EPC exemptions allow landlords to legally let a property that falls below the minimum energy efficiency standard, provided the exemption is registered on the government's PRS Exemptions Register. There are six exemption types for the EPC E minimum in force today, and government has proposed updated versions with a higher cost cap and longer duration alongside a band C standard. You cannot claim an exemption verbally or in writing to a tenant. It must be formally registered, or you are in breach of the MEES Regulations (SI 2015/962) and exposed to a civil penalty of up to £5,000 in total per property, across all breaches combined. Government has proposed raising that maximum to £30,000, which is not yet law. See our guide to EPC non-compliance penalties for the full breakdown.
EPC exemptions: quick reference
| Exemption type | When it applies | Duration |
|---|---|---|
| All improvements made | All recommended measures installed to the cost cap; property still below minimum band | 5 years |
| High cost (cost cap) | The cheapest recommended improvement exceeds the £3,500 cost cap | 5 years |
| Third-party consent refused | Freeholder, planning authority, or tenant formally refused required permission | 5 years (expires when tenant leaves if that tenant refused) |
| Property devaluation | RICS surveyor confirms improvements would reduce market value by more than 5% | 5 years |
| Wall insulation | Accredited expert confirms insulation would damage building fabric or structure | 5 years |
| New landlord | Property acquired unexpectedly, such as through inheritance | 6 months only |
Each exemption is covered in detail below. Registration on the PRS Exemptions Register is always required: a qualifying reason without a registration is not a legal defence.
EPCGuide's analysis of 27.6 million EPC certificates covering 19.7 million homes shows that 49.6% of homes in England and Wales are rated below band C. If the proposed band C standard becomes law, a significant proportion of those properties would not reach C through improvements alone, making exemptions the only legal route to continued letting for many landlords after 1 October 2030.
Which landlords are most likely to need an EPC exemption?
Not all rental properties face the same challenge. Exemptions are relied on disproportionately by landlords with older solid-walled stock, where insulation is either technically difficult, legally blocked by third parties, or prohibitively expensive relative to the cost cap.
EPCGuide's analysis of a 75,000-certificate sample across 15 local authorities reveals significant variation in below-C rates across property types and construction eras.
By property type
| Property type | Private rentals in sample | Below band C |
|---|---|---|
| Bungalow | 316 | 51.3% |
| House | 8,332 | 40.6% |
| Maisonette | 758 | 30.9% |
| Flat | 9,647 | 27.6% |
Bungalows sit at 51.3% despite often having loft insulation, because their large roof-to-floor ratio creates a heat loss profile that standard improvements rarely fully resolve within the cost cap. Houses sit at 40.6%, driven by solid-wall terraced stock. Flats are lowest at 27.6%, partly because shared party walls reduce exposed surface area and partly because many post-2000 purpose-built blocks already meet band C.
By construction era
| Construction era | Private rentals in sample | Below band C |
|---|---|---|
| Victorian (pre-1900) | 2,450 | 48.9% |
| Edwardian (1900-1929) | 5,739 | 44.2% |
| Inter-war (1930-1949) | 2,399 | 42.2% |
| Post-war (1950-1966) | 1,524 | 37.5% |
| Early 1970s (1967-1975) | 1,162 | 31.9% |
| Late 1970s (1976-1982) | 639 | 21.9% |
| Late 1990s (1996-2002) | 671 | 19.4% |
| 2003-2021 | 3,181 | 6.4% |
Properties built before 1930 make up the majority of the exemptions picture. At 48.9%, nearly half of Victorian private rentals are already below band C. These properties almost always have solid walls: no cavity to fill, meaning wall insulation costs £8,000 to £25,000 or more. For many, the £10,000 proposed 2030 cost cap will be reached before band C is achieved.
36.9% of private rentals in the sample have uninsulated solid walls, according to EPCGuide's analysis. That is the single biggest structural barrier to achieving band C, and would be the primary driver of exemption registrations if the proposed rules take effect.
Practical implication: if you own a pre-1930 rental property and the band C standard becomes law, an exemption is a realistic planning outcome. Start gathering evidence now. Government has proposed that qualifying spend toward the £10,000 cap would count from 1 October 2025, so keep invoices even though that start date is not guaranteed.
What is an EPC exemption?
