What is happening to business rates after the 2026 revaluation?

The 2026 business rates revaluation has now taken effect, with rateable values changing for commercial properties across England and Wales.

For many businesses, the immediate focus has been on the size of the increase - but the percentage change in rateable value is only part of the picture.

At Rating Matters, we have started reviewing commercial properties affected by the 2026 revaluation. Our early cases are beginning to show some interesting patterns in where assessments may warrant further investigation.

Our initial sample is still relatively small, so these figures should be treated as early indications rather than a definitive picture of the wider rating list. However, the evidence provides a useful indication of the scale of some potential adjustments.

Early evidence from 2026 assessments

Across our early cases, the average 2026 rateable value uplift is approximately 41%.

In every property reviewed so far, our initial screening has identified some indication that the 2026 assessment warrants further investigation.

Among these early cases:

• Average indicative rateable value reduction: approximately £35,250
• Median indicative rateable value reduction: approximately £35,250
• Average estimated annual rates difference: approximately £19,250
• Median estimated annual rates difference: approximately £19,250

These figures are indicative rather than guaranteed outcomes. A potential reduction identified during an initial review still needs to be supported by appropriate evidence and, where applicable, established through the statutory valuation process.

Two early examples

The potential scale of adjustments can vary considerably depending on the property.

Holiday and caravan site - East of England

An anonymised holiday or caravan site in the East of England has an indicative potential rateable value reduction of approximately £47,500.

Based on the relevant business rates calculation, this could represent an estimated annual rates difference of approximately £25,900.

Retail premises - London

An anonymised retail premises in London has an indicative potential rateable value reduction of approximately £23,000.

This could represent an estimated annual rates difference of approximately £12,600.

These examples demonstrate why looking only at the percentage increase in rateable value can be misleading. A relatively modest percentage adjustment to a high-value property can still have a significant financial impact.

Why might a 2026 assessment warrant further investigation?

A higher rateable value does not automatically mean that an assessment is incorrect.

Rateable values are intended to reflect the rental value of a property at the relevant valuation date, using the valuation methods and evidence appropriate to the property and its use.

There can, however, be circumstances where the assessment deserves closer examination.

These can include:

• A substantial percentage increase in the 2026 rateable value
• A high underlying rateable value where even a relatively small correction could have a significant financial effect
• Differences between the property's current description and its actual use
• Changes to the property's layout or physical characteristics
• Physical condition that may affect its rental value
• Complex layouts or mixed uses
• Property types where valuation requires more detailed consideration of trading or rental evidence

This is particularly relevant to properties such as industrial and warehouse premises, leisure and hospitality businesses, and other commercial properties with more complex characteristics.

A percentage increase is not the whole story

It can be tempting to look at a property that has increased by, for example, 40% and conclude that the increase is either obviously excessive or obviously justified.

Neither conclusion necessarily follows.

The important question is whether the resulting rateable value can be supported by appropriate valuation evidence.

This is why an initial professional assessment can be useful. Rather than focusing solely on how much the bill has changed, the underlying valuation can be considered in the context of the property itself and relevant evidence.

What should businesses do?

Businesses affected by the 2026 revaluation do not necessarily need to assume that a higher bill is simply the cost of the new rating list.

Equally, businesses should not assume that an increase automatically means their property has been over-assessed.

The sensible first step is to understand the new assessment and consider whether there is a credible basis for further investigation.

This can include looking at:

1. The property's new 2026 rateable value
2. The size of the change from the previous assessment
3. The property's current use and physical characteristics
4. Relevant rental or valuation evidence
5. Whether anything about the property may not be properly reflected in the assessment

Where there appears to be a credible case, specialist advice can then establish whether a formal challenge is appropriate.

What we are seeing so far

Our early cases suggest that the impact of the 2026 revaluation is not uniform.

Some properties have experienced substantial increases in rateable value, while the potential scale of any correction depends on the individual property and the evidence available.

The largest potential savings are not necessarily found in properties with the largest percentage increase. Property value, location, use and the underlying assessment can all influence the financial impact.

As more properties are reviewed, Rating Matters will continue to monitor the patterns emerging from the 2026 rating list.

The figures above are based on early Rating Matters cases and initial assessments. They are indicative and do not represent guaranteed reductions or savings. Final outcomes depend on the evidence available and the outcome of the statutory valuation process. Estimated savings exclude the effect of reliefs and transitional arrangements.