly a quarter of all 'multi unit' Parks in the UK.
• The average 2006 reconciled Service Charge is £0.96 per sq ft (£10.33 per sq m) while the average rate for 2007 budgets is £1.10 per sq ft (£11.84 per sq m).
• The average 2006 reconciled Service Charge on Bulky Goods Parks is £0.68 per sq ft (£7.32 per sq m), on Retail Parks is £0.96 per sq ft (£10.33 per sq m) and on Shopping Parks is £1.26 per sq ft (£13.56 per sq m).
• The average 2007 Budget on Bulky Goods Parks is £0.83 per sq ft (£8.93 per sq m), on Retail Parks is £1.08 per sq ft (£11.63 per sq m) and on Shopping Parks is £1.42 per sq ft (£15.29 per sq m).
• Cost increases are ahead of inflation (RPI) with service expenditure for 2006 over 7% higher than 2005, but the increase for the same Parks 2005 to 2006 is 10.23%.
• Budgets also show an ahead of inflation rise with increases from 2006 budgets of over 15% (over 11% on the same Parks in each year).
• Reconciled Service Charges for 2006 are 3.22% above Budgets for 2006.
• Labour remains the most significant contributor to costs. Security and Landscape Maintenance (mainly labour) - represent nearly 57% of the average service charge from just below 60% last year.
• 'Repairs' (Hard Services) remains a highly variable component representing over a fifth of expenditure.
• Economies of scale appear to exist, where the larger the Retail Park, the lower the overall Service Charge rate per unit area.
• Regional locations will influence costs, the North being cheaper than the South although this is quite often masked by qualitative influences.