The next business rates revaluation in England and Wales is scheduled for 1 April 2026, based on rental values as of the Antecedent Valuation Date (AVD): 1 April 2024. With the commercial property market having shifted significantly since the last revaluation, landlords, occupiers, and investors should prepare for notable changes in Rateable Values (RVs) across sectors and regions.
Why the 2026 Revaluation Matters
Business rates are calculated based on a property’s Rateable Value, which reflects its open market rental value at the AVD. The 2026 revaluation will reset these values, potentially altering liabilities for thousands of commercial properties.
Draft Rating List Expected October 2025
The draft 2026 rating list is expected to be published in early October 2025, giving property owners and occupiers a preview of their new Rateable Values. This will provide a crucial opportunity to review and, if necessary, prepare to challenge valuations before they come into effect in April 2026.
Sector-Wide Expectations
| Sector | Expected RV Change | Notes |
| Industrial & Logistics | +28.6% | Strongest growth due to high demand and rental increases. |
| Offices | +6.0% | Prime city offices up; secondary offices may fall. |
| Retail | −0.6% | Mixed performance; some high streets still struggling. |
| All Property Types (Prime) | +9.1% | Weighted average across sectors. |
| All Property Types (Total) | +12.5% to +15% | Includes leisure, healthcare, and other uses. |
Regional Variations in RV Changes
| Region | Expected RV Change | Key Drivers |
| London | +5% to +10% | Prime office rents recovering; strong industrial growth in outer boroughs. |
| South West | +8% to +12% | Logistics and industrial demand around Bristol and Exeter. |
| North East | −5% to +5% | Weak retail and office markets; some industrial growth. |
| North West | +5% to +10% | Manchester and Liverpool driving growth in offices and logistics. |
| Manchester (City) | +10% to +15% | Strong demand for Grade A offices and logistics hubs. |
| Wales | −2% to +6% | Cardiff and South Wales industrials up; rural retail flat or down. |
| Midlands (Overall) | +10% to +18% | Industrial/logistics hubs (e.g. East Midlands Gateway, Black Country) booming; mixed retail and office performance. |
| Birmingham | +10% to +20% | Strong logistics growth (Tyseley, Aston); prime offices stable; retail mixed. |
Policy Changes to Watch
- Tiered Multipliers (England only): From April 2026, properties with RVs under £500,000 (especially in retail, hospitality, and leisure) will benefit from lower multipliers, while larger properties will face higher ones.
- Transitional Relief: A new scheme is expected to phase in large RV increases, softening the financial impact.
- Improvement Relief: Introduced in 2024, this offers 12 months of 100% relief on RV increases due to qualifying property improvements.
What This Means for Property Owners and Occupiers
- Industrial landlords should prepare for significant RV increases, especially in high-demand areas like the Midlands and North West.
- Retail occupiers may benefit from stable or reduced RVs, particularly in secondary locations.
- Office landlords should expect divergent outcomes: prime city offices may see increases, while older or less central stock could see reductions.
Inflation Forecasts for September 2025
- Pantheon Macroeconomics: Predicts inflation will peak at 3.7% in September, driven largely by food prices
- Deutsche Bank Research: Forecasts a peak of 3.8%, with inflation averaging 3.3% for 2025 and falling to 2.4% in 2026
- Capital Economics: Slightly more conservative, expecting inflation to rise to 3.7% later in 2025
- Statista: Projects an average CPI inflation rate of 3.2% for 2025, revised up from earlier estimates
What’s Driving the Forecast?
- Food and energy prices are expected to remain volatile and are key contributors to the inflation outlook.
- Wage growth and national insurance cost pass-through are also pushing up prices in some sectors.
- Despite this, inflation is still expected to trend downward into 2026, approaching the Bank of England’s 2% target.
Implication for Business Rates
If inflation in September 2025 lands around 3.5% to 3.7%, the business rates multipliers for 2026/27 could increase by a similar percentage – unless the government intervenes to freeze or cap them, as it has done in recent years.
Based on a 3.7% inflation rate in September 2025, the business rates multipliers for 2026/27 in England would be expected to increase as follows (assuming no government intervention):
- Small Business Multiplier: increasing from 0.499 →0.5175
- Standard Multiplier: increasing from 0.555 → 0.5755
- These figures would be used to calculate business rates bills from 1 April 2026, unless the government decides to freeze or cap the increase, as it has done in some previous years.
Final Thoughts
The 2026 revaluation presents both risks and opportunities. Understanding how your property or portfolio may be affected is key to planning ahead – whether that means budgeting for higher liabilities or exploring reliefs and appeals.
