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EPC Exemptions for Landlords — Complete 2030 Guide

From 1 October 2030, ALL privately rented properties in England and Wales must meet a minimum EPC rating of C — this applies to all tenancies, not just new ones. While most properties can reach this standard, some face legitimate barriers. If your property genuinely cannot reach EPC C within the £10,000 cost cap, a legal exemption may apply.

At LandlordEPCs we identify, evidence, and register exemptions on your behalf — so you stay compliant without the paperwork. Our guide explains the 7 types of exemption available and how we assess which one applies to your property.

Most exemptions are valid for 5 years. Under the 2030 regulations, cost cap exemptions will last 10 years. Once an exemption expires, landlords must either improve the property to meet the standard or re-register if the same circumstances still apply.

Not every property can reach EPC C - and that's where exemptions matter Some properties face genuine barriers, including cost, building restrictions, consent issues, or unsuitable improvements. Our EPC exemption assessment helps identify whether your property may qualify and what evidence may be required.

1. High Cost Exemption

The High Cost Exemption applies where the total cost of reaching EPC C exceeds the £10,000 cost cap per property — the confirmed threshold under the 2030 MEES regulations. If even the cheapest recommended improvement would take total spend beyond £10,000 (including VAT), this exemption can be registered on the PRS Exemptions Register.

This exemption can only be used where no improvements are available within the cost cap. If lower-cost improvements are possible but the property still fails to reach EPC C after completing them, the correct route is instead the 'All Improvements Made' exemption.

Spending toward the cost cap can include works carried out from 1 October 2025 onwards — so improvements made now count toward the £10,000 limit.

2. Seven Year Payback Exemption (Non-domestic properties only)

For non-domestic (commercial) properties, landlords are normally required to let buildings with an EPC rating of E or above. However, an exemption may apply where the cost of the recommended improvements cannot be recovered through energy savings within a reasonable period. This is known as the 7-Year Payback Exemption.

In practical terms, if the expected energy bill savings over seven years are less than the cost of buying and installing the improvement, the measure fails the 7-year payback test and does not have to be installed.

This exemption only applies to non-domestic properties.

In summary, this exemption applies where energy efficiency improvements do not pay for themselves within seven years.

3. All Improvements Made Exemption

In some cases, a property cannot reach an EPC rating of C, even after all reasonable energy efficiency improvements have been carried out. This is where the All Improvements Made Exemption applies.

This exemption can be used where all "relevant energy efficiency improvements" have been completed, or where no such improvements are possible, and the property still remains below EPC C. It applies to both domestic and non-domestic properties.

In short, this exemption applies where everything that can reasonably be done has already been done, and we ensure the position is properly assessed, documented, and registered in line with current regulations.

4. Wall Insulation Exemption

A Wall Insulation Exemption recognises that some wall insulation measures may not be suitable for certain properties, even if recommended and funded. It applies to both domestic and non-domestic properties. The law acknowledges that forcing such measures could damage the building's fabric or structure.

The exemption applies to three types of wall insulation:

  • Cavity wall insulation
  • External wall insulation
  • Internal wall insulation (on external walls)

A recommended measure of this type does not count as a "relevant measure" if it could negatively affect the property.

In short, Regulation 24(2) allows landlords to legally avoid installing certain wall insulation measures when doing so would harm the building, provided there is qualified expert evidence. It's a way to balance energy efficiency requirements with property safety and preservation.

5. Third-Party Consent Exemption

Some energy efficiency improvements — such as external wall insulation or solar panels — may require third-party consent before installation. This could include:

  • Local authority planning consent
  • Mortgage lender approval
  • Superior landlord consent (if the landlord is a tenant)
  • Current tenant consent (depending on tenancy terms)

Landlords must provide evidence that consent was sought and either refused, or granted with unachievable conditions when registering this exemption.

Tenant-dependent exemption: If refusal is due to the current tenant, the exemption only lasts while that tenant remains in place; improvements must be made before a new tenancy.

