Energy Performance Certificate – EPC

Main Categories for Exemptions

Under the MEES, properties must be at least EPC Band E to be legally rented out, unless valid exemptions apply. These exemptions must be registered on the PRS Exemption Register and typically last 5 years, though some may end sooner. Guidance on PRS exemptions and Exemptions Register evidence requirements – GOV.UK

‘High Cost’ Exemption

A landlord can claim a ‘high cost’ exemption if the cheapest recommended energy improvement costs over £3,500 (inc. VAT). They must submit three installer quotes and confirm the cost exceeds the limit. This exemption lasts 5 years and applies only if no improvements can be made within the £3,500 cap. 

‘7 Year Payback’ Exemption

For non-domestic properties, an exemption applies if an improvement fails the 7-year payback test, where energy savings over 7 years are less than the cost. Landlords must submit three quotes, a statement, and cost calculations. The exemption lasts 5 years. 

‘All Improvements Made’ Exemption

If all possible energy improvements have been made and the property is still below EPC E, a 5-year exemption can be registered. This applies to domestic and non-domestic properties and must be supported by an EPC or relevant report. 

‘Wall Insulation’ Exemption

A wall insulation exemption applies if cavity, internal or external wall insulation is not suitable due to potential harm to the building’s structure. The landlord must provide written advice from a qualified expert confirming this. This applies to both domestic and non-domestic properties. Once registered, the exemption lasts 5 years. 

‘Consent’ Exemption

A third-party consent exemption applies if an energy improvement, like wall insulation or solar panels, requires consent (e.g. from a tenant, superior landlord, or planning authority) and that consent is refused or comes with conditions the landlord can’t meet. The landlord must upload proof of the refusal. The exemption lasts 5 years, except where consent is denied by a current tenant, in that case, it lasts only until the tenant leaves. 

‘Devaluation’ Exemption

A property devaluation exemption applies if a RICS-registered surveyor confirms that installing certain energy improvements would reduce the property’s value by more than 5%. The landlord must upload the surveyor’s report when registering. The exemption lasts 5 years, after which efforts to improve the EPC rating must resume. 

‘New Landlord’ Exemption

A temporary exemption of 6 months applies when someone recently becomes a landlord in certain situations, such as inheriting a lease, acting as a guarantor, or purchasing a property with an existing tenancy. This gives time to comply wit the MEES rules. To register, the landlord must provide the date they became a landlord and a brief explanation of the circumstances. After 6 months, they must improve the EPC to at least BAND E or register another exemption.