The first revaluation of premises since the recession demonstrates what most already knew: London property has outperformed the rest of the country. The review will see London rates bills soar by an average of 11% – an overall increase of £885 million on this year – while every other region will enjoy reductions of up to 11%, with the largest in the North East, North West and Yorkshire and Humber.
London retailers will be hardest hit, with a total £254 million increase in their bills, while office occupiers in the north will see the largest reductions, of up to an average of 21% for those in the North East and Yorkshire and Humber.
While the revaluation is likely to come as a welcome relief to tenants and landlords in the regions, it also highlights the disparity between London and the rest of the country.
Behind the averages though will be some dramatic changes in individual Rateable Values. The Government has confirmed that large rates increases and reductions will be phased in over a five-year period. On larger properties however the cap on increases is proposed to be substantially raised and those with Rateable Values over £100,000 could potentially see an overnight 45% increase in their rates bills.
Notes to editor
Robert Sherwill is partner at Allsop and heads up the Business Rates team.
He specialises in the retail sector and has a vast range of experience. Robert is Chairman of the influential Rating Surveyors Association Retail Panel and is a past member of the RICS Rating and Local Taxation Policy Panel. He is responsible for chairing the rate appeal negotiations in many high profile retail locations including London’s Oxford Street and Westfield London. In 1999 he established and has since run the nationwide scheme used by rating agents to identify rate saving situations on shops.
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