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News Release

London

2017 rating revaluation impact along the Elizabeth Line

Canary Wharf, Stratford and Reading continue to offer lower occupational costs


London, 14th March, 2016 – New data from JLL's Rating team has shown the effect the 2017 rating revaluation will have on the rate liability of grade A offices in the towns along the route of the Elizabeth Line.

The data shows that offices in Central London Villages (Paddington through to Whitechapel) will continue to pay the highest business rates. Occupiers looking to stay within the Capital will find the lowest rates for grade A office stock in Canary Wharf and Stratford. Outside of London, towns such as Reading and Maidenhead which are delivering high quality office stock will continue to offer lower occupational costs than those in Central London despite significant rate increases.

2017 Rating Liability Impact: The Elizabeth Line


2017 Rating Liability Impact: The Elizabeth Line Source: JLL

Phillip Jay, Director of Rating, JLL, said: "We are regularly being asked what impact the Elizabeth Line and the 2017 revaluation will have on rates. Our data does not consider transitional relief as this will not be known until the autumn but gives a good indication as to what occupiers could pay and how to budget appropriately. Although we expect rate increases to be cushioned by transitional relief, the process by which these changes are phased in gradually, there will still be major impacts for many occupiers. We believe Canary Wharf and Stratford in London and Reading in the South East will be the most attractive locations for occupiers along line."

James Finnis, Head of South East office agency at JLL, added: "While some regions of the South East, particularly those with an Elizabeth Line station, will face substantial business rate increases, these towns will still have a significant occupational cost advantage to occupiers when compared to the costs of locating within core Central London.

"Occupancy costs in Central London are significantly more expensive than the South East towns – the rating revaluation will exacerbate this differential - and we expect price sensitive occupiers to seek to address this by building or increasing their presence in the wider South East region, where major new, highly efficient, stock is being delivered close to major infrastructure hubs at substantially lower overall occupational costs."

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Notes to editors

JLL's latest business rates research 2017 - A brave new world? provides the most up to date forecast of the upcoming rating revaluation.