Rates Revaluation

2026 Rating List – Key Changes 

The 2026 Rating List has now been published, bringing significant changes to business rates across most sectors. The new Rateable Values (RVs) are based on rental values as at 1 April 2024, compared with 1 April 2021 for the current list. As a result, the new valuations capture the post-Covid recovery, with increases seen across the majority of the country. Nick Bell, Partner at Baker Street Quarter Partnership member Knight Frank, sets out below what this means for your business.  

Offices 

West End office Rateable Values have increased by an average of 23%. However, the Government has reduced the standard multiplier from £0.555 to £0.480, which limits the impact on rates bills. As a result, the average increase in liability is around 15%. 

In the Baker Street Quarter area of Marylebone, offices have fared better than average, with a 15% rise in Rateable Value translating to a 6% increase in liability. Larger offices (RV over £500,000) will see a slightly higher increase of around 8.5% due to a new supplement. 

Retail 

Retail Rateable Values have risen by an average of 12% across Westminster and 21.48% in the Baker Street Quarter area, with significant variation between locations. 

The 40% retail rates relief has been removed and replaced with lower permanent multipliers of £0.382 (RV under £51,000) and £0.430 (RV £51,000 – £500,000). While this generally increases liability for individual stores, the removal of the £110,000 relief cap per business will benefit larger retailers with multiple properties. 

Hospitality and Leisure 

Hospitality operators, particularly hotels, have seen the largest increases in Rateable Values, in some cases doubling or tripling. Transitional Relief will phase in these increases over the three-year life of the Rating List, and an additional support package has been announced for public houses. 

The team at Knight Frank, recently published a Business Rates Revaluation webinar, with expert insights on what’s changing and how it impacts your business. View the Knight Frank Business Rates Revaluation webinar here.