Harrods sees a 15 million pound drop in business rates assessment as retail undergoes dramatic revaluation

6th December 2022

More than half a million retail properties across England and Wales have now been revalued with new rateable values, which will be used to calculate business rates liabilities from 1 April 20023 to 31 March 2026, having been published showing a fall of 10 per ccent overall for the sector.

The Valuation Office Agency say 508,300 shops will see their rateable values fall by 10 per cent overall from £16.3bn to £14.6bn from April next year. 

Despite rateable values falling across all regions for the embattled retail sector, experts say the reductions don’t go far enough. The revaluation of all 2.1 million non-domestic properties has been based upon an estimate of open market rents as of 1st April 2021. The last revaluation came into effect in England and Wales on 1st April 2017 and was based upon an estimate of rents being paid on 1st April 2015. The 2023 revaluation will reflect the changes in rents being paid during the intervening 6-year period.

Iconic London department stores Harrods will see its rateable value plummet 45 per cent from £32.73 million to £18 million next April whilst Selfridges will benefit from similar reductions with its rateable value being slashed from £30.5 million to £16.82 million. Large shops, those between 750m2 to 1850m2 in size, will see an overall fall of 19.3 per cent.

Hypermarkets and superstores, generally those operated by the Big 4 supermarkets, will see their rateable values fall by 14.9 per cent. The biggest fall in rateable values for the retail sector was 14.6 per cent in Yorkshire & Humber and 13.9 per cent in the North East.

But convenience stores will see their rateable values increase overall by 12.7 per cent, large food stores the smaller format supermarkets will see their valuations increase by 8. 4% with hairdressing and beauty salons facing a 6.3% increase Altus Group added.

More than 400,000 small shops, the vast majority of all retail sector properties, will see their rateable values fall by 8.4 per cent with rateable values across the entire retail sector falling by 10 per cent overall as a result of the revaluation which comes into effect next April. 

 

Taken from: Harrods sees £15m drop in business rates assessment as retail undergoes dramatic revaluation (cityam.com)

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