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2026 Revaluations - Studios

2026 Revaluations - Studios

As the 2026 business rates revaluation approaches, based on April 2024 rental values, Andrea Barnes, Head of Business Rates, is helping film studios and their occupiers understand how rateable value changes, the new multiplier system, and sector-specific reliefs will affect their liabilities.

Andrea's insights help both landlords and production tenants manage risk and maximise the benefits of the government's long-term 40% film studio relief scheme.

Since April 2023, the British Film Commission has worked with a coalition of studios, the Valuation Office Agency, and UK ministers to address escalating business rates. These efforts secured a sector-specific relief scheme and opened discussions about how 2026 revaluations should reflect current market realities—especially given that April 2024 rental values, used as the basis for the new revaluation, were weaker than in 2021.

We predict values will go down 20%-30%

Film studio relief (effective April 2024)

  • A 40% discount applies to the gross business rates bill for qualifying film studios in England.
  • The relief remains in place for a ten-year period (until 2034).
  • Final liabilities are capped at 60% of the gross charge, inclusive of any transitional relief.
  • The relief is applied automatically by local authorities—no application is required by studios.

Key takeaways for film studios

  • 40% film relief provides long-term stability, capping final business rates at 60% of the full charge until 2034
  • Studios with RVs over £500,000 will be hit by the large property multiplier, likely resulting in higher gross bills despite relief
  • Transitional relief is expected but may not fully shield all sites from sharp increases
  • Location-based revaluation adjustments remain under discussion and could influence final RVs depending on regional market health
  • Monitoring draft list releases and appeals deadlines will be essential as 2026 approaches

Impact of the higher multiplier from April 2026

The new tiered multiplier system set to take effect in 2026 will bring additional challenges for large studio properties:

  • Properties with rateable values (RVs) over £500,000 will fall into the large multiplier band, which may be up to 10p higher than the standard multiplier.
  • Iconic studio sites such as Pinewood, Shepperton, Leavesden and Elstree are expected to be affected due to their high RVs.
  • Although the 40% film relief continues to apply, studios will see an increase in their gross (pre-relief) bills, particularly those falling within the large multiplier band.
  • Studios near the £500,000 RV threshold may find themselves in different multiplier bands, depending on their 2026 revaluation outcome.
  • Transitional relief measures are expected to phase in steep increases, with detailed guidance anticipated in the autumn budget 2025.

Tenant tip

Film and TV production companies leasing space at major studios should request a breakdown of projected rates from landlords and clarify lease terms regarding who bears responsibility for any increase. Consider engaging with advisors to monitor RV estimates as the draft rating list nears publication.

Landlord tip

Studio owners should prepare communication plans and financial projections ahead of the 2026 revaluation. Offering tenants transparency around rates, appealing where appropriate, and highlighting the benefit of the 40% relief may help in lease renewals or negotiating new agreements.

Whether you’re preparing for the 2026 business rates revaluation, reviewing your studio 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 production studio 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