While the 2026 business rates revaluation applies across all commercial property, its impact will not be felt evenly. Changes in rental values since 2021, combined with new multiplier structures in England and Wales, mean that some sectors are far more exposed than others.
Understanding how revaluation affects different types of property is essential. For owners and occupiers, sector context can help explain why liabilities may change — and where the greatest risks and opportunities are likely to sit.
Industrial And Logistics: Strong Growth, Higher Exposure
Industrial and logistics assets have experienced some of the strongest rental growth in recent years, driven by supply chain pressures, e-commerce demand and limited availability in key locations.
As a result, early draft valuations suggest that many industrial and logistics properties are likely to see increases in rateable value. In England, this exposure may be compounded where higher-value properties fall into upper multiplier bands, increasing overall liability.
For this sector, revaluation risk is less about surprise and more about scale. Understanding whether draft values accurately reflect the property’s size, specification and use will be critical in managing future costs.
Retail: Mixed Outcomes and Greater Differentiation
Retail continues to experience uneven performance across locations and formats. Prime, experience-led destinations have proven more resilient, while secondary locations have often struggled.
This divergence is reflected in draft valuations, with many retail properties seeing smaller increases, stability or even reductions compared to other sectors. In Wales, the introduction of a lower retail multiplier for properties below £51,000 is expected to provide targeted relief for smaller retailers.
However, classification remains key. Misalignment between use and sector categorisation can materially affect which multiplier applies, making early review particularly important.
Offices: Location And Quality Matter More Than Ever
The office sector has seen significant shifts in demand, with quality, sustainability and location playing a greater role in rental performance.
Prime, well-specified offices in strong markets may see increases in rateable value, while older or less adaptable stock may experience flatter outcomes. This variation means office occupiers should avoid assumptions based on sector averages alone.
Careful review of draft valuations is essential to ensure that assessments reflect current market conditions rather than historic expectations.
Hospitality And Leisure: Complexity And Sensitivity
Hospitality and leisure assets often present more complex rating challenges due to their operational nature and varied trading performance.
Hotels, restaurants and leisure venues may see changes in rateable value that do not always align neatly with profitability. In England, Retail, Hospitality and Leisure (RHL) classification affects which multiplier applies, making correct categorisation critical.
In Wales, although hospitality does not benefit from a distinct multiplier category, transitional relief and existing permanent relief schemes will play an important role in managing increases for eligible businesses.
Leisure And Specialist Uses
Certain leisure assets, such as golf clubs, have already seen notable shifts in rateable value in draft lists. Increased participation, changing business models and reassessment of land and facilities have contributed to higher valuations in some cases.
These assets often rely on bespoke valuation approaches, meaning small changes in assumptions can have a disproportionate impact on liability. For specialist properties, sector understanding and evidence-based review are particularly important to ensuring assessments remain fair and defensible.
Why Sector Context Matters Now
Revaluation is not just a numerical exercise; it reflects how markets have changed. Two properties with similar rateable values may face very different bills depending on sector classification, location and multiplier structure.
Understanding sector trends helps explain why liabilities may change, but it should not replace property-specific review. Draft valuations provide an opportunity to test assumptions before the new list takes effect.
From Sector Insight to Action
As April 2026 approaches, sector awareness should be the starting point, not the conclusion. Early identification of risk allows time to review details, prepare evidence and seek advice where concerns arise.
In a revaluation cycle marked by divergence rather than uniform change, informed preparation is the most effective way to manage exposure.
