EPC 2030: the hidden risks and opportunities for London commercial property owners

As London moves toward stricter EPC regulations, here are three critical factors landlords and investors should be aware of:

1. Asset Stranding Risk

From 2030 onwards, sub-B rated commercial properties risk becoming un-lettable under future regulations. For leveraged portfolios, this is not only a rental income issue — it directly impacts refinancing capability and loan covenants. A Grade D asset today is potentially just a few years away from becoming a stranded asset. That is no longer a renovation project — it is a balance sheet risk.

For commercial property owners, the implications extend beyond regulatory compliance itself. Energy performance is increasingly becoming part of the wider assessment of an asset: its operating costs, attractiveness to occupiers, future capital expenditure requirements and ability to remain competitive against newer or already upgraded stock.

This is particularly relevant when refurbishment is postponed until regulatory pressure makes intervention unavoidable. At that point, owners may have less flexibility over the scope, timing and sequencing of works. Addressing energy performance as part of a planned asset strategy gives owners more control over when capital is deployed and how improvements are integrated into the wider refurbishment programme.

2. Capital Liquidity & Tax Efficiency

What many owners don't realise is that retrofit and compliance upgrades can often be structured differently for tax purposes. In certain cases, retrofit expenditure may be reclassified from capital improvements to technical maintenance, potentially enabling significant tax efficiency and accelerated recovery of costs.

At Shatro, we structure project spend to align with your tax position from day one — helping recover a significant portion of build costs through appropriate classification, subject to professional tax advice.

This makes early project planning particularly important. A refurbishment budget is rarely a single category of expenditure: it can include replacement of existing systems, repairs, energy-efficiency measures, new installations, fit-out works and improvements to the building itself. Understanding that distinction before construction begins allows the project team, together with the owner's professional tax advisers, to document and structure expenditure more clearly.

The objective is not simply to make a building compliant. It is to understand how necessary investment can form part of a wider commercial strategy for the asset — combining technical performance, operational efficiency and long-term value.

3. Coordination Complexity

EPC compliance projects typically require coordination between multiple parties — architects, engineers, energy assessors and fit-out contractors. As deadlines approach, this fragmented approach leads to higher costs, scheduling delays and contractor shortages.

The challenge becomes greater when energy upgrades are carried out alongside an occupied refurbishment. Changes to HVAC, lighting, controls, insulation or other building systems can affect multiple trades and areas of the property at the same time. Decisions made by one consultant can have direct implications for construction sequencing, finishes, programme and cost.

Bringing these disciplines together at the planning stage helps identify dependencies before work reaches site. It also creates an opportunity to combine EPC-related improvements with refurbishment works that were already planned, rather than treating energy performance as a separate project later.

Our team delivers architecture, construction, technical audit documentation, EPC support and full fit-out under one coordinated roof — from concept to handover, so your asset stays bankable, lettable and liquid through 2030.