2026 Revaluations - Retail
2026 Revaluations - Retail
2026 Business Rates Revaluation: What Retail, Hospitality & Leisure Businesses Need to Know
A new three-band multiplier system will apply to properties based on rateable value: small (under £51,000), standard (£51,000–£499,999), and large (£500,000 or more).
With many operators in core retail cities facing sharp valuation increases and the end of relief schemes, Andrea’s insights below help occupiers and landlords manage cost risk and navigate appeal opportunities with confidence.
Hover over the map to find out how the 2026 business rates revaluation will impact the industrial markets and the logistics sector in Manchester, Birmingham, London and Leeds
Key Takeaways
- Regeneration projects push rental values and RVs upward by 20–25%
- Large retail and hospitality sites bear the brunt of rate increases
- Smaller operators face growing costs despite some multiplier relief
- Rising visitor numbers and events underpin market resilience
Tenant tip:
Leverage increased footfall by enhancing the experiential offer in your retail or hospitality space to help offset rising costs.
Landlord tip:
Use tourism and regeneration data in marketing to attract tenants. Consider flexible rent structures linked to business performance for new or expanding occupiers.
- Moderate RV growth of 20–25% driven by steady rental recovery
- Larger properties see more significant rate increases, but fewer fall into the premium band than in London
- Smaller businesses face margin pressure and uneven footfall patterns
- The market is polarised between flagship locations and smaller operators
Tenant Tip
Review your RV relative to local comparables, especially if your property is outside prime areas, and consider appealing if values seem disproportionate.
Landlord Tip
Implement flexible leasing options for smaller or at-risk tenants. Short-term or turnover rents may help preserve occupancy and tenant viability.
- Core retail hubs maintain strong rental and RV growth of 20–25%
- Large city centre sites experience sharp rate increases under the new multiplier
- Peripheral high streets face rising vacancies and financial pressures
- Local authorities warn of business closures if support is withdrawn too quickly
Tenant tip:
Stay informed on local relief schemes and hardship funds, particularly if operating outside core zones, and prepare financially for rate increases.
Landlord tip:
Invest in property improvements or mixed-use redevelopment in weaker areas to attract new tenants and potentially access regeneration support.
- Prime retail locations see sharp RV increases fueled by luxury sector rebound
- The premium multiplier disproportionately affects flagship stores with high RVs
- Smaller units may benefit from lower multipliers but are still hit by rising valuations and relief expiries
- Increasing staffing, rent, and utility costs compound financial pressures
Tenant tip:
Request a lease review or renegotiation if rents have not kept pace with rising RVs. Consider turnover-based rent models to better manage cost volatility.
Landlord tip:
Engage proactively with tenants to discuss appeals and transitional relief. Offering flexible lease terms can help retain occupiers in a challenging cost environment.
Preparing for the 2026 Revaluation:
What Ratepayers Should Do
To prepare effectively, businesses should:
- Assess current rateable values to forecast potential impacts
- Understand how the new multiplier bands affect their business rates
- Consult specialists to challenge valuations where appropriate
- Monitor announcements on transitional relief schemes
Early preparation is key to minimising financial shocks and maintaining operational stability.
Whether you’re preparing for the 2026 business rates revaluation, reviewing your office valuation, or planning leasing strategies, Andrea Barnes and the Rerate team provide clear, practical advice to help you stay ahead.
Need expert support with UK office market business rates? Contact Andrea Barnes directly for tailored guidance on navigating the upcoming changes.
Get in contact for tailored support on navigating the 2026 revaluation
