Owen Spencer writes for CoStar on the impact of business rates on serviced offices
Owen Spencer, a specialist lawyer in our Corporate Occupiers and Tenants team, has written an article for CoStar on the impact of business rates on serviced offices.
Despite heavy lobbying from over 60 flexible workspace operators regarding business rates, the budget did not go their way. The anticipated new higher value multiplier has been announced and it is likely to hit flex operators hard.
From 1 April 2026, a new higher business rates multiplier for larger properties with a rateable value of £500,000 or more will be introduced. These properties will face a multiplier of 2.8p above the standard 48p rate.
In the article, Owen examines:
- the Valuation Office Agency (VOA)’s recent reclassification of flexible workspaces, which has significantly increased operating costs
- how higher costs could push SMEs and startups away from flex spaces, reducing occupancy and weakening demand
- why operators may avoid prime locations and target lower-value areas to manage rate exposure
- the strain on all-inclusive models
- how retroactive policy changes create instability, complicating investment decisions and long-term planning for operators and landlords.
Read the full article (paywall), or get in touch with our team if you’d like to discuss your options.
