Business rates revaluation 2026: what office occupiers need to know

The latest Rating List reflects the recovery in office demand following the pandemic, together with a continued ‘flight to quality’ in many markets. While higher rateable values are a key driver of change, the introduction of new multipliers and supplements means occupiers must look beyond valuation alone to understand how their liabilities will be affected.

The 2026 Rating List

Changes in rateable values need to be viewed in the context of the previous list. In the previous 2023 Rating List, rateable values reflected rental values at a valuation date of 1 April 2021. At that point, the country was still emerging from lockdown and demand for office space was subdued.

For the 2026 Rating List, values are based on market conditions as of 1 April 2024, reflecting how the office sector has recovered since the pandemic. This has coincided with continued strong demand for prime, best-in-class office space, constrained by limited supply. For many occupiers, this has translated into a material increase in rateable value – particularly in the most sought-after locations.

Across England and Wales, office rateable values have increased by an average of 14%. The reduction in the multiplier is intended to offset this uplift, meaning only properties with increases above this level are likely to see a corresponding rise in liability.

The largest uplifts in key cities include:

• Cambridge: +50%
• Leeds: +38%
• Edinburgh: +35%
• Birmingham: +29%

London has also seen significant increases, including:

• Paddington: +31%
• Midtown: +25%
• West End: +23%  

The multiplier and additional costs

Rateable value is only one part of the equation when calculating business rates liability; the other is the multiplier.

While revaluation increases values in line with rental growth, the overall tax take is intended to remain broadly neutral. To offset rising values, the Government has reduced the base multiplier.

The standard multiplier for rateable values above £51,000 has fallen from £0.555 to £0.480, while the small business multiplier has dropped from £0.499 to £0.432.

For some occupiers, this will partially offset increases in rateable value. However, the picture is not uniform. There are also additional supplements and new thresholds, which mean costs are becoming more complex to assess. They include:

• a £0.01 supplement applied to all properties in 2026/27 – used to fund transitional relief (see below)
• a higher multiplier of £0.508 for properties with a rateable value above £500,000
• the Crossrail supplement (£0.02), which applies to London offices with a rateable value of £92,000 or more – plus additional local levies in areas such as the City of London

The combined effect is a more layered and less transparent pricing structure for occupiers. The interaction between the changes is set out below:

Transitional Relief

Transitional Relief will help to phase in increases in rates bills, limiting how quickly costs rise for properties seeing significant uplifts. The bands are:  

All caps are before other reliefs, local supplements, and in years 2 and 3, inflation. Caps are cumulative.

While this provides short-term protection, it does not remove the underlying increase in liability – meaning many occupiers will still face higher costs over the life of the list.

Key actions for ratepayers

Each new revaluation brings with it a new window to lodge appeals. With the Valuation Office Agency reassessing every property in England, Scotland and Wales, it is important that ratepayers review their new valuation in detail and consider whether it has been set at the correct level.

Appeals can also be submitted on other grounds, including where an office is impacted by building works either within the property or in the immediate vicinity.

However, it is important to recognise that rateable values can increase as well as decrease through the appeals process, and professional advice should be taken before starting any appeal.

Preparing for new information requirements in England

The 2026 revaluation also marks the introduction of new information requirements for ratepayers in England, to be phased in over the coming years.

Once in place, occupiers will be required to keep the Valuation Office Agency updated on changes affecting their properties, within specified timeframes, alongside annual confirmation obligations. This change places greater emphasis on the quality and timeliness of property data.

For office occupiers, particularly those managing larger or more dynamic portfolios, this is likely to require more consistent monitoring of lease events and closer coordination between property and finance functions.

How Knight Frank can help

The 2026 Rating List introduces a more complex picture for office occupiers, combining changes in rateable values with a broader range of multipliers and supplements.

Our Business Rates team works with occupiers to navigate these changes, supporting clients to:

• assess and interpret 2026 Rating List valuations
• benchmark assets against relevant market evidence
• identify and pursue appropriate appeal opportunities
• model the impact of rate changes across assets and portfolios
• advise on the implications of lease events, refurbishments and changes in occupation
• support preparation for Duty to Notify and evolving compliance requirements in England

For tailored advice on how the 2026 Rating List affects your office portfolio, please contact our Business Rates team.