Business rates revaluation 2026: what it means for industrial and logistics occupiers

The new list came into effect on 1 April 2026, updating rateable values to reflect market conditions as of 1 April 2024. Across the industrial sector, rateable values have increased by over 20%, reflecting the rental growth seen in many logistics and distribution markets over the previous cycle.

However, a change in rateable value is only part of the picture. The multiplier and transitional relief arrangements applied to bills differ between England and Wales. Occupiers need to understand both how individual assessments have been calculated, and how any increase will feed through to future costs.

How industrial and logistics properties are valued for business rates

The assessment of an individual asset may be influenced by factors including:

• location and access to key distribution networks
• unit size and building specification
• loading provision and yard configuration
• site layout and operational functionality
• evidence from comparable lettings nearby

Modern distribution warehouses can attract materially different valuation levels to older or more secondary industrial units. As a result, the way an asset has been categorised and benchmarked can have a significant effect on its rateable value – particularly in locations where rental evidence has improved.

Where industrial rateable values have increased

Industrial rateable values have risen by an average of 21.1% at the 2026 revaluation. The scale of change varies across England and Wales:

• 25% or over: North East
• 20–25%: North West, Yorkshire & Humber, West Midlands, Wales and London
• 15–20%: East Midlands, East of England, South West and South East

These movements reflect differences in rental growth, supply constraints and demand for modern industrial and logistics space across individual markets.

For occupiers, the scale of increase makes accurate assessment increasingly important. A rateable value that does not properly reflect a property's size, specification, configuration or rental conditions may significantly affect liability over the life of the list. For many, this will represent a step change in cost.

How higher rateable values may affect liabilities

In England, most industrial and logistics properties fall within the non-retail, hospitality and leisure multiplier structure. For 2026/27, the standard non-domestic multiplier is 48.0p, while properties with a rateable value of £500,000 or more are subject to the high-value multiplier of 50.8p.

This is particularly relevant for occupiers of major distribution warehouses and larger logistics portfolios, where higher rateable values may be compounded by the high-value multiplier.

The impact is not uniform. Wales operates its own multiplier structure. For 2026/27, the Welsh standard multiplier is 50.2p, while a higher multiplier of 51.5p applies to the largest properties by value.

Transitional relief may help offset the immediate impact of revaluation-driven increases, but arrangements differ between England and Wales. In England, eligible increases are capped under the redesigned Transitional Relief scheme.

In Wales, ratepayers whose liability increases by more than £300 as a consequence of revaluation may have the increase phased in over two years, rising to full liability in the third year.

Occupiers should therefore consider not only the headline movement in rateable value, but the resulting cost profile across the full rating-list period.

Reviewing 2026 Rating List assessments

Checks can now be submitted against the 2026 Rating List. Given the level of change across the industrial sector, an early review can help occupiers identify whether assessments accurately reflect their properties and the relevant valuation evidence.

Potential issues may include:

• incorrect measurements or property details
• inappropriate rental comparables
• assumptions about specification or configuration
• changes arising from extensions, refurbishments or tenant fit-out
• portfolio inconsistencies across similar assets

The deadline for submitting a check against the 2023 Rating List has passed. However, exceptions may still be made in specific circumstances. Specialist advice should be taken where there may be issues relating to the previous list.

Beyond cost, the way the system operates is also changing.

Preparing for new information requirements in England

The 2026 revaluation also coincides with the phased introduction of new information requirements for ratepayers in England.

Once the new duty applies, ratepayers in England will be required to notify the Valuation Office Agency of certain changes affecting their properties, including changes to occupation, leases, rents and physical alterations. Annual confirmation requirements will also apply.

These measures are expected to be introduced in phases, with mandatory compliance for all ratepayers in England by 1 April 2029. For industrial and logistics occupiers – particularly those with extensive portfolios or active programmes of alteration and development – preparing reliable systems for property and lease-event information will become increasingly important.

How Knight Frank can help

The 2026 Rating List brings higher rateable values and differing national liability arrangements into sharper focus for industrial and logistics occupiers. In England, occupiers will also need to prepare for the phased introduction of new information requirements. We can support occupiers by:

• reviewing and interpreting 2026 Rating List assessments
• benchmarking properties against relevant rental evidence
• identifying and pursuing appropriate challenge opportunities
• modelling liabilities across assets and portfolios
• advising on the rating impact of extensions, refurbishments and tenant fit-out
• supporting occupiers with empty property exposure and new sites entering assessment
• supporting occupiers in England to prepare for Duty to Notify and wider compliance requirements

For tailored advice on the impact of the 2026 Rating List on your industrial or logistics assets, please contact our Business Rates team.

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