EPC Exemptions for Landlords: When You Can Legally Let Below EPC E

Last updated: March 2026 · Reviewed by HouseData editorial team · Back to all guides

Since April 2020, landlords in England and Wales must not let a property with an EPC rating of F or G. The rule applies to all tenancies — new and existing. If your property falls below the minimum EPC E threshold, you are in breach of the Minimum Energy Efficiency Standards (MEES) unless you hold a valid, registered exemption.

This guide explains every exemption category, what evidence you need, how to register on the PRS Exemptions Register, and the penalties if you get it wrong.

The five valid exemption categories

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 set out the circumstances in which a landlord can apply for an exemption. There are five main categories.

1. High cost exemption

This is the most commonly used exemption and it requires careful documentation. You must obtain at least three quotes from qualified installers for each recommended improvement. If no individual measure or combination of measures can bring the property to EPC E for £3,500 or less, and you have carried out all improvements that are possible within that cap, you can register the high cost exemption.

The £3,500 cap is a cumulative limit per property, not per measure. If you spend £2,000 on loft insulation and the next cheapest measure would cost £2,500, taking the total over £3,500, you can apply for the exemption once you have exhausted all sub-threshold improvements. You cannot simply get one quote and register — three quotes per measure are required.

Note that some improvement costs can be partly or fully offset by government grants such as ECO4 or the Great British Insulation Scheme. If a grant brings a measure within the £3,500 cap, the exemption may not apply. Check grant eligibility before assuming the cap is breached.

2. Third party consent refused

This exemption covers three types of third party:

• Tenant consent — if your tenant has explicitly refused to allow works, or has not responded to documented requests within a reasonable period
• Superior landlord or freeholder consent — relevant for leasehold properties where the lease requires the freeholder's permission for structural alterations
• Planning or listed building consent — if works would require planning permission or listed building consent and the authority has refused, or if the property is in a conservation area and consent cannot be obtained

You must document your attempts to obtain consent. For tenant consent, this means written requests, ideally sent by recorded post or email, and a record of the response (or lack of one). You cannot simply assume consent will be refused. The exemption lasts 5 years, or until the tenancy ends — whichever is sooner. Once the tenant leaves, you must attempt to carry out the works before letting to a new tenant.

3. Devaluation exemption

This is the most difficult exemption to obtain because the evidence threshold is high. An opinion from a non-specialist or a rough estimate is not sufficient. You need a formal valuation report from a RICS-registered chartered surveyor that:

• States the current market value of the property
• Identifies the specific improvement or improvements in question
• Gives an opinion on the post-improvement market value
• Confirms that the reduction exceeds 5%

In practice, this exemption is most relevant for properties where works such as external wall insulation would materially alter the appearance of the building, or where internal wall insulation would significantly reduce floor area in a smaller property. Listed buildings and properties in conservation areas are candidates, though planning constraints are usually better addressed via the third party consent route.

4. Newly let exemption

This exemption provides a 6-month grace period. It is intended to give a landlord time to assess the property, obtain quotes, and commission works, not to delay compliance indefinitely. After 6 months, the exemption expires and you must either have the property at EPC E or hold a different registered exemption.

The newly let exemption also applies when a property becomes subject to MEES for the first time — for example, if you convert a property to a rental or if a previously exempt property loses its exemption status. It does not apply if you are simply switching to a new tenant where the property was already required to meet EPC E under the previous tenancy.

5. Property being sold

This exemption is relatively narrow. The property must be actively marketed for sale — evidence such as a listing with an estate agent would be expected. If the sale falls through and the property remains let, the exemption no longer applies and you must revert to compliance or register a different exemption.

How to register on the PRS Exemptions Register

All exemptions must be registered at gov.uk before the tenancy begins or continues. Registration is free. You will need:

• The full address of the property
• Your EPC report reference number
• The exemption type you are registering
• Supporting evidence specific to that exemption type (quotes, surveyor reports, consent refusal letters, etc.)

Once registered, your exemption appears on the public register. Local authorities use this register to check compliance. Exemptions last 5 years (except the newly let exemption, which lasts 6 months). You will need to re-register before the exemption expires if the situation has not changed and you still qualify.

Penalties for non-compliance and false exemptions

If you let a property below EPC E without a valid registered exemption, the local authority can issue a financial penalty. Penalties are scaled according to how long the non-compliance has been in place:

• Less than 3 months of non-compliance: up to £10,000
• 3 months or more: up to £30,000

Falsely registering an exemption — for example, using fabricated quotes or misrepresenting a surveyor's report — carries a separate penalty of up to £5,000, in addition to any penalty for the underlying MEES breach. Providing false information to a local authority in the course of an investigation is also a criminal offence.

Exemptions and the proposed 2030 EPC C requirement

The government has consulted on raising the MEES threshold to EPC C by 2030 (proposed, not yet legislated). If and when these changes are confirmed, the exemption framework is expected to be updated alongside them. The same broad categories — high cost, third party consent, devaluation — are likely to remain, but the cost cap and evidence requirements may change.

If you currently hold an exemption under the EPC E rules and the threshold rises to EPC C, you will not automatically be exempt from the new requirement. You would need to reassess your position and register a new exemption if applicable. We will update this guide when the 2030 regulations are confirmed.