From 2030, all newly tenanted rental properties must meet a minimum EPC rating of C. While most properties can reach this standard, some may face legitimate barriers.
Our EPC Exemptions Guide explains:
Exemptions are valid for 5 years, giving landlords time to either improve the property’s energy efficiency or maintain compliance under a valid exemption. Once the exemption period ends, it can be re-registered if no changes have been made.
At LandlordEPCs, we assess each property individually, identify when exemptions apply, and handle the full registration process for you — supported by professional reports and clear guidance.
High cost Exemption can be appied is where the cost of improving the property is too high. If even the cheapest improvement recommended on the EPC Audit cost more than £3,500 (including VAT), then this exemption can be used.
This exemption can only be used where no improvements are available for £3,500 (including VAT) or less. If lower-cost improvements are possible but the property still fails to reach EPC C, we would instead advise registering the ‘All Improvements Made’ exemption, where all relevant measures have been completed but the property remains below standard.
IMPORTANT NOTE: In 2026 the government is proposing changing the High Cost Exemption freshold from £3500 (inc VAT) to a £10,000 cost cap per property for upgrades to reach the higher EPC C standard , with a potential £10,000 "affordability exemption" for low-rent/council tax areas.
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
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.
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:
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.
Some energy efficiency improvements—such as external wall insulation or solar panels—may require third-party consent before installation. This could include:
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.
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:
It’s important to note that any recommended improvements not listed in the surveyor’s report must still be installed, unless another exemption applies.
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.
Register your rental property exemption on the official PRS register.
Go to RegisterCheck the register for any penalty notices issued for non-compliance.
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