Firms to expect rates surge in major city business districts - Colliers
Businesses occupying prime Grade A office property in Birmingham’s central business district will see significant rises in their business rates bills next April, following the 2026 Revaluation.
That’s according to the Business Rates team at Colliers, who estimate that office occupiers in the best space in Birmingham could see increases of up to 26 per cent in their bills next year.
And firms occupying similar space in Manchester can and Leeds can expect increases of up to 25 per cent and 44 per cent respectively.
Colliers has analysed rental values in the prime Grade A office space in the three cities’ CBDs as at the Valuation date of 1 April, 2024.
These reflect that best in class space remained in high demand with short supply driving rental growth.
As a result, Colliers predict rateable values will have increased since the last list, with Birmingham RVs increasing 45 per cent, Leeds 67 per cent and Manchester 44 per cent over the three-year period.
John Webber (pictured), head of Business Rates at Colliers said: “Of course we are talking about the best office space in these regional centres- in the CBDs- and there will be poorer stock elsewhere not seeing such a high growth in rental values and therefore in liability.
“Similarly, even with these hikes, the rents and rates bills in these business areas will still be significantly more attractive than in London.
“Our recent London office research estimated that 13 out of 27 London business areas will have business rates bills based at over £40 per square foot after the Revaluation. These regional centres are generally about half of that.
“Even so, in the local regional market these rises will be significant- and all point to the increasing burden that business rates bring onto businesses, at a time when they are facing other rising costs elsewhere.
“This may curb further investment and expansion. Finance directors and CEOs of businesses in prime regional office space will need to be budgeting and planning for increased office occupancy costs within their property strategy, and using really robust local market expertise to challenge any inappropriate increases published in the Draft List later this year.”
