1 April 2019 marked a significant date for occupiers and owners of commercial property in the UK: it was the valuation date, or the snapshot in time, upon which rateable values will be based for the three-year period between April 2021 and March 2024.

The 2021 Rating Revaluation will re-set all rateable values across England and Wales (Scotland is due to have a revaluation in 2022) based on open market rental levels on or around 1 April 2019.

The period during which we’ve been using the current 2017 Rating List is the shortest one we have ever had, but from 2021 onwards revaluations will take place every three years. This shorter gap between revaluations should smooth out any substantial peaks or troughs in rates liabilities as reaction to market changes should be recognised more quickly. 

While some may argue for annual revaluations, this is very unlikely to be achievable in the foreseeable future without a substantial investment in the resources and systems employed by the Valuation Office Agency (VOA).

In terms of the outlook for rateable values from 2021, initial research by Savills suggests that the retail sector outside central London will see decreasing rates bills following the revaluation through both lower rateable values and an expected reduction in the annual multiplier, or rate poundage. 

Conversely, the popularity of the logistics market, as well as certain office locations across the UK, particularly in central London, the East and the South East, is likely to lead to higher rates bills for occupiers in these sectors and areas.

While there will always be winners and losers in every rating revaluation, performing them on a more regular basis is good news for the property industry as it will ensure valuations are based on more up-to-date market conditions than has previously been the case.

The two-year delay between the valuation date (1 April 2019) and the start of the new rating list (1 April 2021) is not ideal, but until valuations become more automated, or self-assessment is introduced, it’s simply not feasible for the VOA to produce a revaluation of over two million properties in England and Wales alone in such a short timescale.

What is particularly interesting in terms of this year’s valuation date of 1 April is the amount of uncertainty in the political arena. Delays to Brexit, the prospect of leadership or complete government changes and the day-to-day pressures of so many business, particularly in the retail sector, may make it very difficult for the VOA to produce accurate rateable values. 

We can only hope that they will be prepared to receive and respond to appeals once the new Rating List is published.

Further information

Contact Savills Consultancy Business Rates