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2026 Rating Revaluation – draft figures published

Published : 02/12/2025 by Robert Sherwill

The government has now published the draft 2026 Rateable Values which will come into effect on 1st April 2026. The new rateable values represent the government’s view as to the
rental value of each property in April 2024. The revaluation has been undertaken to ensure rates bills reflect changes in market conditions since 2021.

2026 Revaluation Impact
Change in Rateable Value by sector and region

	All Sectors	Retail	Industrial	Office	Other
England	19%	10%	21%	14%	29%
North East	18%	3%	25%	17%	22%
North West	19%	6%	25%	15%	25%
Yorkshire and the Humber	18%	8%	23%	15%	20%
East Midlands	16%	9%	18%	6%	20%
West Midlands	17%	9%	20%	12%	20%
East	18%	9%	20%	12%	23%
London	22%	13%	24%	14%	45%
South East	20%	10%	20%	17%	27%
South West	18%	7%	19%	19%	24%
Wales	15%	5%	20%	11%	20%

The impact varies considerably by both sector and region. The retail sector has seen relatively modest increases in value. In contrast, the industrial and logistics sector has seen values increase by 21% in England, reflecting the rental growth seen since 2021.

2023 Revaluation Appeal deadline – 31st March 2026

There is a deadline of 31st March 2026 for any appeals to be lodged against the current Rateable Values. Formal appeals against the new 2026 Rateable Values cannot be made until April.

Transitional Relief 2026/27 onwards

There will be no caps on rates reductions. This will mean that a ratepayer with a declining business rates bill as a result of the 2026 Revaluation will benefit from the full decrease immediately.

A 3 year transitional relief scheme will be implemented for those properties facing rates increases as a result of the 2026 Revaluation. The ‘upward caps’ will be 5%, 15% and 30%, respectively, for small, medium, and large properties in 2026-27.

Retail, Hospitality & Leisure Relief

This relief will end on 31 March 2026.

Uniform Business Rates Announcement – 2026/27

The Government has now published the new business rates multipliers for 2026–27.

Property Use	Rateable Value	2025 /26 UBR	2026 / 27 UBR	Change
Retail, Hospitality and Leisure	less than £51,000	49.9p	39.2p	-21%
	£51,000 to £499,000	55.5p	44.0p	-21%
	£500,000+	55.5p	51.8p	-7%
All other Property types	less than £51,000	49.9p	44.2p	-11%
	£51,000 to £499,99	55.5p	49.0p	-12%
	£500,000+	55.5p	51.8p	-7%

The above applies to England only.
The 2026/27 UBR figures include a 1p supplement which is to pay for the cost of the
transitional rate relief scheme. This supplement is not payable by a ratepayer benefiting
from transitional relief.

A key change is the introduction of new, lower Uniform Business Rate (UBR) multipliers for properties in the retail, hospitality and leisure (RHL) sectors. For RHL properties with a rateable value (RV) below £500,000, the lower UBR will become a permanent measure, replacing the temporary Covid-related rate relief schemes previously in place. Unlike those earlier schemes, there is no cap on the amount of benefit a ratepayer can receive from the lower UBR.

A separate new UBR will apply to properties with an RV of £500,000 and above. This higher rate is intended to fund the cost of introducing the lower RHL multipliers.

To meet the cost of the transitional relief scheme, a 1p supplement will be added to all rates bills for 2026/27. This supplement will apply only for that year and only to
properties not receiving transitional relief.

The UBR figures for Wales have not yet been announced.

This article was first published in Allsop's December 2025 Market Update