The Role of Energy Performance Certificates in Commercial Property De-Rating

JOE THORNTON
Oct 3
3 min read

As sustainability regulations tighten across the UK, Energy Performance Certificates (EPCs) have become a critical factor for anyone owning, leasing, or investing in commercial property. Beyond their environmental implications, EPC ratings can also impact business rates, eligibility for property de-rating, and overall asset value.

At Stripout London, we frequently work with property owners who are seeking to improve their building’s EPC rating—often through strategic strip-out and refurbishment—to achieve compliance and secure financial benefits. Here’s how EPCs play a role in the process.

🔍 What Is an EPC?

An Energy Performance Certificate measures the energy efficiency of a building on a scale from A (most efficient) to G (least efficient). It includes recommendations for improving efficiency and is valid for 10 years.

In the UK, an EPC is legally required when a commercial property is built, sold, or leased.
From April 2023, it is unlawful to let most commercial properties with an EPC rating below E, under the Minimum Energy Efficiency Standards (MEES).

👉 For detailed guidance, see the UK Government’s official resource: Energy Performance Certificates for commercial property.

🏢 EPCs and Commercial Property De-Rating

How is de-rating connected to EPCs?

De-rating typically refers to reducing the rateable value of a property to lower business rates, often because it is unfit for occupation due to structural works, refurbishment, or strip-out.

When preparing a property for major energy efficiency improvements—like new HVAC systems, insulation, or LED lighting—owners may strip out existing interiors, making the space temporarily unusable. In these cases:

The local council or the Valuation Office Agency (VOA) may agree to reduce or remove the rateable value during the period of works.
Demonstrating that improvements are to bring the building to MEES compliance (minimum EPC E) strengthens the case for temporary de-rating.

This is increasingly common as landlords upgrade older properties to meet new EPC requirements.

🛠️ The Role of Strip-Out in Improving EPC Ratings

EPC assessors consider:

Building fabric (walls, roof, floors, windows)
Heating and cooling systems
Lighting and controls

If outdated systems or inefficient layouts are present, a professional strip-out allows for:

✅ Removal of old plant and equipment✅ Exposure of structure for new insulation or services✅ Installation of energy-efficient systems

At Stripout London, we coordinate closely with EPC consultants, architects, and contractors to ensure spaces are cleared and prepared for sustainable upgrades—reducing long-term energy costs and improving rental viability.

💷 Financial and Regulatory Incentives

Why bother improving your EPC?

Avoid penalties for non-compliance (up to £150,000 for letting a non-compliant property).
Maintain or increase asset value—many tenants and buyers now require minimum EPC ratings.
Potential eligibility for temporary business rates relief (de-rating) while works take place.

According to Professional Energy, commercial landlords who proactively manage their EPC ratings see better occupancy rates and protect against future regulatory tightening. 👉 Read more

📈 What Should Property Owners Do?

Get an up-to-date EPC to understand your building’s current rating.
Plan upgrades early—stricter rules are expected beyond 2027, possibly pushing the minimum rating to C.
If extensive works are needed, explore de-rating during the strip-out and refurbishment phase.
Work with experienced strip-out contractors who understand both building control and the impact on EPCs.

🏗️ How Stripout London Can Help

We specialise in:

Comprehensive strip-outs of commercial properties to prepare for MEES compliance.
Removal of outdated HVAC, lighting, and fixtures to enable energy-efficient installations.
Ensuring compliance with all HSE and local authority requirements, supporting your case for de-rating.

✅ Final Thoughts

Energy Performance Certificates are no longer just a formality—they directly influence commercial property income, compliance, and business rates. With strategic strip-out and refurbishment, landlords can improve energy ratings, meet legal obligations, and potentially secure temporary relief on rates through de-rating.

📞 Ready to Discuss Your Project?

If you're planning an upgrade to improve your EPC rating and want to explore how strip-out services can support temporary de-rating, contact Stripout London.

👉 Visit stripoutlondon.co.uk or call us for a free consultation.