If you rent out a listed building, you may have been told, or assumed, that you're completely exempt from EPC requirements. That belief is surprisingly common. It's also wrong, and it's about to become even harder to sustain.
The government's January 2026 partial response to the Energy Performance of Buildings (EPB) reforms consultation proposed removing the existing EPC exemption for heritage properties. If that proposal becomes law, landlords of listed buildings will be required to produce a valid EPC when their property is marketed, sold, or let. It is not law yet, and the exemption as currently drafted was never a blanket one.
Here's what changes, when it applies, and what you can realistically do about it.
The Myth Most Listed Building Landlords Believe
Ask most landlords of listed properties whether they need an EPC and the answer you'll get is: "No, I'm listed, I'm exempt."
It's a myth that's been perpetuated by estate agents, well-meaning EPC assessors, and even some local authorities. The reality has always had conditions attached.
What the current law actually says
Under Regulation 5(1)(a) of the Energy Performance of Buildings Regulations, buildings "officially protected as part of a designated environment or because of their special architectural or historical merit" are not required to have an EPC, insofar as compliance with certain minimum energy performance requirements would unacceptably alter their character or appearance.
That conditional phrase matters enormously. The exemption was never a blanket pass. It was a narrow carve-out for situations where the specific upgrades required to meet minimum standards would genuinely harm the building. If the improvements wouldn't cause harm, the exemption didn't apply.
In practice, the grey area was large enough that many landlords never got an EPC at all. The reform closes that grey area.
What the January 2026 Reform Changes
The government's consultation response, published on 21 January 2026, sets the direction of travel: it proposes removing the heritage exemption entirely. If legislated, listed buildings would be treated like any other rental property for EPC purposes. Note that even under the rules in force there is no automatic exemption from the requirement to obtain a certificate: the carve-out only bites where the required improvements would unacceptably alter the building's character or appearance.
Multiple respondents to the consultation agreed the change was positive. The government noted that removing the exemption would "provide greater clarity, and provide landlords and consumers with better information on energy performance."
When does the EPC requirement kick in?
The government's own impact assessment is clear that the EPC requirement for listed buildings would trigger on transaction, when the property is marketed, sold, or let, not immediately across all existing stock. This matters practically. If your listed property is already let on a long-term tenancy and you don't re-let, market, or sell it in the near term, you won't face an immediate EPC demand.
If you're about to re-let, renew a tenancy (in some interpretations), or sell, you would need a valid EPC once the change is legislated. Getting ahead of it now, before the proposed 2030 deadline adds pressure, is advisable.
What about conservation area properties?
Conservation areas are different from listed buildings. Properties in a conservation area have never had an EPC exemption, the Regulation 5(1)(a) exemption applied only to individually listed buildings and designated structures. If your property is in a conservation area but not itself listed, the standard EPC rules have always applied.
Can You Still Improve a Listed Building's EPC Rating?
Yes, and more than most landlords realise. The widespread assumption is that "listed" means "can't touch it." In practice, many energy efficiency improvements don't require Listed Building Consent at all.
Improvements that typically don't need listed building consent
These measures are generally permitted without formal consent and can meaningfully improve an EPC rating:
- Draught-proofing, sealing gaps around doors, windows, and floorboards. One of the highest-impact low-cost measures available.
- Loft insulation, adding insulation between and over joists in the roof space, if the loft is accessible. Doesn't affect the building fabric structurally.
- Heating controls and smart thermostats, upgrading a programmer, adding TRVs, or fitting a smart thermostat doesn't touch listed elements.
- LED lighting, replacing light fittings with LEDs requires no consent.
- Internal wall insulation, insulating from the inside (where no external alteration is visible) may not require consent, though you should check with your local planning authority. Unlike external cladding, it leaves the character of the building intact.
- Modern double-glazing (in some cases), secondary glazing fitted inside the original windows is typically acceptable without consent. Full replacement is more complex.
For Victorian terrace landlords and Edwardian houses that are listed, internal draught-proofing and heating controls alone can often move an EPC up one band.
