Business rates rarely grab headlines, but the upcoming increases from 1 April 2026 have caused significant concern, particularly for sectors such as hospitality, where pubs are set to be hit hardest.
There’s a common misconception that these increases were introduced in the most recent budget. In reality, business rate revaluations typically occur every three to five years, with the last one taking place in 2023.
A revaluation assesses the rental value of a property at a specific point in time. For the April 2026 changes, valuations are based on April 2024 rental values. This rental value is then applied to the size of the premises to determine its rateable value. Each year, the government sets a Uniform Business Rate (UBR) multiplier, which is applied to the rateable value to calculate the final bill.
Why This is Good News for Flex Office Occupiers:
Business rates are one of the largest overheads for flex office operators. From 1 April 2026, operators are expected to see increases of 9–15% in their business rates bills.
However, flex office occupiers are unlikely to feel the impact.
The London flex office market is one of the most competitive in the world. As a result, operators are under pressure to keep pricing attractive and are far more likely to absorb these increases rather than pass them on to occupiers.
What this means for businesses considering flex:
- More incentives
- Better commercial deals
- Greater choice of locations and operators
- Shorter, more flexible commitments
For businesses sitting on the fence or questioning whether to move away from a traditional lease, this presents an ideal opportunity to test flex without long-term risk.
Why are Flex Offices so Popular in the UK?
The UK has one of the most mature flexible office markets globally, with London widely recognised as the largest single-city flex market.
This growth is driven in part by the limitations of traditional UK office leases, which often expose tenants to:
- Long lease terms
- Upward-only rent reviews
- Triple-net lease structures
In contrast, flexible offices appeal to businesses that want agility and control, offering:
- Short-term commitments
- Predictable, all-inclusive pricing
- Easy scalability as teams grow or contract
What Happens Next?
Flexible office space continues to become deeply embedded in how UK businesses operate and scale.
While the challenge of rising business rates sits primarily with operators, occupiers should recognise the leverage this creates and take advantage of the current market conditions. There has rarely been a better time to give flex a try.
Not sure where to start?
As the Independent Flex Office Insider, I help entrepreneurs and businesses navigate the flex office market by finding and negotiating spaces that genuinely support their operational, financial and growth needs.
