At Curzon Land, we stay ahead of the curve so you can make informed decisions when it comes to commercial real estate investment in London. One of the most significant updates investors and occupiers must now prepare for is the sweeping reform to business rates, which has recently received royal assent. These changes are set to reshape the landscape for Grade A and prime office occupiers across the capital—particularly those invested in the City of London.
Commercial Real Estate Investment in London – What’s Changing in Business Rates?
From April 2026, the way business rates are calculated in the UK will undergo a major overhaul. This isn’t just another administrative update—Savills forecasts a dramatic shift that will directly impact business rates liability for high-value commercial properties.
While the government has yet to confirm whether these changes will remain fiscally neutral, the intent is clear: redistribute the burden of business rates to revitalise the high street, retail, hospitality, and leisure sectors. For investors and landlords in the commercial office space, this means increased scrutiny and potentially greater financial liabilities.
New Tiered Multipliers and Rising Liabilities
Historically, business rates were calculated using a uniform multiplier. In the 1990s, this stood at 34.8p for every £1 of Rateable Value (RV). However, recent years have seen a gradual shift towards a tiered multiplier system—and now, further complexity is being introduced.
Here’s what’s on the horizon:
Re-basing the standard multiplier: Early predictions suggest a drop from 55.5p to around 50p.
Supplement multiplier for high-value properties: A new ‘super supplement’ could add up to 10p to the standard rate for properties with an RV of £500,000 or more. That’s potentially a 20% jump in rates bills.
Additional local supplements: Including the Crossrail supplement (currently 2p) and City of London premium (2.2p), pushing the multiplier for some properties beyond 64.2p.
In real terms, prime office occupiers in the City of London currently pay 59.7p per £1 of their 2023 Rateable Value—the highest rate on record. From 2026, these liabilities could rise dramatically.
2026 Revaluation: A Perfect Storm for London Office Investors
Adding to the complexity is the scheduled 2026 revaluation of Rateable Values, effective from 1st April 2026. These will be based on rental data from April 2024, a period marked by strong recovery in office occupancy and rising rents in key commercial zones.
Forecasts indicate that business rates for prime City offices—up to and including the 14th floor of major towers—could increase from around £36.05 per sq ft in 2025 to approximately £46 per sq ft in 2026. That’s an estimated 28% year-on-year increase in liability.
What This Means for Commercial Real Estate Investment in London
If you’re considering or currently managing commercial real estate investment in London, particularly within the prime office market, this reform is a critical consideration.
The 2026 Rating List will be published in draft form in late 2025, confirming the new Rateable Values. However, the final multipliers won’t be announced until the Government’s Autumn Budget—expected on 30th October 2025.
It’s essential for investors, landlords, and occupiers alike to:
- Review their current Rateable Values under the 2023 Rating List (appeals close 31st March 2026).
- Prepare financial forecasts for increased business rates liabilities.
- Seek expert valuation advice to mitigate risk and ensure compliance.
Curzon Land’s Perspective
At Curzon Land, we believe that well-informed decisions underpin strong property investment strategies. These changes to business rates are not just a challenge—they are a chance to futureproof your portfolio. By staying proactive and understanding the full scope of the reforms, you can turn potential risks into long-term advantages.
Whether you’re looking to acquire prime office space or need expert insight to navigate upcoming liabilities, our team is here to support you with tailored guidance on commercial real estate investment in London.