An EPC exemption is a formal registration on the PRS Exemptions Register that permits a landlord to continue renting a property below the minimum EPC rating when specific qualifying conditions are met. The legal basis is the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
A registered exemption is not optional. It is the only legal defence for letting below the minimum standard. A landlord who has a genuine reason for non-compliance but fails to register it is treated identically to a landlord who has no reason at all.
What are the current MEES exemptions? (EPC E minimum)
The current minimum standard is EPC band E. These six exemptions apply to landlords whose properties cannot reach that rating. All are registered on the PRS Exemptions Register at gov.uk/register-prs-energy-standard-exemption.
1. All improvements made exemption
A landlord who has installed every recommended energy efficiency improvement on their EPC report, up to the £3,500 cost cap (including VAT), and the property still does not reach band E, can register this exemption. It also applies where no recommended improvements exist at all.
Evidence required: Valid EPC, contractor invoices, installation certificates for completed works.
Duration: 5 years.
2. High cost exemption (cost cap)
A cost cap exemption applies when no single recommended improvement can be installed for less than the current £3,500 cap.
Critical distinction: If any recommended improvement costs less than £3,500, it must be installed first. If the property still does not reach band E after that work, the correct exemption is "all improvements made," not "high cost." This is one of the most common registration errors. See our guide on which improvements count toward the cost cap.
Evidence required: Three written quotes from different qualified installers, each confirming the cheapest recommended improvement exceeds the cap. Plus a valid EPC.
Duration: 5 years. On expiry, the landlord must re-attempt. If costs still exceed the cap, a new exemption can be registered.
3. Third-party consent refused
This exemption applies where the required improvements legally need consent from a third party, that consent was formally requested, and it was refused or granted only on conditions the landlord cannot reasonably meet. Third parties who commonly need to give consent include:
- Freeholder or superior landlord for leasehold flats requiring external wall insulation, heat pumps, or solar panels
- Local planning authority for listed buildings or properties in conservation areas
- Mortgage lender where the lease requires lender consent for structural modifications
- Current tenant where works require access and agreement during a tenancy
This exemption is most relevant to leasehold flat landlords and those with listed buildings.
Evidence required: Correspondence showing consent was required and evidence of refusal (written refusal letter, planning decision notice, or equivalent). Plus a valid EPC.
Duration: 5 years, unless the refusing party is the current tenant. If the tenant refused, the exemption expires when that tenant leaves. There is no grace period. You must carry out the improvement before the next tenancy begins. This is the most misunderstood rule in the entire exemption system.
4. Property devaluation exemption
A devaluation exemption applies where an independent surveyor confirms that the recommended improvements would reduce the property's market value by more than 5%. This typically applies where external cladding on a period property or structural modifications to a listed building would materially reduce what the property is worth.
Evidence required: Report from an independent RICS-registered surveyor specifically quantifying that the recommended improvement(s) would devalue the property by more than 5%. The surveyor must be genuinely independent, not an adviser working on the same renovation project. A general concern about value impact does not qualify; the 5% threshold must be stated explicitly.
Duration: 5 years.
5. Wall insulation exemption
This exemption applies where cavity wall, external wall, or internal wall insulation is recommended on the EPC, but a qualified expert confirms the installation would damage the fabric or structure of the property. It is most relevant for solid-walled period properties where external cladding or internal insulation would cause moisture or structural problems.
Evidence required: Written expert opinion from a professional on one of these specific accreditation registers: AABC, RICS Building Conservation Accreditation, ICE/IStructE CARE, or CIAT Directory of Accredited Conservationists. A general structural engineer's report does not qualify. The regulations name these specific registers, and if your expert is not on one of them, their report cannot support this exemption.
Duration: 5 years.
6. New landlord temporary exemption
A temporary exemption available where a landlord acquires a property unexpectedly (through inheritance, for example) and needs time to bring it into compliance. This gives a short window to arrange assessments and improvements before standard compliance obligations apply.
Duration: 6 months. This is a bridge, not a permanent solution.
What exemptions are proposed under the 2030 EPC C rules?
Government has said it intends to raise the minimum EPC standard to band C for privately rented properties in England and Wales from 1 October 2030, covering both new and existing tenancies, and to update the exemption framework to match. It set this out in its January 2026 consultation response.
