What are the criteria to get an EPC exemption?

The rule against renting out a home with an energy efficiency grade below E has a number of exemptions.

Once you have registered the exemption on the PRS Exemptions Register and your property fits the requirements for one of the exemptions, you will be entitled to rent it out.

Required information for all exemptions

• address for the building
• the kind of exception you’re requesting
• copy of the property’s current EPC

‘All relevant improvements made’ exemption

If the property’s EPC is still below E after improvements up to the cost cap (£3,500 incl. VAT) have been completed, or if no further improvements are possible, register this exemption.

This exclusion is valid for 5 years. When it does, you will have to attempt again to raise the property’s EPC rating to E. You may register a second exemption if it’s still not feasible.

You must submit the following extra details in order to register this exemption:

• If you chose to use a report created by a surveyor, for example, rather than your EPC report to decide which actions are appropriate for your property, you must submit a copy of that report.
• specifics, including the installation date, of all the suggested upgrades you made to the property (unless none were recommended)

‘High cost’ exemption

If no improvement can be made because it would cost more than £3,500 to install even the lowest recommended solution, register this exemption (including VAT).

This exclusion is valid for 5 years. When it does, you will have to attempt again to raise the property’s EPC rating to E. You may register a second exemption if it’s still not feasible.

You must submit the following extra details in order to register this exemption:

• Obtaining and implementing the lowest suggested measure would cost more than £3,500, as shown by three bids from licenced installers (including VAT)
• signed affirmation from you stating that you believe the amount exceeds £3,500 (including VAT)

Wall insulation exemption

If the following are the sole pertinent changes to your property, register for this exemption:

• wall cavity insulation
• wall insulation outside
• or insulation for interior walls (for external walls)

You have documented expert opinion demonstrating that these actions will adversely affect the property’s fabric or structure (or the building of which it is part).

This exclusion is valid for 5 years. When it does, you will have to attempt again to raise the property’s EPC rating to E. You may register a second exemption if it’s still not feasible.

You must submit the following extra details in order to register this exemption:

• a copy of a relevant expert’s written opinion saying that the property cannot be upgraded to an EPC E because the required wall insulation measure will negatively affect the property (or the building of which it is part)

Third-party consent exemption

Register this exemption if, despite your best efforts, you are unable to obtain, or the consent is granted subject to conditions you are not reasonably able to meet, the necessary approval for the improvements to your property from a third party, such as a tenant, superior landlord, mortgagee, freeholder, or planning department.

This exemption is valid for:

• 5 years
• or, in cases where there was a problem with tenant consent, until the present tenancy expires or is transferred to a new tenant    

In either scenario, you must try again to raise the property’s EPC rating after the exemption expires or apply for another exemption.

You must submit the following extra details in order to register this exemption:

• copies of any correspondence and/or pertinent documents (such as a letter from your tenant or a notification of a planning department decision) proving that consent for the suggested measure was necessary and sought, that consent was denied or granted with conditions you were not likely to be able to meet.

Property devaluation exemption

If you have proof that implementing energy-efficient changes to your property will reduce its value by more than 5%, you should register this exemption. You will require a report from an impartial surveyor in order to register this exemption. The surveyor requires:

• to be included as an appraiser on the Royal Institute of Chartered Surveyors (RICS) registry
• to warn that the installation of the necessary renovation measures will lower the building’s or the property’s market value by more than 5%

This exclusion is valid for 5 years. When it does, you will have to attempt again to raise the property’s EPC rating to E. You may register a second exemption if it’s still not feasible.

You must submit the following extra details in order to register this exemption:

• a copy of the independent RICS surveyor’s report demonstrating that implementing the suggested changes will result in a greater than 5% decrease in the value of the property

How to register an exemption

• Create a profile
• put the address of your house here.
• the kind of exemption you wish to register for in your statement
• submit all necessary documentation, including a copy of the property’s current EPC (the Register can accept pdf, png, jpg, jpeg, doc or docx files, with a maximum size of 4 MB per file)

Once the data has been entered, exemption information cannot be changed. Before submitting, make sure you have thoroughly verified everything.

Every exemption starts to take effect the moment you register it.

You can cancel an exemption if you upgrade an exempt property to E after registering it (or if you stop renting it out) by heading to your account’s “dashboard” page and choosing “View or change my exemptions.”