Business rates hike could cost London office occupiers £432 million more from 2026

Office-based businesses across Central London could face a steep increase in business rates from April 2026, according to new research by property consultancy Colliers. The analysis suggests that occupiers of prime office space may collectively see bills rise by £432 million, bringing total business rates liabilities to £5.23 billion—a 9 percent increase on current levels. Colliers examined 27 Central London areas, focusing on Grade A office spaces over 10,000 sq ft, to assess the expected financial impact of the 2026 Rating Revaluation. The forecast draws on changes in rental values between April 2021 and April 2024 and anticipates a higher business rates multiplier for properties with rateable values (RVs) above £500,000.

The biggest increases are expected in areas that have seen strong rental growth. Farringdon tops the list with a 38 percent jump in average rates bills, attributed to rising demand and improved accessibility via the Elizabeth Line. Waterloo (25 percent), Mayfair (23 percent), and Holborn (20 percent) are also expected to see significant increases.

In contrast, only four districts—Chelsea, Bloomsbury, Westminster and Marylebone—are forecast to experience rate reductions, though actual savings may be marginal. Canary Wharf remains the only location expected to see no change, as rents there have remained largely flat.

John Webber, Head of Business Rates at Colliers, warned that the government’s higher multiplier for high-value properties is effectively penalising many London offices. “Our estimates are conservative, but if the multiplier increases further, as some predict, the financial impact on London businesses could be even greater,” he said.

Colliers has published an interactive map to help businesses assess potential changes in their area: https://www.colliers.com/en-gb/services/business-rates-rating/london-offices-2026-revaluation-impact

Commenting on the Colliers forecasts, Alex White, Head of the London Business Rates team at Colliers said, “Overall office-based businesses in London need to prepare for some hefty rates bills next year. Although of course, we won’t know the actual RV changes nor the new multipliers (and hence the higher multiplier) until the Autumn this year, our assumptions are that nearly half of the London areas we analysed (13 out of 27) will have business rates bills based at over £40 per square foot after the Revaluation. On top of rent and service charge increases, this will make the total occupancy costs of property increasingly expensive – and eyewatering so, in Mayfair and St James’s.