What requires consent, and how to apply
External work that alters the character or appearance of a listed building typically requires Listed Building Consent from the local planning authority. This includes:
- External cladding or insulation systems
- Replacement windows that change the profile or appearance
- External heat pump units on visible elevations
- Roof alterations
The process involves submitting an application to the local planning authority, who may request a heritage impact assessment. Historic England provides guidance on how to approach energy upgrades sympathetically, it's worth consulting their resources early in the process.
The key point: consent isn't always refused. Many councils actively support sensitive energy upgrades to listed buildings. Apply, document the response, and build that paper trail. It matters for MEES.
The MEES Third-Party Consent Exemption: Your Backstop
Even if the EPC exemption is removed, listed building landlords retain a critical protection within the MEES (Minimum Energy Efficiency Standards) framework, which applies in England and Wales only.
Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, landlords can register a third-party consent exemption on the PRS Exemptions Register if:
- Specific improvements are required to reach EPC E, the minimum in force, or EPC C under the proposed 2030 standard
- The improvements require consent from a third party (in this case, the local planning authority)
- That consent has been sought and refused, or the improvements would genuinely require unacceptable alteration
This exemption doesn't mean you can ignore the MEES regulations. You must demonstrate that you've actively tried to make improvements, sought the required consent, and been refused or blocked. It's a last resort, not a first port of call.
To register a valid third-party consent exemption you'll need:
- Evidence of the improvement measures identified in your EPC
- Documentation of your consent application (planning application reference, correspondence)
- Confirmation that consent was refused or that the works would unacceptably harm listed elements
- A heritage impact assessment where relevant
This exemption is registered on the national PRS Exemptions Register and must be renewed every five years. The high-cost exemption is a separate protection: if qualifying improvements exceed the cost cap and the property still can't reach the minimum, you can register on that ground instead. The cap in force is £3,500 per property including VAT. The government has proposed raising it to £10,000 alongside the band C standard, but that is not law yet.
What Landlords Should Do Now
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Get an EPC if you don't have one. A current EPC gives you a baseline and identifies which improvements are recommended. Without it, you're operating blind. Many listed building landlords haven't had one for years.
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Check which measures on your EPC report don't require consent. Start with draught-proofing, heating controls, loft insulation, and LED lighting. These are low-cost, low-disruption, and don't touch listed elements.
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Consult your local planning authority early. Ask what they'd support. Many are more accommodating than landlords expect, especially for internal measures.
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Document everything. If consent is refused, that documentation supports your third-party consent exemption. Start the paper trail now, not in 2029.
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Cross-reference with the what counts toward the cost cap rules. Under the government's proposal, spending on qualifying improvements from October 2025 would count towards a £10,000 limit. That counting rule is not law yet, but keeping the receipts costs nothing.
FAQ
Do I need an EPC for my listed building right now?
Possibly, but only on narrow grounds. The Regulation 5(1)(a) exemption applies where meeting minimum energy performance requirements would unacceptably alter the building's character or appearance, not simply because the building is listed. The January 2026 response proposes removing it altogether. If you're re-letting or marketing the property in 2026 or later, obtaining an EPC now beats relying on a conditional exemption the government intends to withdraw.
What if improvements would genuinely damage the building's character?
That's exactly what the MEES third-party consent exemption exists for. If listed building consent is refused for specific improvements, you can register an exemption on the PRS register. You need documented evidence of the refusal, not just an assumption that consent won't be granted.
Does the cost cap apply to listed buildings?
Yes. The MEES cost cap applies to listed buildings the same as any other rental property in England and Wales. The cap in force is £3,500 including VAT; the £10,000 figure is a government proposal that has not been legislated. For pre-1919 properties where solid wall insulation may be the only structural route, the cap often provides meaningful protection.
Are Grade I and Grade II buildings treated differently from Grade II?*
For EPC purposes, the proposed reform treats all listed buildings the same, the distinction is not in the EPC requirement but in what planning authorities will and won't permit when you seek consent for improvements. Grade I and II* properties have greater scrutiny at planning, which typically means fewer structural interventions are approved, making the third-party consent exemption route more likely to be needed.
Not sure what your EPC compliance position looks like? Use the MEES compliance checklist to map your obligations, or check our cost cap exemptions guide if you're concerned about upgrade costs exceeding the cap. The proposed listed building exemption removal is one of seven changes from the January 2026 EPC consultation response.