Non-Domestic Property Rateable Values – 2023 Revaluation Results
The rateable value is used by Local Authorities in the calculation of business rates bills, which also considers any reliefs for which a property is eligible. Periodic revaluation enables business rates payments to be more fairly distributed fairly across sectors and locations, to reflect changing markets.
Revaluation of the rateable values of the 2.14m non-domestic property in England and Wales took effect on 1st April 2023 – the first revaluation for six years. A base date of 1st April 2021 was selected due to the significance of the Covid-19 pandemic.
Headline market sector results of the 2023 revaluation are:
Retail – an average decrease in rateable values of around 10%. This sector was hit hard by the pandemic and the effects of the lockdown, which drove consumers towards online retail.
Licensed premises were impacted by the Covid-19 pandemic, with a 17% average decrease in rateable values. The Valuation Office implemented an adjustment for COVID-19 within this sector.
Offices saw an overall increase of circa 10% in rateable values, although London markets were hit hardest by the pandemic and saw the lowest increases in this sector.
Logistics – encompassing warehouses, distribution and data centres – saw a 35% growth in rateable value. A surge in an already rising demand for online shopping drove demand for properties in this sector; increasing rents which reflects in the revaluation.
In the Autumn 2022 Budget Statement, the government stated an intention to be more responsive to swiftly changing markets, with a view to increasing the frequency of revaluations to every three years.
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