Business rates revaluation 2026: What Car Showroom operators need to know

The Autumn Budget introduced permanently reduced business rates multipliers for the Retail, Hospitality, and Leisure (RHL) sectors:

• Properties with rateable values below £51,000: 38.2p (vs. 43.2p for non-RHL)
• Properties between £51,000 and £500,000: 43p (vs. 48p for non-RHL)
• Properties above £500,000: 50.8p

These multipliers are lower than current levels, but many properties with larger increases in rateable value will still face significant increases in overall liability, even after factoring in the £4.3bn transitional support package.

Properties that do not reach the transition caps will be subject to a 1p supplement.

If a property becomes vacant, once any empty property relief expires, liability will be recalculated using the higher non-RHL multiplier.

Impact on the Car Showroom sector

Across England and Wales, the 5,270 hereditaments in the Car Showroom category saw an average 12.7% increase in RV.

This rise is lower than expected and provides some relief, particularly since showrooms are grouped within “Other” non-bulk properties - a category that has seen some of the largest increases nationally. By comparison, Retail increased by 9.3% overall, with much of that uplift in the South East.

However, this limited increase means many operators will be subject to a 1p “stealth tax” in 2026/2027 to help fund the transitional relief scheme for other ratepayers.

Related sectors:

• Car Supermarkets (70 hereditaments): +16.3%
• Car/Caravan Sales sites (3,800 hereditaments): +21.8%

Why is this increase problematic?

The 2023 List delivered a 25.1% increase for car showrooms, based on a valuation date of 1 April 2021 - a period marked by some of the harshest trading conditions the industry had faced since the financial crisis. This uplift reflected perceived rental growth which, in Knight Frank’s view, was not justified.

For 2026, with a valuation date of 1 April 2024, the new 12.7% increase layered on top of the prior 25.1% rise is another significant burden and does not reflect the real-world complexity of the car sales market.

Knight Frank will be contesting both the 2023 and 2026 increases through coordinated national action, backed by market evidence and industry insight.

Ongoing review of the 2023 List

The 2023 Rating List remains open, and ongoing review and challenge before 1 April 2026 will be critical, as any adjustments may directly impact how transition applies. This could meaningfully reduce liabilities in future years.

 2026: Multipliers (Summary)

 2026: Transition

**Gov.uk

How Knight Frank can support you

Our Business Rates specialists are actively reviewing and challenging values ahead of the 2026 List, ensuring operators:

• Minimise liabilities through robust appeals
• Understand transitional impacts
• Manage budgetary implications early
• Access expert, sector-specific guidance

Knight Frank’s 2026 business rates calculator will be updated in the new year.

For more advice, please contact the Business Rates team.