None of this is law. It requires an Act of Parliament and then a statutory instrument amending the 2015 Regulations, targeted to be in force during 2027. No instrument has been laid, and the near-identical EPC C by 2025 proposal was scrapped in September 2023. Read the rest of this section as a description of intent, not obligation.
The core exemption categories would carry forward, with changes to the cost cap, duration, and heritage provisions.
How would the proposed £10,000 cost cap work?
The cap in force is £3,500 including VAT. Under the proposals it would rise to £10,000 per property including VAT, with an alternative cap of 10% of market value for properties valued below £100,000.
Government has proposed that qualifying spending would count from 1 October 2025, including the cost of the EPC assessment itself. Because the rules are not made, that start date is not guaranteed. Keep every invoice regardless: it costs nothing and protects you if the date holds.
Under the proposals, a landlord who spends the cap on all recommended improvements without reaching band C could register a cost cap exemption and continue letting legally, supplying invoices and receipts for all qualifying works plus a valid post-improvement EPC.
A cost cap does not excuse you from making improvements. You must carry out every recommended measure up to the cap. Grant money does not count towards the cap either: only your own spend does, so grant-funded measures leave your cap intact. For a full breakdown of which improvements count, see our guide on the cost cap.
How would the third-party consent exemption change?
The third-party consent exemption would continue under the proposed rules. But the practical impact has shifted since Section 21 abolition. Previously, if a tenant refused EPC works, you could serve notice, complete the works, and re-let. That exit route no longer exists. A tenant consent exemption now becomes a potentially indefinite deferral. For the full picture on how tenancy reform reshapes EPC strategy, see our Renters' Rights Act EPC guide and our guide on how the Renters' Rights Act affects EPC exemptions.
What about devaluation and negative impacts exemptions?
The devaluation exemption (improvements would reduce market value by more than 5%) would carry forward with the same evidence requirements.
The proposals also describe a clearer "negative impacts" exemption for improvements that would damage the building fabric, structure, or historic character. This would consolidate the existing wall insulation exemption into a broader category, distinct from devaluation (financial) because it covers physical harm.
How long would exemptions last under the proposals?
This is one of the biggest proposed changes. Under the MEES rules in force, registered exemptions last 5 years, and the new-landlord exemption lasts 6 months. Government has proposed extending this to 10 years on three grounds: cost cap, property value adjustment, and negative impacts. Other grounds would stay at five years.
A longer duration would reduce the administrative burden, though improvements that were unaffordable at registration may become viable within a decade.
Summary: in force vs proposed
| Feature | In force (EPC E) | Proposed (EPC C), not law |
|---|---|---|
| Minimum standard | Band E since 1 April 2020 | Band C from 1 October 2030 |
| Cost cap | £3,500 including VAT | £10,000 (or 10% of value if below £100k) |
| Exemption duration | 5 years (6 months new landlord) | 10 years on three grounds |
| Maximum penalty | £5,000 in total per property | £30,000 |
| Spending counts from | N/A | 1 October 2025 |
| Heritage exemption | Available (listed buildings) | Removal proposed |
What is happening to the heritage property exemption?
The government's January 2026 consultation response set out an intention to remove the heritage exemption for listed buildings. It has not been removed. Under the regime in force, Regulation 5(1)(a) of the Energy Performance of Buildings Regulations allows listed buildings and officially protected heritage properties to avoid the EPC requirement, provided compliance would unacceptably alter their character or appearance.
In practice that grey area is wide enough that many listed building landlords never obtained an EPC at all. If the reform is legislated, listed buildings would be treated like any other rental property for EPC purposes.
Even then, listed buildings would not be left without protection. The third-party consent exemption applies where listed building consent is refused, and the proposed negative impacts exemption would cover works that would damage historic fabric. Plan on the assumption that the blanket "I'm listed, I don't need an EPC" position has a limited shelf life, while recognising it is still the law today.
For full details, see our listed building EPC heritage exemption guide.
How do exemptions work for HMOs?
Houses in Multiple Occupation (HMOs) follow the same exemption framework as standard rental properties, but with additional complexity.
The January 2026 consultation response set out an intention that HMOs would need a whole-building EPC rather than individual per-room assessments, with any exemption applying to the entire property. Like the rest of the package, that is proposed rather than made.
