Revaluation 2017: who will the winners and losers be?
The next revaluation of business rates in the UK will come into effect on 1 April 2017 with rateable values based on rental levels at 1 April 2015.
To enable businesses to prepare for the impact of the 2017 revaluation, BNP Paribas Real Estate has studied rental deals across the country in the months leading up to April 2015 and compared these with current rateable values that are based on rental levels at 1 April 2008 – the rental market has endured a roller coaster ride subsequently.
From this research we have prepared our ‘winners and losers’ map illustrating the likely percentage changes in rateable value.
Our prediction is that the country’s total rateable value will remain unchanged, although it will be redistributed to reflect localised changes in rental movements. London is expected to bear the brunt of the increases – Lux retail and landmark tower blocks in particular – but in many parts of the country, values have not recovered from recessionary lows.
We also predict that the UBR (uniform business rate) multiplier will remain close to 50p, meaning annual rates bills will equate to approximately half of a property’s current rental value – the highest ever at the start of a revaluation!
As the time chart demonstrates, there had been little political interference with business rates since the current system came into effect in 1990. However, the amendments to empty rate relief in 2007 triggered a change with many cases subsequently being put before the courts.
Shortly before the March 2015 budget the government announced a “root and branch” review of the business rates system and their findings are due next year. Our view is that the government will not take any radical action that would jeopardise a revenue stream of £26bn with a collection rate in excess of 98%, though they may decide to shorten the revaluation cycle to three years and possibly abolish transitional relief.
Head of Business Rates at BNP Paribas Real Estate, Jim Ruthven said: “We have had an unusually long and very tempestuous 2010 rating list. While our forecasts give an indication of what to expect generally, each property must be looked at on an individual basis and using a rating expert is essential to ensure rates are kept to a minimum”.
We strongly advise using a rating expert to appeal on your rates bills that can use evidence and successful track record to argue on your behalf and achieve significant savings, which is even more essential this time round given we expect a huge UBR of 50p in the £.
Please complete the form to the right to get in touch with our rating experts to discuss how Revaluation 2017 might affect you.