In a significant development, pub and hotel owners in Northern Ireland are set to face higher business rates as a result of a substantial increase in their property valuations. This change reflects the improved rental conditions since the COVID-19 pandemic, according to Stormont’s Land and Property Service (LPS).
The revaluation exercise, known as “Reval 2026,” has reassessed more than 75,000 non-domestic properties as part of a new list used in calculating business rates – an annual property tax that helps fund public services. The last revaluation was carried out in 2023, and the draft list, which LPS is encouraging businesses to check online, will be used to calculate business rates from 1 April 2026.
The revaluation does not change the overall amount of money generated from rates, but rather aims to redistribute the rates burden and ensure fairness in the system. However, the impact on individual businesses can vary significantly.
According to the data, hotels have seen an 84% increase in their total valuation, while pubs have risen by 47%. This significant change reflects factors such as improved conditions since the COVID-19 pandemic, as well as expansions and improvements to premises.
Industrial and warehousing values have also risen by about 16%, which is attributed to strong demand from logistics and manufacturing, as well as limited supply. Office values have increased overall by around 9%, driven largely by growth in Grade A offices in Belfast. Retail property values across Northern Ireland have also increased overall by around 9%.
Despite these changes, the majority of non-domestic properties are expected to see little or no change in their rates liability. Angela McGrath, the Commissioner of Valuation for Northern Ireland, emphasised that Reval 2026 is about ensuring rates are “distributed fairly based on current rental evidence.”
Businesses are currently paying rates based on rental levels that reflect the economic and market conditions during the pandemic in October 2021. Reval 2026 updates this position by using more up-to-date rental evidence from April 2024.
McGrath encouraged business ratepayers to view the new valuation online and stated that LPS will review any new or relevant information ratepayers wish to bring forward and make updates where appropriate before the new valuation list takes effect in April 2026.