糖心视频

Keith Cooney, Partner, Head of Business Rates, begins, 鈥淏usiness rates are based on two elements. The first is the annual rent that the property concerned would let for on the open market in a fitted state.鈥� He reminded viewers that the Government mandates fixed valuation dates, currently April 2021, moving to April 2024, and emphasised that it is the changes between those dates that will be reflected in the rating assessments.

Central London offices: A post鈥�Covid rebound

Simon Berkley, Partner, opened with an overview of how Central London office values have shifted:

鈥淲hen looking at how business rates are changing for Central London offices, it鈥檚 important to look at where we are coming from.鈥�

He highlighted that the April 2021 valuation date captured a moment when 鈥渢he country was still in lockdown鈥� and the demand for offices in Central London remained low.鈥�

The new April 2024 valuation date 鈥渃aptures that post鈥�Covid recovery.鈥� Simon emphasised the continued 鈥渇light to quality鈥�, with 鈥渄emand for the best鈥�in鈥�class offices remaining high, hampered by a lack of supply.鈥� As a result, 鈥渨e have seen increases as high as 31% in Paddington, 25% in Midtown and 23% in the West End.鈥�

鈥淓very submarket in London has seen an increase, with the exception of the Docklands market outside of Canary Wharf.鈥�

The increase in Rateable Values across the country has allowed the Government to reduce the multiplier quite substantially. That 23% increase in Rateable Value in the West End translates to a lower 15% increase in the actual rates bill next year. Businesses in Canary Wharf, Docklands and Stratford should expect to see a decrease in their actual rates bills next year. 

Regional offices, Industrial and Retail: A varied landscape

Emma Foster, Associate, provided a wide鈥�ranging overview of regional trends, and the three main sectors: offices, industrial and retail, to understand how the regional markets have evolved and how that鈥檚 feeding into the 2026 Rating List.

For regional offices, Emma described a polarised picture. A few centres such as Aberdeen and Cardiff have seen no rental growth, but most major regional cities have recorded strong increases鈥攖ypically 12 to 23%, and sometimes higher.

Cities such as Leeds, Birmingham, Edinburgh and Bristol are seeing uplifts of 30% or more, reflecting a market realignment.

For the industrial sector, the message was even stronger. Rents have grown rapidly and broadly, up to 60% in Manchester and 40% in Birmingham and Bristol.鈥�

Rating List changes were more measured but still show clear upward pressure, particularly in Glasgow and Manchester, where increases of 20鈥�30% bring values closer to the underlying market.

Finally, retail continues to show the widest variation: Some centres are still seeing declines or flatlining, like Cardiff, Sheffield and Aberdeen, while others, notably Edinburgh and Glasgow, are showing renewed strength.

Emma summarised the overall pattern succinctly. 鈥淚ndustrial shows broad鈥�based strength, offices show selective but substantial growth, and retail shows a highly varied, location鈥�driven recovery.鈥� 

View our interactive heat map to see a breakdown across the UK. 

Central London retail: A sector facing a 鈥榙ouble whammy鈥�

Simon took a deeper look into the Central London retail market.

The picture for Central London retail is quite stark. Retail in April 2021 was at a true low point because trade relied on office workers and tourism. Since both have improved, this has led to dramatic changes.

Rateable Values in both Westfields have increased by 44%. The City has also seen a 44% increase with a 40% increase in Canary Wharf and a 35% increase in Lakeside. Only Regent Street and Oxford Street have seen a small 4% decrease.

However, Simon warned retailers that they are being hit with 鈥渁 double whammy.鈥�

Relief has already been cut from 75% to 40%, and now the Government is replacing Retail Leisure and Hospitality Relief with two new, permanently lower multipliers. These are not as generous as the existing relief, meaning those 44% increases translate to a staggering 79% increase in rates liability.

Even where Rateable Values decrease, such as on Regent and Oxford Street, retailers will still see a 20% increase in their rates bills.

Although the current relief is more generous per property, Simon explained that it is capped at £110,000 per business, benefiting small retailers but disadvantaging large ones. The new uncapped multipliers mark 鈥渁 political change鈥� now supporting larger retail chains at the expense of SMEs.

Multipliers and Duty to Notify 

Lorna-Mae Rawlinson, Rate Payment Specialist, and Jeffrey Waters, Partner, then took viewers through the new multipliers, focusing on the impact of the Lower and Standard multipliers, eligibility criteria and Transitional Relief.

Jeffrey summarised the newly imposed Duty to Notify requirements. These obligations require businesses to keep the VOA updated鈥攁n essential part of the new system. This marks a shift toward greater ongoing compliance, making it essential for ratepayers to stay on top of updates as the new rating list comes into force.

If you鈥檇 like to speak to us about Business Rates, please do get in touch. You can also estimate your own rates by using our Business Rates Calculator.

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