6. Devaluation Exemption

In certain cases, installing recommended energy efficiency improvements can actually reduce the value of a property. Where this is the case, the Devaluation Exemption may apply.

This exemption can be used for both domestic and non-domestic properties. To qualify:

  • An independent surveyor, registered with the Royal Institution of Chartered Surveyors (RICS), must confirm that installing specific improvements would lower the property's market value by more than 5%.
  • The surveyor's report must clearly list all the energy efficiency measures that would cause this devaluation.

It's important to note that any recommended improvements not listed in the surveyor's report must still be installed, unless another exemption applies.

7. Recent Landlord Exemption

A "recent landlord" temporary exemption allows someone who has just become a landlord to have 6 months before needing to comply with minimum energy efficiency standards. This applies in situations such as inheriting a lease, taking over as guarantor, obtaining a lease by law or court order, or buying a property that is already tenanted. To register, the landlord must provide the date they became the landlord and explain the circumstances.

After 6 months, the property must meet the EPC C standard or another valid exemption must be registered.

Grandfather Rights — Why Acting Before 2029 Matters

From 1 October 2029, the current EPC methodology (RdSAP 10) will be replaced by the new Home Energy Model (HEM). This is one of the most important changes most landlords haven't heard about.

Properties that achieve EPC C under RdSAP 10 before October 2029 will have their rating grandfathered — meaning they are deemed compliant until their EPC certificate expires, even under the new rules.

Properties that wait may find that the same improvements cost more under HEM — and may still not reach C under the new methodology. The window to reach EPC C under the current, cheaper methodology is closing.

If your property cannot reach C under RdSAP 10, securing an exemption now under the current rules may also be the safer and cheaper route before HEM changes the criteria.

Check My Property — Free Read our full Grandfather Rights guide →

Need Help Identifying the Right Exemption?

Not sure which exemption applies to your property?

We assess your property, identify potential exemption routes, explain the evidence required, and can help you prepare the documentation needed for compliance

1. Free Property Check

Enter your postcode and we instantly pull your EPC data and identify whether an exemption may apply.

2. We Gather the Evidence

We assess which exemption applies, identify the required evidence, and guide you through exactly what's needed.

3. We Register It For You

We submit your exemption to the PRS Exemptions Register with full supporting documentation — you get a compliance certificate.

Frequently Asked Questions

EPC exemptions allow landlords to let a property that doesn’t meet minimum EPC standards when certain criteria apply, such as when improvements exceed cost caps or all relevant improvements have been made but the rating is still below minimum requirements.

A landlord can register an exemption if a property cannot realistically be improved to meet minimum EPC standards due to high costs, consent issues, structural limitations, or if all relevant improvements have been made but the rating remains low.

Most exemptions typically last up to five years. Certain temporary exemptions, such as recently becoming a landlord, may last up to six months.

Yes, exemptions must be registered on the Private Rented Sector Exemptions Register in order to be legally recognised and relied on by landlords.

Under the 2030 MEES regulations, landlords are expected to spend up to £10,000 per property to reach EPC C. If the property still cannot reach C after spending up to the cost cap, a cost cap exemption can be registered on the PRS Exemptions Register for 10 years. Spending from 1 October 2025 counts toward the cap.

No. EPC exemptions do not automatically transfer when a property changes ownership. The new landlord must either improve the property to meet the minimum standard or register their own exemption if one applies.

Under the proposed 2030 regulations, fines for non-compliance are intended to rise to up to £30,000 per property per breach — a significant increase from the current £5,000 maximum. Exemptions must be registered on the PRS Exemptions Register before letting to be legally recognised.

Grandfather rights refer to the provision that properties achieving EPC C under the current RdSAP 10 methodology before 1 October 2029 will be deemed compliant until their certificate expires — even after the new Home Energy Model (HEM) takes over. Acting before October 2029 to reach C or secure an exemption under the current rules may be significantly cheaper than waiting.

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