"New analysis by leading property data provider, Search Acumen, shows that 16,780 properties across England above the rateable value of £500,000 will be affected by an increase to business rates if Chancellor Rachel Reeves goes through with planned reforms, having a material impact on occupiers and investors. The analysis indicates that business rates increasing will disproportionally impact London, with almost two-fifths (37%) of properties liable based in the Capital alone. The 6,100 premises have a rateable value of £9bn nearly half of the overall collective value of rateable properties above the £500,000 threshold."
"Furthermore, 70% of all of England's office spaces that sit in the top bands of business rates are in London (3,220 out of 4,590), higher than any other region. Search Acumen points to the risk of cash flow pressure, reduced investment and higher vacancy rates during a time of persistent inflation and low-growth economy. Overall, the number of properties in England that are subject to current business rates sits at 2 million, with a total rateable value of £71 billion. The proportion of properties liable for higher tax equates to a third of the overall rateable value at £22.6 bn (31.9%) despite representing less than 1% of all properties (16,780)."
Planned business rates reforms would affect 16,780 properties across England with rateable value above £500,000, creating a material impact on occupiers and investors. Almost two-fifths (37%) of liable properties are in London, where 6,100 premises have a combined rateable value of £9bn. Seventy percent of England's office spaces in top rate bands are in London (3,220 out of 4,590). The total number of properties subject to current business rates is 2 million, with a combined rateable value of £71 billion. Properties above £500,000 account for £22.6bn (31.9%) of total value while representing less than 1% of properties. Business rates raised £27bn in 2023/24, and UK property tax levels exceed the OECD average. The Chancellor announced lower multipliers for Retail, Hospitality and Leisure properties with 2026 rateable value below £500,000; a funding mechanism was indicated but not detailed.
Read at London Business News | Londonlovesbusiness.com
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