The Autumn Budget 2025 introduced the most significant overhaul of the business rates system in over a decade. For commercial landlords and agents managing vacant units, the announcements provide both challenges and opportunities. This article sets out what has changed, how the rules now apply to empty property relief, and what this all means for VacatAd as a beneficial-occupation provider – and for the wider sector.

The Autumn Budget 2025 introduced the most significant overhaul of the business rates system in over a decade. For commercial landlords and agents managing vacant units, the announcements provide both challenges and opportunities. This article sets out what has changed, how the rules now apply to empty property relief, and what this all means for VacatAd as a beneficial-occupation provider – and for the wider sector.

Empty Property Relief: What Has Changed and Why It Matters

One of the most impactful changes remains the 13-week occupation requirement to reset Empty Property Relief (EPR). Previously six weeks, the move to 13 was designed to close down artificial short-term occupations. It has now been fully confirmed and remains a cornerstone of the system going forward.

For landlords, this means:

You must show 13 continuous weeks of genuine occupation before a new period of 100% empty relief can begin.
Any scheme that cannot meet the “exclusive, beneficial, non-transient” occupation test will be rejected.

For VacatAd, whose model is built on compliant, measurable occupation, this change is manageable and already embedded into our operational cycle. Our technology-first presence is constant, trackable, and satisfies the legal tests for rateable occupation.

The impact on the wider mitigation industry is less neutral: schemes relying on symbolic or artificial activity are now heavily exposed.

New Business Rates Multipliers: Winners and Losers from 2026

From April 2026, England moves from a two-multiplier system to five separate multipliers, including:

Small business multiplier (non-RHL)
Standard multiplier (non-RHL)
Small business RHL multiplier
Standard RHL multiplier
High-value multiplier (new) for properties with RV £500,000+

The permanent lower RHL multipliers support the high street by cutting rates for shops, restaurants and hospitality venues. For vacant properties in that category, this slightly reduces the cost of holding them – but not enough for most landlords to ignore mitigation altogether.

The new high-value multiplier creates the biggest shift. Large offices, industrial units, logistics sheds and big-box retail will pay more from 2026 onwards. For some landlords with multiple high-value voids, this will materially increase their holding cost.

For VacatAd’s clients, this change actually strengthens the case for beneficial occupation. Where an empty warehouse would previously cost £X in rates, from 2026 it may cost significantly more, making compliant mitigation even more financially compelling.

2026 Revaluation and Transitional Relief

The 2026 revaluation resets Rateable Values (RVs) using 2024 rental evidence. Many sectors have shifted meaningfully since the last cycle. For example:

Logistics and industrial sites may rise again
Secondary retail may fall or stabilise
Some regional offices may drop while prime city stock may rise

With the updated RVs, landlords should expect:

Transitional caps to limit sudden increases
Faster alignment to market values
A requirement to re-forecast budgets early, not after April

Whether a property’s RV goes up or down, vacant units will continue to generate avoidable tax liabilities. VacatAd remains focused on ensuring landlords can legally remove those costs through compliant occupation.

Compliance and Enforcement: A Tougher Landscape Ahead

The Budget reinforced a clear national trend: firmer enforcement and clearer reporting obligations.

Duty to Notify

Coming into force between 2026 and 2029, Duty to Notify requires:

Reporting changes to the VOA within strict time frames
Annual confirmations of property and occupancy details
Accurate logs of when and how a property is occupied

This directly affects any landlord using intermittent occupation strategies. Inaccurate reporting will lead to penalties.

VacatAd’s model already maintains:

Documented occupation logs
Timestamped activity evidence
A transparent footprint of beneficial use

This positions VacatAd well within the emerging compliance environment, while non-transparent schemes will struggle.

Crackdown on Avoidance

Authorities continue to target:

Short-duration sham occupancies
Artificial businesses with no economic presence
“Prop-tech” schemes that rely on symbolic activity with no real use

High-profile cases (including agricultural, storage or creative use claims rejected by councils) show that councils are scrutinising every relief request.

VacatAd is differentiated because:

Our use is real, exclusive, and beneficial
Community benefit is measurable
Our technology produces evidence every 15 minutes
Case law continues to support minimal but genuine occupation

This Budget environment therefore reinforces VacatAd’s legitimacy while increasing risk for weaker mitigation models.

What Commercial Landlords Need to Do Now

1. Review new RVs immediately

Budget for 2026 liabilities early, especially for large industrial and distribution assets.

2. Identify which properties will fall under the new high-value multiplier

These will become considerably more expensive to keep empty.

3. Check tenant demand cycles

Lower multipliers for RHL may improve letting prospects but are not a substitute for a strategy during void periods.

4. Prepare for Duty to Notify

If you are using any type of intermittent occupation, you will need traceable evidence and consistent reporting.

5. Consider a long-term vacancy strategy

VacatAd provides predictable, compliant occupation that adapts to new regulatory cycles and gives landlords certainty.

How the Budget Affects VacatAd’s Core Model

Across every major policy area, the impact on VacatAd can be summarised as:

Beneficial occupation remains lawful and effective
Higher multipliers on large properties increase the value of mitigation
Longer EPR occupation periods are fully compatible with our service
Stricter enforcement favours transparent, tech-led solutions like ours
Frequent revaluations create ongoing demand for cost-control strategies

The Budget does not threaten the viability of VacatAd’s model. If anything, the direction of travel — greater transparency, stricter compliance, and higher liabilities for empty high-value units — reinforces why our approach exists.

Speak to a VacatAd Expert

If you manage vacant commercial properties and want clarity on how the Autumn Budget affects your portfolio, our team can help you:

Analyse your 2026 liabilities
Model savings using compliant beneficial occupation
Prepare for Duty to Notify
Build a vacancy strategy aligned with the new rates environment

Get in touch with VacatAd for tailored guidance on navigating the new business rates landscape.