Cambridge Commercial Property to Let: What You Need to Know About Business Rates in Cambridge UK

If you're a landlord with Cambridge commercial property to let, business rates can be a surprising and sometimes costly aspect of property ownership. Many landlords don’t factor them in until it’s too late — potentially cutting into margins or creating confusion with tenants. Here's how to stay informed and structured when it comes to business rates in Cambridge UK.

What Are Business Rates?

Business rates are a local tax on most non-domestic properties, calculated by the Valuation Office Agency (VOA) based on a property's rateable value. This figure reflects the annual rental value the property could achieve on the open market. Each council then applies a multiplier to determine what’s owed.

In Cambridge, rateable values can vary significantly depending on size, use, and location. Central units and high-street retail often command higher rates, while smaller office spaces or light industrial units may benefit from relief.

Who Pays — Tenant or Landlord?

Typically, the tenant pays the business rates, especially in full repairing and insuring (FRI) leases. However, lease terms can shift this burden. If your lease includes all-inclusive rent or is structured differently, you could be liable — even during void periods. That’s why it’s vital to clarify responsibilities in every agreement.

Empty Property Rate Relief

If your commercial unit is vacant, you may still be liable for business rates after a short exemption period (usually three months, or six months for industrial properties). After that, full rates kick in — unless the property qualifies for further relief, such as listed status or low rateable value.

Vacancy can therefore be costly, which is why smart lease structuring and proactive marketing (like what we do at Cambridge Stays) are so important.

Check for Small Business Rate Relief (SBRR)

Some properties with a rateable value below £15,000 may qualify for Small Business Rate Relief, depending on the tenant’s circumstances. This can mean up to 100% discount in some cases. It’s a strong incentive for smaller tenants — and worth flagging when marketing your space.

Cambridge Stays Advises on Business Rates and Ensures Clear Lease Agreements

Business rates shouldn't be an afterthought. At Cambridge Stays, we help landlords understand their liability, ensure leases are worded to protect income, and advise tenants on relief options. That means fewer surprises and better alignment on costs.

Confused About Business Rates?

Let Cambridge Stays help you make sense of the numbers. Whether you’re leasing retail, office, or light industrial space, we’ll make sure your Cambridge commercial property to let is set up for clarity, efficiency, and profitability.