EPC exemptions allow landlords to continue letting properties that do not meet the Minimum Energy Efficiency Standards (MEES) when specific conditions are met. The exemption system has existed since 2018, but the Renters' Rights Act 2025 changes the context in which those exemptions operate, without rewriting the regulations themselves.
The result is that some exemptions that worked as a practical holding position under the old regime become riskier or less effective under the new one. If you have a registered exemption, or if you are about to register one, this guide explains what has changed and what to check.
For the Renters' Rights Act changes arriving on 1 May 2026 and your EPC checklist, see our Renters' Rights Act EPC action plan.
The Current Exemption System: How It Works
The MEES Regulations, formally the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, require all privately rented residential properties in England and Wales to hold a minimum EPC rating of Band E. A Band C requirement for all tenancies is expected to apply from 1 October 2030.
Where a property cannot meet the minimum standard, landlords may register an exemption on the government's PRS Exemptions Register at prsregister.beis.gov.uk. The exemption must be based on one of the recognised grounds under the Regulations.
The Main Exemption Types
All qualifying improvements made. The landlord has installed all qualifying MEES improvement measures up to the relevant cost cap, but the property still does not meet the required band. This exemption lasts five years.
Third-party consent refused. A required improvement cannot be carried out because a third party, such as a freeholder, mortgagee, or the tenant, has refused consent or imposed unreasonable conditions. This exemption lasts five years for freeholder and mortgagee refusals.
Tenant consent refused (specific rule). Where the refusing third party is the current tenant, the exemption lasts only for as long as that specific tenant remains in residence. This is the most commonly misunderstood rule in the MEES exemption system.
High cost exemption. Where the cheapest qualifying improvement would cost more than the relevant cost cap, the landlord can register a high cost (or "unviable") exemption. This lasts five years.
Recently let property. A temporary six-month exemption available in limited circumstances, including where a property was acquired unexpectedly (via inheritance or similar) and the landlord needs time to bring it into compliance.
Listed building exemption. Where compliance would require alterations that would unacceptably alter the building's character or appearance, and listed building or planning consent has been refused. This lasts five years.
For step-by-step registration on the PRS portal, see our MEES exemption register guide.
How the Renters' Rights Act Changes the Exemption Picture
The MEES Regulations themselves are not amended by the Renters' Rights Act. But the Act changes two things that directly affect how exemptions work in practice:
1. Section 21 abolition removes the exit route from the tenant consent exemption. 2. New local authority investigatory powers increase the risk of exemption challenge.
The Tenant Consent Exemption: Now Much More Consequential
Under the old regime, if your tenant refused EPC improvement works and you registered the consent exemption, Section 21 was a practical backstop. When the tenancy ended, whether through S21, voluntary departure, or otherwise, you completed the improvements in the void period and re-let at the higher rating. The exemption was a holding position.
From 1 May 2026, Section 21 is abolished. There is no Section 8 ground for possession to carry out EPC works. The tenant consent exemption no longer bridges a gap; it becomes a permanent deferral for as long as the tenant remains in the property.
The critical rule that compounds this: the tenant consent exemption expires automatically the moment the refusing tenant vacates. There is no grace period. If your tenant gives two months' notice, you need to commission and complete the qualifying improvements during that notice period or in the void, before any new tenancy begins.
Landlords who forget this rule and re-let immediately after the refusing tenant leaves are in breach from the date of the new letting. The penalties for MEES non-compliance are up to £5,000 per property, plus potential rent repayment orders from the new tenant.
For the complete breakdown of how the tenant consent exemption interacts with Section 21 abolition, see our Section 21 abolition and EPC guide.
The Five-Year Exemption: Expiry Risk Under Periodic Tenancy
Standard five-year exemptions, for the all-improvements-made exemption, freeholder or mortgagee third-party consent, and high cost exemptions, are not affected in their duration by the Renters' Rights Act. They still last five years from the date of registration.
What changes is the planning context. Under the old fixed-term regime, many landlords mentally tied their exemption expiry to tenancy renewals. Fixed terms gave natural intervention points at which to refresh compliance documents, commission new EPC assessments, and re-register exemptions.
Under periodic tenancy, there are no natural renewal points. A tenant can remain on rolling monthly terms indefinitely. An exemption that expires during a long-term periodic tenancy means the landlord is back in breach from the expiry date, with no imminent tenancy event to use as a management trigger.
Action required: Check your exemption expiry dates now. If any exemption expires within the next 12 months, begin the renewal process. If the exemption is an all-improvements-made exemption, commission a new EPC assessment and a fresh assessment of qualifying improvements before the expiry date. Conditions and technology change; the new assessment may identify further qualifying measures that have become cost-effective or available since the original exemption was registered.
The Cost Cap Exemption: What the Figures Mean
The cost cap exemption applies where a landlord has spent up to the relevant cost cap on MEES improvements and the property still does not meet the required band. The cap figure varies depending on which target band applies.
The Current Cost Cap (Band E, MEES 2018)
Under the current regime, the cost cap for the Band E minimum standard is £3,500 including VAT. If a landlord has spent £3,500 on qualifying improvements recommended in the EPC report and the property remains below Band E, they can register the all-improvements-made exemption.
This figure has not changed since 2018. Given construction cost inflation over that period, £3,500 buys significantly less in 2026 than it did at the start of the regime.
