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Business Rates

2021 Rating Revaluation - Impact on Business Rates across London

Businesses across the Capital will need to be aware that their rating assessments are currently being re-valued with the new Rating List coming into force on 1st April 2021.

Click on the map to view business rate changes by London area or select an area from the dropdown.


Understanding the London Business Rates Map

The next Business Rates Revaluation comes into effect on 1st April 2021 and will result in large changes in rates payable across London. The Revaluation is based on rental values as at 1st April 2019 with the aim to redistribute the amount of rates payable by relfecting changes in rental values. 

In order to forecast the effects on London offices, Knight Frank has compiled a ’heat map’ of the 16 Central London office sub-markets. The Rates Payable for the current year 2019/20 has been compared to the projected rates payable following the Revaluation in 2021/22.

Those areas with the strongest increases are in dark red and those in the lowest are in blue.

Business Rates Map

 

The highlights of the rates payable changes include;

• Average increase: 17% (all sub-markets)
• Biggest increase 50% (Shoreditch/Clerkenwell)
• Biggest decrease 13% (West End Core)

 

 

1

2

3

4

5

6

7

8

Rates Payable

Paddington

West End Core

North of Mayfair

Noho

Victoria

Soho

Covent Garden

Bloomsbury

2019/20

£25.56

£53.55

£38.94

£29.21

£35.29

£34.08

£31.64

£24.34

2020/21

£26.14

£54.78

£39.84

£29.88

£36.10

£34.86

£32.37

£24.90

2021/22

£33.75

£47.25

£39.38

£39.38

£33.75

£39.38

£33.75

£33.75

Change %

32.06%

-11.76%

-1.11%

34.81%

-4.37%

15.55%

6.66%

38.66%

 

 

9

10

11

12

13

14

15

16

Rates Payable

Euston & Kings Cross

City Core

Holborn

SE1

Shoreditch/
Clerkenwell

Aldgate/

Clerkenwell

Canary Wharf

 

Isle of Dogs

2019/20

£32.86

£28.83

£27.99

£23.85

£22.49

£23.12

£18.26

£11.20

2020/21

£33.61

£29.49

£28.63

£24.40

£23.01

£23.65

£18.67

£11.45

2021/22

£37.13

£31.50

£30.38

£30.38

£33.75

£24.75

£21.15

£14.63

Change %

12.98%

9.26%

8.52%

27.34%

50.06%

7.03%

15.86%

30.62%

 

What has caused these changes? 

The average increase in Rates Payable across central London will primarily be driven by the success of London as a global financial capital. Despite the uncertainty surrounding Brexit, rental values have continued to increase in most submarkets.

Whilst in the West End values on the prime offices in areas such as St James or Berkeley Square have continued to increase, the core market has seen falls driven by an increase in supply. On the other hand, the City Core market has seen a moderate increase with fringe areas such as Shoreditch / Clerkenwell outstripping traditional locations with the rise of the TMT sector around Silicon Roundabout.

How Knight Frank can help you

As one of the leading specialist teams in this sector, we offer a full rates management service which will ensure that this costly overhead is mitigated at every stage.


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