Rateable value: what it is and how to reduce it
Understanding your property's rateable value is essential for managing business costs effectively. Whether you're wondering how to find the rateable value of your property, what the Valuation Office Agency (VOA) does, or how to reduce business property rateable value through the challenge process, this guide provides clear answers. We'll explain what rateable value means, how the business rates multiplier works, and the steps you can take to ensure you're not overpaying on your property taxes.
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What is rateable value?
What is rateable value and why is it important?
Rateable value is the estimated annual rent your property could earn on the open market at the Antecedent Valuation Date (AVD), set by the Valuation Office Agency (VOA).
The AVD is the specific date in the past that the government uses to value all business properties fairly. This effectively takes a snapshot of rental prices on that date and uses those prices to calculate business rates. This ensures all properties are valued using the same market conditions.
How to find the rateable value of your property
Need to know the rateable value of your property? Here's how:
There are three ways you can find the rateable value of your property:
- Check your business rates bill — it lists the property rateable value.
- Check online - use the VOA website for properties in England and Wales to search by property address. For Scotland, visit the Scottish Assessors' Portal to search by address or postcode.
- Speak to the council - contact the local council or Valuation Office Agency for official confirmation.
Understanding the rateable value multiplier
What is the rateable value multiplier and what changes will be in place for this year?
Uniform Business Rates (UBR) multipliers are set by the government each year and are used to determine how much you pay in business rates. To calculate your annual business rates bill, you multiply your property's rateable value by the appropriate multiplier for your property.
Current system (2023-2026)
England currently uses two multipliers based on your property's rateable value: a small business multiplier for properties valued under £51,000, and a standard multiplier for properties worth £51,000 or more.
New system from April 2026
From April 2026, the government introduced five new multipliers that consider both your property's rateable value and your type of business:
- Small Retail, Hospitality and Leisure (RHL) - for shops, restaurants, hotels and leisure businesses valued under £51,000
- Small non-RHL - for other small businesses (offices, warehouses, etc.) valued under £51,000
- Standard RHL - for medium-sized retail, hospitality and leisure properties valued between £51,000-£499,999
- Standard non-RHL - for other medium-sized businesses valued between £51,000-£499,999
- Large property multiplier - for all high-value properties worth £500,000 and above
This change is designed to support retail, hospitality and leisure businesses by enabling them to benefit from lower multipliers compared to other business types.
Why is my property's rateable value so high?
Common reasons why rateable values come in high
Despite every attempt to value business property fairly, on occasion, the rateable values may come in high. The reasons for this vary, but can be attributed to:
- Local rental market changes since the AVD
- Physical changes to the property, such as expansion, layout, or conditions
- Changes to properties in close proximity that affect the value of the business property
- Comparable properties that are valued differently
- VOA property detail errors
Reviewing the rateable value of your properties: when should you do it?
The best time to review the rateable value of your properties
If the rateable value of your property comes in higher than it should be it can have costly consequences:
- Increased property taxes
- Negative impact on your cash flow
- Disqualification for small business or sector-specific reliefs or exemptions
- Higher liability until the next business rates revaluation
As such, it makes good business sense to review your property rateable value regularly, but especially if:
- There’s been a significant rent change
- Your property has been altered or is partially vacant
- The area where your property resides has experienced major economic or planning changes
- A new business rates revaluation has taken place
How to reduce your business' rateable value
Understand the check and challenge process to identify potential business rates savings
There’s a set 3-step process for checking and challenging your business’ rateable value. This may include general grounds that the value is high in comparison to rental and comparable evidence. Our guide breaks this down into more detail.
Rateable value for specialist properties: is there a different process?
Rateable value for specialist properties differs due to their unique rental values
Yes — specialist properties often use different valuation methods because they lack a normal rental market.
Two alternate methods:
- Contractor’s Basis Method - used for properties like schools, hospitals and prisons. This method calculates replacement cost to build a modern equivalent, adjusts for age/condition, adds land value and applies a decapitalisation rate to convert to annual rental value.
- Receipts and Expenditure Method - where no direct rental evidence, it is used to determine the rent that a tenant would be prepared to pay based on adjusted profits, e.g., Pubs, Hotels, Museums, specialist leisure properties, football stadiums and large infrastructure assessments such as airports water companies and telecom companies.
With upcoming changes to valuation methods, understanding what's right for your property, exploring available reliefs, and ensuring accurate valuations can lead to substantial savings. Whether you're expanding operations, managing a portfolio, or navigating rate appeals, our business rates specialists are here to help you optimise your business rates strategy and keep your occupancy costs under control.