The Proposed Cost Cap for the 2030 Deadline
For the Band C deadline applying from 1 October 2030, the government has consulted on raising the cost cap to £10,000 including VAT (rising to £15,000 for higher-cost properties in certain circumstances). This higher cap has not yet been confirmed in final regulations.
The effect of a higher cap is significant: landlords who reached the current £3,500 cap and registered an exemption may find that the same property has further qualifying improvements available within the new £10,000 threshold. An exemption valid under the current rules may not be registerable under the new rules if additional works are now required and affordable within the higher cap.
For full detail on the proposed £10,000 cost cap and what it means for upgrade planning, see our guide on EPC improvements and the £10,000 cost cap.
What "All Qualifying Improvements" Means in Practice
The "all qualifying improvements made" exemption requires the landlord to have installed every improvement that: (a) appears as a recommendation in the property's EPC report, and (b) is technically feasible, and (c) falls within the cost cap.
Cherry-picking cheaper measures and stopping before the cap is reached does not support this exemption. Landlords who installed loft insulation but not the recommended cavity wall insulation because they did not want the disruption cannot validly register this exemption unless the wall insulation would have pushed the total cost above the cap or was technically infeasible.
When a new EPC is commissioned, new recommendations may appear. If they are qualifying measures and their cost falls within the cap, you must carry them out or lose the exemption basis. Get a new EPC assessment before your existing exemption expires to understand what the revised recommendation list looks like.
If Your EPC Exemption Expires: What to Do
Exemption expiry puts you in breach from the expiry date. Do not wait for enforcement action to trigger a response. Work through this checklist:
Six months before expiry:
- Commission a new EPC assessment
- Review the updated EPC recommendations
- Obtain contractor quotes for any new qualifying measures
- Determine whether a new exemption type applies, or whether compliance is now achievable
Three months before expiry:
- Complete any qualifying improvement works identified in the new assessment
- If the property can now reach the required band, do so and let the exemption lapse without renewal
- If works cannot achieve the required band: register the appropriate new exemption on the PRS Exemptions Register before the old one expires
On the expiry date:
- The old exemption ceases to be effective
- If you have not registered a new exemption and the property is still below standard, you are in breach
- Register a new exemption immediately if you are still entitled to one
For the practical steps to register, including what documents to upload for each exemption type, see our MEES exemption register guide.
How New Council Powers Increase Exemption Challenge Risk
The Renters' Rights Act introduced new local authority investigatory powers on 27 December 2025. Councils can now proactively audit rental properties for compliance, cross-reference ownership data with EPC records, and demand compliance documentation without a tenant complaint.
Exemptions on the publicly searchable PRS Exemptions Register are visible to council enforcement officers. A council reviewing exemptions in their area may identify:
- Exemptions registered without adequate supporting evidence
- Tenant consent exemptions where the original refusing tenant has since vacated (verified via tenancy records)
- Exemptions that have expired but where the landlord is still letting
Any of these may prompt an investigation. The result is a compliance notice and a potential penalty of up to £5,000. The broader tribunal exposure, including rent repayment orders from tenants, is covered in our EPC tribunal appeals guide.
Frequently Asked Questions
Does the Renters' Rights Act change the length of a five-year exemption?
No. The Renters' Rights Act does not amend the MEES Regulations. Five-year exemptions still last five years from registration. What changes is the enforcement risk during that period (higher due to new council powers) and the planning context (no tenancy breaks under periodic tenancy to use as management triggers).
My tenant consent exemption was registered two years ago. Is it still valid?
It depends on whether the refusing tenant is still in residence. If the same tenant is in the property, the exemption is valid for the duration of their tenancy. If that tenant has left and you have re-let to someone else, the exemption expired on the day the refusing tenant vacated. You may have been in breach since that date. Take immediate legal advice and commission a new EPC assessment.
I have a high-cost exemption based on the £3,500 cap. Will the proposed £10,000 cap affect it?
Not until the higher cap applies, which is anticipated to be the Band C 2030 deadline under new MEES regulations. Your current exemption, registered under the £3,500 cap regime, remains valid for five years from registration. However, when the 2030 deadline regulations are confirmed and the higher cap applies, you may need to carry out further works within the higher threshold before a new exemption can be registered for Band C compliance.
Can I register a new exemption before my current one expires?
Yes. Registering a new exemption before expiry of the current one ensures continuous coverage. Upload the updated EPC, new contractor assessments, and any relevant supporting evidence. The new exemption will apply from its registration date; the old one will simply lapse.
What happens if my exemption is challenged and invalidated?
If a local authority investigates and invalidates your exemption, you are treated as having been in breach from the date the exemption is found to be invalid (or from the date it expired, if that is the issue). A compliance notice follows, then a penalty notice of up to £5,000. Simultaneously, any tenant may apply for a rent repayment order for up to 12 months of rent paid during the breach period. Act immediately to either achieve compliance or register a valid replacement exemption.
EPC exemptions are not fire-and-forget. They require active management: expiry tracking, re-registration before the deadline, and documentary hygiene that can withstand council scrutiny. The Renters' Rights Act has raised the stakes for getting this wrong.
Use our exemption checker tool to see which exemption may apply to your property, or look up your current EPC rating to see where you stand before planning your next steps.
Sources: Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 | Renters' Rights Act 2025 | gov.uk PRS Exemptions Guidance (May 2025) | gov.uk Domestic Private Rented Property MEES Landlord Guidance
This article provides general guidance only and does not constitute legal advice. Seek specialist landlord legal advice for your specific circumstances.