Occupiers of prime offices in Mayfair, Kensington and Fitzrovia face the largest increases in business rate liabilities from April 2026, the government’s draft rating list for the 2026 revaluation has revealed.

Business rate changes vary significantly across central London’s office market

Mayfair, Kensington and Fitzrovia are set for average increases in rates bills of 33%, 29% and 24%, respectively following the new revaluation, with Paddington close behind with a 20% rise, according to analysis from Colliers’ business rate experts covering 28 London office submarkets.

The analysis shows that most businesses that occupy grade A central London offices will see an increase in business rates from the 2023 valuations, while the rateable value of offices in central London as a whole will rise from £8.5bn to £9.7bn.

However, the impact will vary widely across different London boroughs: in Canary Wharf, average liabilities will fall by 6%, liabilities in Shoreditch and Aldgate will fall 4%, while in London Bridge they will fall 3%.

Every other central London submarket is set for average rates increase of less than 10%.

Offices have been named as one of the biggest losers of a business rates double whammy in the Budget last week, alongside hotels, pubs, and industrial and logistics assets, while the retail sector has the broadest mix of “winners and losers”.

Colliers said that in some submarkets such as Farringdon and Shoreditch, a much more significant rate bill increase had been expected based on antecedent valuation date rental evidence.

Explaining the inconsistent picture, Alex White, head of business rates in London for Colliers said: “The general theme based on the draft list figures that were released last week is one of winners and losers.

“Although we have seen the majority of rateable values on central London offices increase, the rebasing of the multiplier, even for those with valuations over £500,000, has seen those with the smallest rateable value increases actually better off from 1st April 2026.

“On the flip side, there are some markets where rateable values have increased materially and even with the lowering of the multiplier, rates liability will see sizable double digit percentage increases.”

Businesses in prime Mayfair spaces will pay the highest rates bills in central London at £89.52/sq ft, followed by St James’s, at £69.90/sq ft.

Properties in 12 of the 28 boroughs will be paying rate bills of more than £40/sq ft.

The lowest rates liability is in Canary Wharf, at £16.86/sq ft, and Marsh Wall, at £12.77/sq ft.