New research has highlighted the potential that the 2017 Rating Revaluation could significantly increase property costs for London office occupiers.
The 2017 Rating List (to be introduced from 1st April 2017) will be based upon office rental values in Central London on 1st April 2015.
The current 2010 Rating List was based upon the levels of rent in April 2008. The Government has (by accident) chosen 2015 another period with sharply rising rents in the Central London office market on which to base the new 2017 assessments.
As a result, the across the board rental increases recently witnessed in the City, Mid-town, West End and Docklands are likely to result in widespread uplifts in rateable values (particularly for top quality Grade A buildings) from April 2017 onwards.
Even if a “transitional relief” or phasing system is introduced from that date, if past schemes are to be followed it would still give a minimum of 12.5% annual increases for Central London office occupiers from April 2017 onwards.
The idiosyncrasies of the rating system will draw up anomalies and inconsistencies which inevitably merit appeals on behalf of certain occupiers but by no means all.
Newton Perkins renowned expertise in the field can advise on the benefits and advisability of appeals either now or in the future.
If you require further information please contact Michael Moon MRICS – Head of Rating.