From the 1st April 2023, the VOA’s (Valuation Office Agency) business rates revaluation came into effect for all UK commercial properties. The revaluation compounded the current economic and geopolitical turmoil, having a negative effect on tenants of commercial space across the UK.
In general, the office and industrial sectors will experience an increase in rateable values as they take on more of a tax burden, whilst the retail and leisure sectors will see a decrease in their rates, reflecting the shifts in demands and achievable rents the UK commercial property market has experienced since the last revaluation in 2017.
On average in 2023 and 2024, tenants of commercial space in England and Northern Ireland will be paying over 10% more in business rates under the new revaluation , whilst offices located in Wales and Scotland will pay between 4-6% more. There is, however, a large variation across individual markets and submarkets and therefore will impact some occupiers more than others.