The 2026 Revaluation: What Smart Occupiers Need to Know Now

London's office market has never stood still, but 2026 marks a pivotal moment; the next business rates revaluation. A clearer picture is emerging of how the capital's commercial landscape has evolved, and where opportunities lie for those looking to reduce their liability.

The data reveals more than just tax implications; it maps London's transformation over the past five years, highlighting districts that have risen, areas that have plateaued, and the strategic moves smart occupiers should be making now.

The Standout Movers

Farringdon leads the charge with a staggering 38% increase. This isn't just inflation; it's recognition of a district that has transformed from fringe to a connectivity powerhouse. The Elizabeth Line effect is real, and the valuers have noticed.

Mayfair maintains its crown as London's most expensive office real estate, a 23% leap that reflects its premium positioning. When rates are already high, even modest growth means serious money.

Holborn delivers a 20% jump, proving that the increase in office quality and transport links creates compelling value propositions that translate directly to rates liability.

But the dramatic increases aren't confined to Central London's traditional powerhouses. Waterloo shows a significant 25% rise, reflecting its growing appeal as a South London hub with excellent connectivity. Paddington faces a 16% increase, demonstrating how Crossrail's western terminus has elevated the area's commercial status.

Vauxhall/Battersea sees a 15% jump, confirming the transformation of this riverside district into a legitimate business destination. Meanwhile, Southbank climbs 14%, and Knightsbridge rises 11%, showing that premium residential areas are increasingly attractive for corporate occupiers.

The Strategic Opportunities

Whilst you can panic, there are opportunities. Bloomsbury presents a rare 5% decrease, making it appealing for occupiers seeking Central London presence without premium pricing. London Bridge also bucked the trend with an 11% reduction, a reflection of market recalibration rather than declining desirability.

Canary Wharf holds flat, confirming its position as London's value-for-money financial district alternative. Smart CFOs are already running the numbers.

Several other areas show modest, manageable increases. Euston sees just a 2% rise, while Fitzrovia increases by only 2%. St James's climbs 3%, and Kensington shows a 4% increase.

The Power of Precision

Sometimes the biggest savings come from the smallest moves. Take East London: Shoreditch sees rates climbing 16%, yet just south in East City/Aldgate, occupiers face only a modest 5% increase. For businesses seeking that creative edge without the premium price tag, a strategic postcode shift could deliver substantial savings while maintaining the vibrant East London appeal.

Similarly, while North of Oxford Street increases 6%, Soho sees a smaller 5% rise. Victoria faces a 6% increase, making it an attractive alternative to pricier West End locations.

The City presents interesting dynamics too. The City Core sees a 9% increase, while King's Cross also climbs 9%. Covent Garden/Strand increases 5%, maintaining its appeal as a creative quarter with West End cachet.

The Emerging Districts

London's eastern expansion continues to offer value. Marsh Wall in Canary Wharf's extended area shows a 17% increase, but remains among London's most affordable prime office locations. Stratford holds steady with no change, representing exceptional value for businesses seeking excellent transport links and modern facilities.

Even Marylebone, traditionally expensive, shows a slight decrease, creating opportunities in one of London's most prestigious business addresses.

The Bottom Line

Behind every percentage change lies a story of London's evolution, new transport links, shifting business clusters, and changing occupier preferences. The savvy businesses already building these insights into their property strategies will find themselves ahead of the curve when 2026 arrives. Understanding these patterns isn't just about managing costs; it's about positioning for growth in a city that never stops reinventing itself.

Are you ready to navigate the 2026 revaluation? At Kontor, we don't just analyse the data, we use it to secure strategic advantages for our clients. We specialise in helping businesses optimise their rates liability across London's commercial property market. From identifying cost-saving relocations to challenging assessments and maximising reliefs, we turn complex rate regulations into bottom-line benefits for our clients.

So, whether you're planning a move, reviewing your current rates liability, or exploring opportunities across London's evolving landscape, we are here to guide your next decision. Get in touch with one of our expert team members to discuss how we can help you.

Complete London Business Rates Forecast 2026/27

West End

Central London

City of London

East London

West London

South West London

South London

Canary Wharf & East

Data represents prime office space over 10,000 sq ft. Projections based on our ratings partner's forecasts and in-house analysis of estimated business rates multipliers for 2026/27 liability.

By Nenagh Acock Jones, Marketing Manager