RICS launches new edition of its service charges in commercial property standard

The Royal Institution of Chartered Surveyors (RICS) has published a second edition of its service charges in commercial property document. The document is mandatory for RICS-accredited professionals and represents a minimum level of expected compliance.

The new edition updates the one published in 2018 and incorporates several improvements. These changes improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property.

The standard also helps ensure timely issue of budgets and year-end certificates, reduces the causes of disputes and to provide guidance on resolution and provides guidance to solicitors, their clients (whether owners or occupiers) and managers of service charges in the negotiation, drafting, interpretation and operation of leases, in accordance with best practice.

Development of the standard was overseen by an expert group of industry professionals. This includes representatives from several organisations including BDO, The British Council for Offices (BCO), The British Property Federation (BPF), The British Retail Consortium (BRC), The Law Society, The Property Managers Association (PMA), ICAEW and UK Hospitality. First Edition author Peter Forrester FRICS was commissioned to write this update with Jonathan Lovejoy MRICS as co-author.

RICS Head of Professional Practice, Paul Bagust, said: “The first edition of the commercial property charges standard was extremely popular, and its principles are deeply embedded within industry.

“This new edition of the standard incorporates crucial updates that take into account the changes to the sector over the past seven years. The increased breadth and depth of this standard will mitigate disputes and accelerate dispute processes towards conclusion, improving transparency, trust and confidence in all matters related to commercial service charges. The standard is essential reading for anyone working in or around commercial property.”

Peter Forrester FRICS, SCCS Ltd, Co-Author, said: “The second edition of the RICS professional standard continues the evolution, rather than revolution, of industry best practice guidance in the management and administration of service charge in commercial property. The mandatory requirements and the fact the RICS consider the professional standard as a technical standard for the conduct of both members and regulated firms, re-enforces the profile of service charges and the continuing need to operate them with professional scrupulousness, diligence, integrity and impartiality.”

Jonathan Lovejoy MRICS, British Land, Co-Author, said: “It has been a tremendous experience to be part of this review and co-author alongside Peter Forrester. The truly collaborative process allowed us to incorporate points raised by all parties, consider them objectively and professionally. It is remarkable how much the property market has moved since the 1st Edition necessitating updates to the language and examples. This new release strikes a balanced perspective for both landlord and tenants ensuring it continues to shape the very best practice in service charge management.”

Jordan Jeffery MRICS, JLL, Expert Group member, said: “The 2nd edition of the RICS professional standard for Service charges in commercial property is a fantastic ‘guardrail’ for the greater good of the industry. I was delighted to be part of the expert group in respect of the publication, representing the BCO and JLL.”

The new edition of the standard was published on 25 June 2025 and becomes effective on 31 December 2025.

A full version of the standard may be found at this link.