Companies occupying prime workplace property in Central London will see enterprise charges improve by 9% following the 2026 revaluation, in keeping with evaluation from Colliers.
This represents a rise of £432 million on prime of present liabilities, whereas 22 London places out of 26 are anticipated to see rising charges.
Charges will stay static in just one location: Canary Wharf, the place rents have solely marginally modified for the reason that final revaluation.
Alex White, head of the London enterprise charges group at Colliers, stated: “Total office-based companies in London want to organize for some hefty charges payments subsequent yr.
“Though after all, we received’t know the precise RV adjustments nor the brand new multipliers (and therefore the upper multiplier) till the Autumn this yr, our assumptions are that just about half of the London areas we analysed (13 out of 27) could have enterprise charges payments primarily based at over £40 per sq. foot after the Revaluation.
“On prime of hire and repair cost will increase, this may make the full occupancy prices of property more and more costly – and eyewatering so, in Mayfair and St James’s.
“Will probably be fascinating to see the impression this has on companies selecting the place to find their headquarters and hubs. With enterprise charges in Farringdon probably costlier than Metropolis, will this space nonetheless appeal to the tech start-ups and creatives because it has completed beforehand? Or will Farringdon be priced out and morph into the Metropolis as a complete?”
Enterprise charges legal responsibility (payments) is predicated on the rateable worth (RV) of a property multiplied by the “multiplier” or Uniform Enterprise Charge introduced by the federal government every year.
Colliers has estimated the RVs of properties within the new record by wanting on the change in rental ranges between 1 April 2021 and 1 April 2024, (the valuation dates of the present and new ranking record) and mixing this with the anticipated new larger multiplier, which the federal government proposes to use to all properties with a RV over £500,000.
Workplace occupiers in Farringdon, will see the steepest rises of their charges payments subsequent yr, in keeping with Colliers the place workplace common charges legal responsibility (payments) are forecast to extend from £29.38 psf in 2025/26 to £40.64 psf in 2026/7- a large rise of 38%.
Close by Shoreditch has additionally seen a considerable rise of 16%. Colliers says these rises are attributable to steep hire rises in these places on the sting of the Metropolis, catching up with the Metropolis core.
These areas have seen an inflow of inventive and tech companies lately, along with flex house workplace operators, as they’ve grow to be extra interesting and accessible.
Farringdon has additionally benefited from the opening of the Elizabeth Line making it extra accessible to commuters to each the east and west of London.
Close by Holborn’s strategic place has additionally elevated in reputation and has seen rental progress pushing anticipated charges payments rises over 20%.
Areas on this space are well-suited to tech, inventive and media companies, and are near the distinguished West Finish and Metropolis primarily based companies they serve.
Different areas anticipated to be seeing hefty rises in charges legal responsibility are Waterloo, the place Colliers anticipates enterprise charges will improve to £31.61 psf in 2026/7- a 25% rise on this yr.
Waterloo is likely one of the busiest transport hubs from the south and has lately seen extra growth, rising the realm’s attraction.
In March a 10-year Masterplan for the station was put ahead which has little question has been key in driving curiosity and therefore rental ranges.
The opposite space seeing a big rise is Mayfair the place charges payments are estimated to rise 23% from £67.31 psf in 2025/6 to an eyewatering £82.78 psf in 2026/7.
Workplace occupiers within the West Finish might be paying the best charges payments in London. Not far behind Mayfair is St James’ the place workplace occupiers will possible even be paying excessive charges bills- of £72.74 psf subsequent yr.
In contrast charges in The Metropolis of London core look like much less dramatic. The Metropolis core continues to be anticipated to see a 9% rise of enterprise charges rise from £35.93 to £39.02 psf, reflecting regular restoration of the Metropolis after Covid. Lots of the high-rise buildings within the Metropolis are additionally totally or almost totally let and Grade A emptiness charges have decreased, pushing up rents
London Workplace Areas: Forecasted Greatest Losers from the 2026 Score Revaluation
| Location | Common Charges Legal responsibility 2025/6 £ psf | Anticipated Common Charges Legal responsibility 2026/7 £ psf | % change in Charges Legal responsibility (Payments) |
| Farringdon | 29.38 | 40.64 | +38% |
| Waterloo | 25.37 | 31.61 | +25% |
| Mayfair | 67.31 | 82.78 | +23% |
| Holborn | 32.05 | 38.38 | +20% |
| East South Financial institution | 30.72 | 36.62 | +19% |
| Marsh Wall | 14.96 | 17.56 | +17% |
| Paddington | 34.72 | 40.13 | +16% |
| Shoreditch | 28.04 | 32.61 | +16% |
In the meantime there’s solely higher information for workplace occupiers in 4 London districts the place enterprise charges are anticipated to lower: Chelsea, Bloomsbury, Westminster and Marylebone. Charges payments are nevertheless nonetheless excessive in most of those areas with three out of the 4 “winners” nonetheless anticipated to be paying payments of over £40 psf. subsequent yr.
London Workplace Areas: Forecast Greatest Winners from the 2026 Score Revaluation
| Location | Common Charges Legal responsibility 2025/6 £ psf | Common Charges Legal responsibility 2026/7 £ psf | % change |
| Chelsea | 46.74 | 42.64 | -9% |
| Bloomsbury | 40.06 | 38.13 | -5% |
| Westminster | 41.93 | 40.13 | -4% |
| Marylebone | 46.74 | 45.65 | -2% |
Colliers believes the discount in estimated payments for the Westminster submarket could possibly be attributable to plenty of authorities departments shifting out of London, more and more the provision of inventory.
Marsh Wall is the one space in London the place enterprise charges payments will nonetheless be below £20 psf at £17.56, not too far behind Canary Wharf at £21.37, which seems good worth, notably if companies want bigger floorplates.
John Webber, head of enterprise charges at Colliers, added: “The federal government’s resolution to penalise all business property with a RV over £500,000 by the next multiplier to pay for its “save the excessive avenue coverage” has successfully hit a lot of the high quality workplace property inventory in London.
“ Our estimates have been conservative, primarily based on the next multiplier of +7p to the usual multiplier, however different commentators assume this could possibly be even higher- even as much as the utmost of 10p within the £.
“Ought to this be the case, the enterprise charges rises we’ll see might be even larger than these we have now estimated above.
“One other case of the federal government, some would say unwisely, hitting companies for six – damaging the lifeblood of our economic system.”
