Key findings
KEY FINDINGS AND RECOMMENDATIONS
CHANGES IN RV POOL
*HOVER OVER FOR DATA
CONSOLIDATION OF SECTORS
Avison Young's research demonstrates that moving into the 2026 revaluation there is a continued consolidation of the significant sectoral shifts experienced between the 2017 and 2023 rating lists.
Retail, historically the largest sector experienced a momentous shift, the 2023 revaluation capturing the marked downturn across the sector. The growth of online sales proved pivotal, and as retail markets fell, demand was driven by the logistics sector. After a period of strong growth up to the April 2021 valuation date, the logistics/industrial sector moved from the third to take top spot as the largest sector by RV pool.
For the 2026 revaluation this dominance has continued. Sustained growth across the industrial and logistic sectors means we predict the total RV pool will increase from £18.7bn in 2023 to £22.8bn in 2026, now making up over 27% of the total.
The office market continues in second spot. Growth post pandemic has been largely muted, as the flight to quality combined with smaller take requirements continues.
The severity of decline in the retail sector has subsided as online sales have fallen back, although remaining above pre pandemic levels. The overall market appears to have stabilised. Although there are some green shoots, a recovery has yet to materialise and the sector remains firmly in third spot.
SPECIALIST SECTORS
We forecast that specialist sectors will be at the forefront of some of the largest increases for the 2026 revaluation.
Increases in build costs will affect levels of valuation across specialist classes valued on a replacement cost basis of valuation, affecting emergency services, healthcare, education, defence, power, and communications.