Business rates valuation review: what could change before the 2029 revaluation?

The way commercial properties are valued for business rates is coming under renewed scrutiny.

Following the introduction of the 2026 rating list, the government has announced a review of how business rates valuations are carried out for pubs and hotels.

The review is significant because valuation methodology sits at the heart of the business rates system. How a property is assessed, what evidence is considered and how different types of property are compared can all influence the resulting rateable value.

For businesses dealing with the 2026 rating list today, however, the review is not a reason to simply wait for the next revaluation.

The current assessment still matters.

Why is the valuation process being reviewed?

Business rates are based on the rateable value assigned to a property.

In broad terms, the rateable value is intended to represent the property's annual rental value at the relevant valuation date, using the valuation approach appropriate to that type of property.

Different property types can require different valuation approaches and evidence.

Pubs, hotels and other trading properties can be particularly complex because their value may depend on a combination of the physical property, its location, its use and the economics associated with operating the business.

The government's decision to examine the valuation approach for these sectors reflects the wider question of whether the rating system continues to produce fair and appropriate assessments.

What does this mean for businesses?

For businesses, the most important point is that a government review does not automatically mean that an existing rateable value is wrong.

Nor does it mean that businesses should wait until the next revaluation before looking at their current assessment.

The 2026 rating list is already in force, and businesses are currently paying rates based on those assessments.

If there is evidence that a property's current rateable value may not accurately reflect its circumstances, that is a question worth considering now.

The 2026 revaluation still matters

The 2026 revaluation changed rateable values across the country.

For some businesses, the increase has been substantial.

At Rating Matters, our early screening work suggests an average 2026 rateable value uplift of approximately 41% across the early cases we have reviewed.

The potential scale of an adjustment can also be significant.

Two anonymised early examples include:

• East of England holiday or caravan site: approximately £47,500 indicative RV reduction, equivalent to an estimated annual rates difference of around £25,900
• London retail premises: approximately £23,000 indicative RV reduction, equivalent to an estimated annual rates difference of around £12,600

These are individual examples rather than representative averages for all businesses. They illustrate why the underlying assessment can be worth examining where the financial impact is significant.

For a fuller explanation of the early evidence, read our analysis of the 2026 revaluation.

What our first-year screening is expected to show

As Rating Matters develops its review programme during the first 12 months of the 2026 rating list, our current projection is that we will review 100+ commercial properties.

Our initial screening model currently suggests that approximately 54% may show evidence that their rateable value warrants further investigation.

Among those properties, our current projection is:

• Average potential rateable value reduction: approximately £24,000
• Median potential rateable value reduction: approximately £11,000
• Average potential annual business rates saving: approximately £9,500
• Median potential annual business rates saving: approximately £4,500

The difference between the average and median figures is important.

A small number of larger properties can have a substantial effect on the average. The median provides a better indication of what a more typical case might look like within the projected group.

Where could the opportunities be?

Our current screening model suggests that potential opportunities are not limited to one sector.

Of the properties currently expected to show potential for further investigation, the projected sector mix is:

• Retail: approximately 35%
• Offices: approximately 24%
• Industrial and warehouse: approximately 21%
• Hospitality and leisure: approximately 12%
• Healthcare and other uses: approximately 9%

The regional picture is similarly broad.

Our current projection is:

• London: approximately 26%
• South East: approximately 25%
• North West: approximately 15%
• East of England: approximately 12%
• Midlands: approximately 12%
• South West, Wales, Scotland and other areas: approximately 10%

These figures are projections based on our current screening model rather than completed annual results.

What can make an assessment worth investigating?

There is no single percentage increase that automatically means a property has been incorrectly assessed.

However, there are some circumstances where further investigation may be sensible.

A sharp increase in rateable value

A significant percentage increase can be a useful reason to look more closely at the assessment, particularly where the resulting financial impact is substantial.

A high-value property

Even a relatively small percentage correction to a high rateable value can produce a meaningful annual difference.

Changes to the property

The current use, layout, condition or physical characteristics of a property can all be relevant when considering its valuation.

Complex or mixed-use properties

Properties containing different uses or unusual physical characteristics can require more detailed consideration.

Relevant market evidence

Comparable rental evidence and other valuation evidence can provide an important basis for assessing whether a rateable value appears reasonable.

Should businesses wait for 2029?

The next revaluation may change the position again, and the outcome of the government's valuation review could influence how some properties are assessed in the future.

But waiting for 2029 may not be the best approach if there is already a credible question about a property's current assessment.

A business paying rates today is paying against the 2026 rating list.

The relevant question is therefore not simply:

"Will the valuation system change in the future?"

It is:

"Is my current 2026 assessment supported by the evidence?"

If there is a credible basis for challenging the assessment, that can be investigated now rather than assuming that a future revaluation will resolve the issue.

What should businesses do now?

Businesses should start by understanding their 2026 assessment and how it compares with the property itself and relevant evidence.

A professional initial review can help establish whether there appears to be a credible case for further investigation.

This does not mean that every increase should be challenged.

A well-founded challenge requires evidence, and the outcome will depend on the circumstances of the individual property and the statutory valuation process.

The wider lesson from the valuation review

The government's decision to examine valuation methodology highlights an important point for all ratepayers: the way a property is valued matters.

The 2026 revaluation is not simply a change in the amount businesses pay. Behind every business rates bill is an assessment of the property's rateable value.

Where that assessment is materially wrong, even a small correction can have a significant financial impact.

For businesses facing higher bills after the 2026 revaluation, understanding the underlying assessment is therefore an important first step.

The figures in this section are forward-looking estimates based on Rating Matters' early cases and initial screening model. They are not historical results or guaranteed outcomes. Individual properties vary considerably, and final reductions and savings depend on the evidence available and the outcome of the statutory valuation process. Estimated savings exclude the effect of reliefs and transitional arrangements.