EPC Exemptions and Their Effect on Energy Efficiency in the UK Private Rented Sector
Summary:
A House of Lords peer has questioned the government on how exemptions to Energy Performance Certificate (EPC) requirements may be hindering energy efficiency improvements in the private rented sector (PRS). This inquiry comes amid government plans mandating all PRS properties to meet EPC C standards by 2030, raising concerns about the impact of various exemptions on landlords’ ability to comply.
SEO BLOCK
SEO Focus Keyword: EPC exemptions private rented sector
SEO Meta Title: Impact of EPC exemptions on private rented sector energy standards
SEO Meta Description: A peer questions how EPC exemptions affect energy efficiency progress in the UK private rented sector amid new EPC C targets for landlords.
House of Lords Peer Raises Concerns Over EPC Exemptions in PRS
A peer in the House of Lords, Lord Carrington, has formally asked the government to clarify whether exemptions to Energy Performance Certificate (EPC) regulations are slowing progress in improving energy efficiency within the private rented sector (PRS). His written question specifically addressed exemptions related to leaseholder and third-party consent, which can limit landlords’ ability to carry out necessary energy-saving measures.
This inquiry coincides with the government’s announcement that all homes in the PRS will be required to meet EPC C standards by 2030, a key part of the Warm Homes Plan aimed at reducing carbon emissions and energy costs.
Details of EPC Exemptions and Government Response
Lord Carrington’s question asked: “What assessment they have made of the impact of minimum energy efficiency standards exemptions relating to leaseholder or third-party consent on progress towards improving energy efficiency in the private rented sector.”
In response, Lord Whitehead declined to provide a direct answer but referred to the government’s impact assessment published alongside the consultation response on improving energy performance in privately rented homes. This document outlines how various exemptions are treated in the government’s modelling of the PRS Minimum Energy Efficiency Standards (MEES).
The impact assessment categorises exemptions as follows:
| Exemption | Treatment in Modelling |
|---|---|
| High-Cost exemption | Modelled: Properties are not upgraded if the cheapest improvement exceeds the cost cap. |
| All Relevant Improvements Made exemption | Modelled: No improvements are made if no relevant measures are available. |
| Cost Cap exemption | Modelled: Upgrades stop once the cost cap is reached, even if EPC C is not met. |
| Property Value Adjustment exemption (affordability exemption) | Not modelled: Applies to properties valued below £100,000 with a cost cap at 10% of value; modelling lacks property price data. |
| Solid Wall Insulation (SWI) exemption | Modelled: Assumes all eligible landlords take this exemption; SWI not included in modelling results. |
| Negative Impacts exemption | Not modelled: Cases where measures negatively affect property value or condition are excluded. |
| Third-Party Consent exemption | Partially modelled: Tenant refusals at 10% accounted for; refusals from freeholders or local authorities not included. |
| New landlord exemption | Not modelled: Applies for six months after property transfer; considered to have minimal effect on overall modelling. |
Implications of the Cost Cap for Landlords
Under the government’s Warm Homes Plan, private landlords will have the option to meet EPC C standards using either the smart or heat metrics. Importantly, the maximum amount landlords are expected to invest in energy efficiency improvements will be reduced from £15,000 to £10,000.
The cost cap will be adjusted downward if £10,000 represents 10% or more of the property’s value, effectively limiting expenditure on lower-valued properties. Additionally, any energy efficiency work carried out since October 2025 will count towards this cap.
To support landlords, the government plans to offer a range of financing options, including grants through the Boiler Upgrade Scheme (BUS).
What This Means for UK Landlords
Landlords in the private rented sector should be aware that while the government aims to raise energy efficiency standards to EPC C by 2030, various exemptions may affect the feasibility and timing of required upgrades. The partial modelling of third-party consent exemptions, for example, suggests that refusals from freeholders or local authorities could pose unquantified barriers.
The lowered cost cap means landlords must carefully plan investments, especially for properties with lower market values. However, government grants and finance schemes may help mitigate upfront costs.
Understanding the scope and limitations of EPC exemptions is crucial for landlords to ensure compliance and avoid penalties as the 2030 deadline approaches.
Suggested internal link anchors
– Energy Performance Certificate (EPC) requirements
– Private rented sector energy standards
– Minimum Energy Efficiency Standards (MEES)
– EPC C compliance deadline
– Landlord cost cap for energy improvements
– Boiler Upgrade Scheme grants
– Third-party consent exemptions
– Leaseholder consent for EPC works
– Solid Wall Insulation exemption
– Property value adjustment exemption
TLA update
TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
The Landlord Association (TLA)