The practical challenge for HMOs is that whole-building upgrades tend to be more expensive than single-let properties, making any cost cap more likely to be reached. If your HMO requires freeholder consent for building-level works (external wall insulation in a converted property, for example), the third-party consent exemption applies. But if the HMO is freehold and you own the building, you cannot claim third-party consent unless the issue is tenant consent or planning authority refusal.
Transitional arrangements for HMOs brought newly into scope have been discussed but not settled in legislation. See our full HMO EPC compliance guide for the complete picture.
How do you register an EPC exemption?
Registration is free, instant, and self-certified on the PRS Exemptions Register. But enforcement authorities can challenge a registration retroactively if the evidence is inadequate. Have all documents ready before you start, because the portal does not save progress mid-application.
Step 1: Gather your documents
Before opening the portal, prepare:
- Valid EPC for the property (you need this for every exemption type)
- Full property address
- Exemption-specific evidence: installer quotes (cost cap), contractor invoices (all improvements made), refusal correspondence (third-party consent), RICS surveyor report (devaluation), or accredited expert opinion (wall insulation/negative impacts)
Step 2: Go to the PRS Exemptions Register
Visit gov.uk/register-prs-energy-standard-exemption and create an account or log in.
Step 3: Enter the property address
The portal links your registration to existing EPC records for the property.
Step 4: Select the correct exemption type
Choose the exemption that matches your situation precisely. Do not select the nearest match. Selecting "high cost" when "all improvements made" is correct (because cheaper improvements exist but have not been installed) is the most common error and will fail enforcement scrutiny.
Step 5: Upload evidence
Upload all supporting documents as PDFs. Everything must be uploaded in this session.
Step 6: Self-certify and submit
Confirm the information is accurate and submit. The exemption is registered immediately with no waiting period. It appears on the publicly accessible register from the moment of submission.
For a more detailed walkthrough of each step, see our dedicated PRS Exemptions Register guide.
What happens when an EPC exemption expires?
When an exemption reaches its expiry date, it simply ends. There is no automatic renewal and the PRS portal sends no reminders.
Immediate consequence: a landlord whose exemption expires is in breach of MEES from the expiry date, carrying a civil penalty of up to £5,000 in total per property under the rules in force. Government has proposed raising that to £30,000 alongside the band C standard.
What you must do before expiry:
- Commission a new EPC assessment. Improvements that were unaffordable five years ago may now be viable.
- Reassess qualifying improvements. New products, lower costs, or changed circumstances could mean your property can now reach the minimum standard.
- If the situation is unchanged, register a new exemption with updated evidence. There is no limit on consecutive exemptions, provided each is supported by current, valid evidence.
- Set a calendar reminder. The portal sends no reminders.
Key rule: exemptions do not transfer on sale. If a property with a registered exemption is sold, the exemption ceases on completion. The new owner must either bring the property to standard or register their own exemption with fresh evidence.
What percentage of rental properties could qualify for an exemption?
Certain property types will disproportionately rely on exemptions, because their fabric makes reaching EPC C within the cost cap much harder:
- Solid-walled properties (pre-1930, no cavity for insulation) frequently require wall insulation costing £5,000 to £20,000+. For many, reaching EPC C within the proposed £10,000 cap would not be achievable.
- Victorian and Edwardian terraces face compounding challenges: solid walls, single-glazed sash windows (often in conservation areas), and limited loft access.
- Leasehold flats where the freeholder controls the building fabric. Landlords of individual flats cannot unilaterally install external wall insulation or modify shared areas. The third-party consent exemption will be heavily used here.
EPCGuide estimates roughly 15 to 20% of private rented properties currently below band C would be unable to reach C within the proposed £10,000 cost cap. If the standard becomes law, those landlords would need exemptions to continue letting legally after October 2030. The exact figure will depend on installation costs and uptake of grant funding through ECO4 and the Boiler Upgrade Scheme. For landlords who can reach C within budget, our guide to the cheapest ways to improve your EPC rating ranks every measure by cost per SAP point gained.
What are the most common mistakes landlords make with EPC exemptions?
1. Not registering at all
The single most common and most costly mistake. "My freeholder won't allow it" or "it would cost too much" is not a legal defence. Only a formal registration on the PRS Exemptions Register protects you. An unregistered exemption is no exemption.
