Average total expenditure fell by -1.2% in 2012 to £80 per acre (£198 per ha) despite significant inflationary pressure on many input costs. Our survey shows that the two main costs, property repairs and management, which represent three quarters of all costs and a third of gross income, both fell.

Average property repairs decreased -1.5% across ’All Estates’ to
£43 per acre (£107 per ha) and represented just over a fifth of gross income (see Graph 8) and a half of total expenditure. A dearth of
work in the construction industry capping labour costs may have
been a factor.

However, capital improvement on the average estate increased 30% to almost £25 per acre (£62 per ha) probably driven by the movement of properties into market rent tenancies as previously discussed and there were favourable capital allowances during the year.

Average total management costs across ‘All Estates’ fell by a significant -6% in 2012 to £23 per acre (£57 per ha). A closer analysis of the figures shows that the saving was made in the estate office, where the average running cost fell 20% to £7.73 per acre (£19 per ha) – the lowest level since 2006.

Management fees increased slightly (1.6%) to £12.56 per acre
(£31 per ha). Notional costs attributed to the owner represented
the balance.

Other costs on ‘All Estates’ increased by 5% to £21 per acre
(£52 per ha), as illustrated in Table 1 above.

Unsurprisingly, the highest average property repair and management costs are on estates with the highest density of residential and commercial assets, notably those in the South East of England.