In the push for greener homes, the UK government has made it illegal to rent out properties with an EPC rating below E. But what if your building can’t be upgraded? What if you’ve done all you can afford?
That’s where EPC exemptions come in — legal carve-outs for properties that cannot or should not be brought up to standard.
But navigating these exemptions is not simple. There are strict rules, hidden caveats, and serious consequences if you get it wrong.
Let’s decode the MEES exemption system — and expose the loopholes, legal grey zones, and potential traps.
🧾 What Are EPC Exemptions?
EPC exemptions allow landlords to continue letting a substandard property (rated F or G) under specific conditions defined by the Minimum Energy Efficiency Standards (MEES) regulations.
But these are not automatic. You must:
Qualify for an exemption
Register it on the government’s MEES Exemption Register
Renew or review it after a certain period (typically 5 years)
✅ Main Types of EPC Exemptions (with Real-World Implications)
Here are the key exemptions — along with what they really mean in practice:
1. 🔧 “All Improvements Made” Exemption
Condition: You’ve made all possible cost-effective improvements but the property still doesn’t reach E.
Must follow the Golden Rule (cost-effective via Green Deal-style financing or <7-year payback).
All relevant improvements must be installed and documented.
💡 Pitfall: If you skip even one viable upgrade (like loft insulation), this exemption can be denied.
2. 🧱 “Wall Insulation Exemption”
Condition: Wall insulation (solid or cavity) would damage the building’s fabric or structure.
Must have expert evidence (e.g., surveyor’s report).
Applies often to heritage buildings or those with damp risks.
🪙 Grey zone: EPCs still penalise uninsulated walls, even if they’re exempt. Your rating may stay low despite no legal duty to upgrade.
3. 💷 “High Cost Exemption”
Condition: No improvements under £3,500 (incl. VAT) can raise the EPC to E.
You must get three installer quotes and an EPC recommendation report.
Applies if upgrades would be disproportionately expensive.
🔍 Loophole abuse: Some landlords use inflated quotes to “prove” upgrades exceed cost cap — a risky move if audited.
4. 🧑🔧 “Third Party Consent” Exemption
Condition: Necessary upgrades require consent (e.g., from tenant, freeholder, planning authority) and were refused.
Common in leasehold flats, conservation areas, or buildings with restrictive covenants.
⚠️ Trap: You must prove you requested consent and were denied — silence or delay isn’t enough.
5. 🕰️ “Recently Became a Landlord” Exemption
Condition: You recently acquired the property and need time to comply.
Valid for 6 months only, starting from acquisition or new tenancy.
📝 Reminder: This is not a permanent exemption — just breathing space. After 6 months, you must comply or register another exemption.
🔒 Are EPC Exemptions Risk-Free? Not Even Close
Here’s what most landlords don’t realise:
| Risk | Explanation |
|---|---|
| Public register | Your exemption is listed online — visible to local authorities and tenants. |
| Time-limited | Most exemptions last 5 years (or 6 months for “new landlords”). No permanent free pass. |
| Not transferrable | Exemptions don’t carry over if you sell — the new landlord must reapply. |
| Audit exposure | Councils can investigate exemption claims. If found invalid, fines up to £5,000 per property may apply. |
⚙️ The Grey Zone: Where Legal Meets Ambiguous
Even within the rules, uncertainties remain, including:
What counts as “all relevant improvements”? Must you install everything suggested on the EPC?
How is “consent” refusal defined? Is no response the same as a no?
What if prices change? A £3,200 quote in 2023 might be £4,000 in 2025 — is your exemption still valid?
🧠 The rules aren’t always interpreted consistently, especially across different local authorities.
🚫 The Loopholes (and Why They’re Risky to Use)
While some landlords attempt to “game” the system, be warned:
Fake quotes or exaggerated costs can backfire during audits.
Not attempting to get consent is a common reason for exemption rejections.
Using listed building status as a blanket excuse may not hold — you still need proof that specific works are damaging or refused.
🧭 Best Practices for Legitimate Exemption Use
If you genuinely can’t upgrade:
✅ Keep documentation – quotes, reports, emails, surveys
📤 Register the exemption properly – don’t skip the MEES Register
🔁 Set reminders for renewal – especially after 5 years
🧑⚖️ Consult a compliance expert or solicitor – especially if your case involves planning law or leasehold structures
🏁 Conclusion: Exemption ≠ Escape
EPC exemptions offer a legal way to stay compliant, but they’re not a loophole you can exploit lightly.
They come with strict rules, expiry dates, and a high risk of fines or reputational damage if misused.
So if you’re relying on an exemption — treat it like a legal contract, not a get-out-of-jail-free card.
The EPC graph is just the beginning. When you know how to read between the lines, your report becomes more than a score—it becomes a blueprint for saving energy, reducing emissions, and increasing property value.
Ready to unlock the full story of your EPC?
📅 Book your expert EPC assessment today at EPCrate.co.uk.
