London Office Business Rates: Does Your 2026 Valuation Reflect Today’s Market?
London businesses entered the new rating period in April with updated rateable values, and for many office occupiers the change has been significant.
Across London, average rateable values increased by more than 20% following the 2026 revaluation. But behind that headline figure sits an office market that is far from uniform.
Demand for high-quality, well-located offices remains strong, while older and secondary space can face very different market conditions.
For office occupiers, that raises an important question: does your new rateable value accurately reflect the office you occupy?
London’s office market is changing
The 2026 Rating List is based on rental values at 1 April 2024, rather than today's market. That matters in a fast-moving market such as London.
Recent market evidence points to particularly strong rents for prime offices in locations such as the City and West End, while the gap between best-in-class and secondary accommodation has continued to widen. Occupiers are placing a premium on factors such as location, quality, ESG credentials and offices that are ready to occupy.
It therefore becomes increasingly important that individual properties are considered on their own merits rather than assuming the wider London market tells the whole story.
What determines an office rateable value?
Office valuations are typically informed by rental evidence from comparable properties, with adjustments made to reflect the characteristics of the accommodation.
Location, floor level, quality and the way different parts of a property are used can all influence an assessment. The VOA itself uses different valuation scales for Central London offices and other London locations, reflecting the variation within the market.
For businesses occupying older or secondary offices, the question is whether the evidence used to determine the 2026 RV properly reflects those differences. A strong prime office market does not automatically mean every London office should experience the same movement in value.
Higher rateable values can have wider implications
For larger London offices, the new RV can also affect more than the starting point of the rates calculation.
Properties with an RV of £500,000 or more are now subject to the higher-value business rates multiplier. In the City of London, businesses must also account for the City's own additional multiplier, while properties above the relevant threshold may be liable for the Crossrail Business Rate Supplement.
Transitional Relief can limit how quickly bills increase following revaluation, but this does not necessarily mean the underlying RV is correct. That makes understanding the assessment itself particularly important for businesses occupying high-value London offices.
Has your rateable value increased in 2026?
If your office RV has risen substantially, it is worth understanding what sits behind that increase.
The London office market has changed considerably, but those changes have not been consistent across every building, location or type of accommodation.
If you're unsure whether your 2026 assessment fairly reflects your office, CPA can review the valuation and the evidence behind it to establish whether there may be grounds for a reduction.
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We just need a few details about your property. If you’re able to upload your latest business rates bill, this will give us a clear view of your current assessment and allows us to begin straight away.
This initial review is simply to identify whether savings can be made and there is zero obligation.
We carry out a full risk assessment before taking any action, ensuring your position is protected, and our no-saving, no-fee service means we don’t charge any fees unless a saving is secured.
