Companies occupying prime workplace property in Central London will see enterprise charges enhance by 9% following the 2026 revaluation, in line with evaluation from Colliers.
This represents a rise of £432 million on high of present liabilities, whereas 22 London areas 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 because the final revaluation.
Alex White, head of the London enterprise charges workforce at Colliers, mentioned: “General office-based companies in London want to organize for some hefty charges payments subsequent 12 months.
“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 12 months, our assumptions are that just about half of the London areas we analysed (13 out of 27) may have enterprise charges payments primarily based at over £40 per sq. foot after the Revaluation.
“On high of lease and repair cost will increase, this can make the overall occupancy prices of property more and more costly – and eyewatering so, in Mayfair and St James’s.
“It will likely be fascinating to see the influence this has on companies selecting the place to find their headquarters and hubs. With enterprise charges in Farringdon probably dearer than Metropolis, will this space nonetheless appeal to the tech start-ups and creatives because it has finished beforehand? Or will Farringdon be priced out and morph into the Metropolis as an entire?”
Enterprise charges legal responsibility (payments) is predicated on the rateable worth (RV) of a property multiplied by the “multiplier” or Uniform Enterprise Fee introduced by the federal government every year.
Colliers has estimated the RVs of properties within the new listing 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 listing) and mixing this with the anticipated new greater 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 12 months, in line 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 because of steep lease rises in these areas on the sting of the Metropolis, catching up with the Metropolis core.
These areas have seen an inflow of artistic and tech companies lately, along with flex house workplace operators, as they’ve change into 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, artistic 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 enhance to £31.61 psf in 2026/7- a 25% rise on this 12 months.
Waterloo is likely one of the busiest transport hubs from the south and has lately seen extra improvement, rising the world’s attraction.
In March a 10-year Masterplan for the station was put ahead which has little doubt 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 shall be paying the very 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 12 months.
In contrast charges in The Metropolis of London core seem like much less dramatic. The Metropolis core remains 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. Most of the high-rise buildings within the Metropolis are additionally absolutely or practically absolutely let and Grade A emptiness charges have diminished, pushing up rents
London Workplace Places: 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 may be 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 nonetheless 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 12 months.
London Workplace Places: 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 might be because of a variety of authorities departments shifting out of London, more and more the supply of inventory.
Marsh Wall is the one space in London the place enterprise charges payments will nonetheless be beneath £20 psf at £17.56, not too far behind Canary Wharf at £21.37, which seems good worth, significantly if companies want bigger floorplates.
John Webber, head of enterprise charges at Colliers, added: “The federal government’s choice to penalise all industrial 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 might be even higher- even as much as the utmost of 10p within the £.
“Ought to this be the case, the enterprise charges rises we are going to see shall be even greater 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 financial system.”
