London Office Tenants get hit by Business Rates Increase
London Office tenants are bracing themselves for a steep increase in business rates, which will impact many businesses looking to move office to the capital.
If your company is considering an office relocation to London, you may need to factor additional moving office costs into your Moving Office Budget as Business Rates in the Capital are set to increase.
The capital is undoubtedly an unparalleled business destination for office movers, with a wealth of amenities and a global gateway of business opportunities. But how has the increase in UK business rates made an impact on occupiers in the central business location of W1? New business rates brought in from 1st April 2011 have had consequences for companies moving office to London W1. The UK Government decided to raise the cost of business rates with a new rating multiplier brought into force. This is currently set at 43.3 pence which is designed to reflect the September 2010 rise in the Retail Price Index with a calculated increase of 4.6 per cent. However, since the beginning of April in 2010 the Rating Revaluation correlated with an increase in the cost of property.
Office occupiers looking to relocate their company to London should take into account these factors when observing the cost of office property in central locations. In certain sought-after areas of London such as Soho this is translating to an increase in price per square foot of office space. In Mayfair the price of office space has increased by £6 per sq ft per year. Covetable commercial property in areas such as Covent Garden will see a rise in their rates of around £4 per sq ft.
To learn more about how the business rates hike will affect your business bring in the expert help of a Commercial Property Agent in London W1. Our Agent Members including Brogan Danvers Gold, REM Roberts & Kinney Green are well placed to negotiate and secure the best office space deal on your behalf.
