Retailers in Bristol and five other UK cities will see their average rateable values decrease in the 2017 business rates review, according to analysis carried out by leading property advisers, CBRE.
Bristol will see values decrease by 9%, with Cardiff and Southampton also benefiting from a decrease of 17% and 20% respectively once the review is fully implemented, while conversely, London and Manchester will see rises of 15% upwards. The new figures were published last week, marking the most significant change to business rates since 2010.
However, when it comes to industrial properties, Bristol is expected to see a small increase in average values of 2%, while Cardiff is among the worst affected by the review, with average values expected to rise by 11%. Across the UK, industrial properties have been handed mixed fortunes, with Manchester set to benefit from an average reduction in rateable values of 14%. For UK offices, five out of ten cities will see a drop in values, while Reading, which has seen notable office development in the last six years, expects an average increase of 40%.
In Central London, West End retailers will be among the hardest hit from 2017 onwards, with those around Mayfair seeing the steepest hikes. However, not all of Central London retailers will be negatively affected by the rates review, with businesses in High Street Kensington welcoming a 25% drop in their average rateable values and Victoria Street seeing an average rise of 19%.
Rohan Short, Head of Rating at the Bristol office of CBRE, said: “The new Rateable Value for every commercial property in England and Wales will provide occupiers with a range of financial challenges and I strongly recommend advice is taken on the implications of the Revaluation. A scheme of ‘Transitional Relief’ is proposed in England, which could allow rates bills to increase by up to 45% for large properties. However, those expecting substantially lower demands may have to wait several years for this to become a reality.
“While there is the option to appeal, the revised process for the new list appears protracted, with proposed legislation suggesting that values could remain artificially high if they are within the bounds of reasonable professional judgement. Whether rates fall or increase, it’s still vital that businesses are aware of the potential impact on their bottom line and that they have sufficient funds in place to ensure long-term survival.”