August 1, 2025
Businesses across the South of England could be missing out on significant business rates savings due to a lack of awareness around eligibility for rate relief during major refurbishment works and building defects — a situation exemplified by a recent case led by surveyors Hellier Langston.
EPM, a prominent company in the region, took a lease on three floors of County Gates House in Poole in October 2023, only to discover severe building defects during their refurbishment programme, leaving the premises unfit for beneficial occupation for over a year.
The extensive refurbishment, which included the complete strip-out of heating systems, ceilings, lighting, partitions, and flooring, was halted in February 2024 when EPM uncovered serious defects in the building’s structure, including water penetration and mould issues due to failing window seals and inadequate cavity trays.
These issues forced the landlord to initiate substantial remedial works, including the full refitting of glazing throughout the building and the erection of large scaffolding structures on the second floor, which further prevented the tenant from progressing with their works.
Despite these circumstances, the affected floors of County Gates House remained in the business rates list, meaning EPM was liable for rates on space that was effectively unoccupiable. Hellier Langston, on behalf of EPM, successfully challenged the listing with the Valuation Office resulting in a six-figure saving for the occupier.
Jason Webb of Hellier Langston said: “Many businesses undertaking extensive refurbishments, or affected by landlord-instigated remedial works, may be entitled to have their premises temporarily removed from the rating list — but without professional advice, they risk missing out on thousands of pounds in potential savings.
“Where premises are incapable of beneficial occupation due to significant works, businesses should not be paying full business rates. However, many tenants either aren’t aware of this or face a complicated process to have their property de-listed.”
With landlords often needing extended periods to carry out major building works — as seen with County Gates House, businesses can sometimes face long stretches of paying rates on unusable space.
Hellier Langston encourages businesses across Dorset, Hampshire, and the wider South of England to review their current property situation, particularly where significant works are underway or planned, to explore potential rates savings.
