In London’s competitive commercial property market, the numbers behind your investment can make all the difference. Two areas that deserve particular attention are property rating – which determines your business rates liability – and valuation, which underpins financing, negotiations and long-term planning.
Together, these factors shape both short-term profitability and long-term growth potential. An inaccurate rating or valuation can result in avoidable costs, financing issues or reduced appeal to prospective buyers or tenants.
In this article, we explore the property valuation impact on commercial investments, how rating assessments affect your income, and why expert input is essential. We will also explain how the in-house specialists at Mellersh & Harding support clients with strategic, insight-led property advisory services across central London.
Understanding property rating in London
Property rating refers to the system used to calculate business rates – a significant cost for both occupiers and landlords.
In simple terms, every commercial property is assigned a rateable value by the Valuation Office Agency (VOA), based on its estimated annual rental value. Business rates are then calculated using this figure alongside a government-set multiplier.
For landlords and investors, understanding property rating in London is essential. High rateable values can make a property less attractive to potential tenants, reduce flexibility on rent negotiations, or eat into yield. For tenants, business rates can be one of the largest overheads after rent itself.
The VOA undertakes regular revaluations to reflect changes in the market, and there are specific circumstances in which their figures can be challenged. For example, if the property’s condition, layout or use has changed, or if it has been over-assessed compared to similar stock.
Accurate rating advice ensures liabilities are fair, avoids disputes, and can uncover opportunities to reduce costs.
At Mellersh & Harding, our commercial property valuation specialists have a deep understanding of property rating London issues. We work with clients to assess rating exposure, advise on reliefs and, where necessary, negotiate to secure fairer outcomes.
The strategic role of investment property valuation
Valuation is both an art and a science. It requires not only technical accuracy and knowledge of recent market transactions, but also a practical understanding of local trends, demand, and property potential.
For investors and landlords, the property valuation impact can be far-reaching – influencing everything from borrowing and tax planning to negotiation strategy and long-term forecasting.
There are several established methods used in investment property valuation:
- Comparative method – assessing the value based on recent sales or lettings of similar properties.
- Income capitalisation – calculating value based on rental income and yield expectations.
- Cost approach – evaluating the land and build costs, minus depreciation.
Valuations are required in a wide range of situations, including company accounts, mergers and acquisitions, probate, insurance, and secured lending. Getting it wrong can be costly – either through missed opportunities, mispriced assets, or reduced access to funding.
At Mellersh & Harding, we take a hands-on approach to property valuation. Partner Andrew Widdup personally inspects, measures, and values every property, ensuring each assessment is accurate, defensible, and tailored to the client’s needs.
That level of involvement means we can offer precise, experience-led guidance with real strategic value – not just a number on a report.
How valuation and rating affect investment outcomes
Both valuation and rating play a critical role in shaping commercial property performance — not just at the point of purchase, but throughout the lifecycle of an asset. Their combined influence can be felt in yield calculations, refinancing opportunities, asset planning, and buyer or seller confidence.
An inaccurate valuation can distort forecasts.
Undervaluation might limit borrowing potential or lead to missed opportunities, while overvaluation can result in failed negotiations, inflated liabilities, or reduced interest from buyers.
Similarly, unexpected rating assessments, especially following revaluation periods, can undermine net returns, creating uncertainty for both landlords and occupiers.
Even modest differences in either figure can have a meaningful impact on rental strategy, holding costs, or resale value. That is why regular reviews of both valuation and rating are essential. Market dynamics shift, lease profiles change, and regulatory updates can all affect a property's standing.
With expert input, however, investors can stay ahead of these changes, taking informed action that supports better returns, smarter borrowing, and long-term portfolio resilience.
How Mellersh & Harding can support your investment property valuation needs
At Mellersh & Harding, we combine deep local market insight with decades of experience to provide accurate, strategic guidance across all aspects of commercial property.
Our long-established presence in Central London’s real estate market means we understand not just the numbers, but the nuances — from shifting yield expectations to the implications of a revaluation cycle.
All investment property valuations are personally undertaken by Partner Andrew Widdup, ensuring your report is based on first-hand inspection, robust methodology, and a feel for the market that only experience brings.
Our wider team offers integrated support across leasing, asset management and investment consultancy, enabling us to connect your property valuation impact with practical next steps, whether you are acquiring, refinancing, or restructuring your portfolio.
For expert advice on property rating and valuation, talk to Mellersh & Harding.
Accurate property rating and valuation in London are too important to leave to chance. Whether you are a landlord, occupier or investor, a timely review of your assets could unlock savings, increase market appeal, and support more strategic decisions.
To discuss your portfolio or arrange an expert valuation, call the team at Mellersh & Harding on 020 7522 8500, or drop us a line.
Back