2. Selecting the wrong exemption type
Using "high cost" when "all improvements made" applies, because cheaper improvements exist but have not been installed. The threshold tests are different. Enforcement authorities audit exemption types against uploaded evidence.
3. Treating a tenant consent exemption as a 5-year protection
If the third-party consent exemption was registered because the tenant refused works, it expires when that tenant leaves, not after 5 years. Re-letting without completing the improvements is an immediate breach. With Section 21 now abolished, this trap is more consequential than ever.
4. Letting the exemption expire without tracking the date
No reminders are sent. Under periodic tenancy (now the default), there are no natural renewal points. Set your own reminder.
5. Using a non-accredited expert for the wall insulation exemption
The regulations name specific accreditation registers: AABC, RICS Conservation, CARE, CIAT. A general structural engineer's report does not qualify. Verify accreditation before commissioning the report.
6. Getting quotes from non-independent installers
The high cost exemption requires three quotes from different, qualified installers. Quotes from the same company under different names can be challenged.
7. Assuming the exemption transfers to a new buyer
It does not. The new owner starts from scratch.
8. Registering a false or misleading exemption
Providing false or misleading information on the register carries a penalty of up to £1,000 under the rules in force, within the £5,000 per-property total. Government has proposed a £30,000 maximum penalty under the new rules. Local authorities are expected to increase scrutiny of registrations either way.
Frequently Asked Questions
Can I claim an EPC exemption without spending any money on improvements?
Only in limited circumstances. The high cost exemption applies if every recommended improvement exceeds the cost cap, meaning no affordable improvement exists. The third-party consent exemption applies if a third party refuses permission for the works. But in most cases, you must install all affordable recommended improvements first. If the property still does not reach the minimum standard after that, the "all improvements made" exemption covers you.
How much does it cost to register an EPC exemption?
Nothing. Registration on the PRS Exemptions Register is completely free. There is no fee for submitting an exemption or for registering multiple properties. The costs involved are for obtaining the evidence: EPC assessments (typically £60 to £120), installer quotes, and professional reports if needed.
Can my letting agent register an exemption on my behalf?
Yes. Letting agents can use the PRS Exemptions Register portal to register on a landlord's behalf. The registration must record the landlord as the property owner. The landlord remains legally responsible for ensuring the exemption type is correct and the evidence is valid.
Do EPC exemptions apply in Scotland and Northern Ireland?
No. The MEES Regulations and PRS Exemptions Register apply to England and Wales only. Scotland has its own energy efficiency framework with different requirements and exemption rules. Northern Ireland operates separately. See our guides for Scottish landlords and Northern Ireland landlords.
What if my property is in a conservation area?
Conservation area status does not provide an EPC exemption. The heritage exemption under Regulation 5(1)(a) applied only to individually listed buildings, not to properties merely located within a conservation area. If your property is in a conservation area but not itself listed, standard EPC rules have always applied. However, if the conservation area restricts the improvements you can make (external wall insulation, window replacement), the third-party consent exemption may apply if planning consent is refused.
Can I register the same exemption twice in a row?
Yes. There is no limit on consecutive exemptions. If your property still cannot reach the minimum standard when your current exemption expires, you can register a new one immediately, provided you have fresh, current evidence. The five-year (or ten-year, under 2030 rules) clock resets with each new registration.
What happens if a council challenges my exemption?
Local authorities have the power to review and challenge exemption registrations. If a council determines that your exemption was registered incorrectly (wrong type, inadequate evidence, or false information), it can revoke the registration and issue a compliance notice. Failure to comply with the notice, or the underlying false registration, can result in financial penalties of up to £5,000 in total per property. Councils conduct proactive audits using the register rather than waiting for complaints, so a weak registration is not a safe place to sit.
Not sure whether your property qualifies for an exemption? Use the EPCGuide exemption checker to assess your situation, or check your current rating with the EPC predictor. For the full picture on the 2030 deadline, costs, and what to do now, see our complete guide to the EPC C deadline and our guide on the cost of improving your EPC rating.
This article was last updated on 5 September 2026. EPCGuide's analysis covers the full domestic EPC register for England and Wales: 27.6 million EPC certificates across 19.7 million homes. For methodology and interactive data, visit the EPCGuide Research Hub.