Every few years, the rateable value of commercial properties across England and Wales is reset to reflect current market conditions. The next revaluation takes effect on 1 April 2026, and it's bringing some significant changes.
We've put together this guide to help you understand what's happening and what it might mean for your business rates bill.
Why is this revaluation happening?
Revaluations exist to keep business rates aligned with the property market. The 2026 rating list will be based on rental values from April 2024, replacing the current list, which used April 2021 values. These new values will stay in place for three years, until March 2029.
At the same time, the government adjusts the business rates multiplier to keep the total tax collected roughly the same (aside from inflation). This means the tax burden shifts between different sectors and locations, rather than everyone paying more across the board.
The big picture: values are rising overall
Nationally, the total rateable value is increasing from £70.8 billion to £84.4 billion; a rise of 19.2%.
Your business rates are calculated simply as: Rateable Value × Multiplier = Your Rates Bill
So changes to your property's rateable value will be the main factor in whether your bill goes up or down.
The impact varies significantly by sector and location
Here's what makes this revaluation particularly important to understand: the changes aren't uniform.
Retail, industrial, and office properties are seeing very different impacts. And within each sector, location makes a huge difference. Some regions are seeing strong increases in rateable values, while others face modest rises or even reductions.
In practical terms, two similar properties in different areas could see very different changes to their bills. Understanding what's happening in your specific market is crucial.
Some good news: multipliers are coming down
The multipliers (the percentage applied to your rateable value) are reducing across the board. This will help offset higher rateable values for many businesses.
However, the system is getting more complex. Instead of two multipliers, there will now be five, including new ones specifically for Retail, Hospitality and Leisure properties. These replace the previous retail relief scheme that capped support at £110,000 per business.
Lower multipliers are positive, but the additional categories make it harder to estimate your future liability than it has been in previous cycles.
Increases will be phased in, but not for everyone
The government has introduced transitional relief to cap how much your bill can increase year-on-year. This works by comparing your 2025/26 bill with what the new valuation would produce, then limiting the annual jump.
The caps depend on your property size:
Small properties (under £20,000 rateable value): increases capped at 5% in year one, 10% in year two, 25% in year three
Medium properties (£20,000 to £100,000): increases capped at 15% in year one, 25% in year two, 40% in year three
Large properties (over £100,000): increases capped at 30% in year one, then 25% in years two and three
Not all properties qualify for this protection. Those that don't will pay a small supplement on their multiplier to fund the scheme for others.
There are also additional measures, including protections for small businesses losing Small Business Rates Relief, extended relief when you take on a second property, and 100% relief for EV charging points and forecourts for ten years.
What this means for you
This isn't just a routine update. The 2026 Revaluation will create winners and losers, and the differences could be substantial depending on your sector and location.
Taking time now to understand how your property has been valued, which multiplier applies to you, and whether transitional relief will provide any protection will help you plan effectively for the next three years.
If you'd like to talk through what these changes might mean for your business, we're here to help. Kontor works with specialist rating advisers who can assess your exposure, interpret the valuations, and identify opportunities to challenge assessments or reduce liability where appropriate.
Get in touch with the Kontor team to discuss your situation.