Energy Performance Certificate Exemptions

At Green Earth Energy Improvements, we can help landlords to get an EPC exemption for their property if it meets certain conditions. Under current legislation all domestic properties that are rented out must have an EPC rating of E or better. For landlords with older properties achieving this rating can be incredibly difficult and may not even be possible. That’s where the team at Green Earth can help.

We specialise in helping landlords to improve the energy efficiency of their properties as well as apply for exemptions if it meets certain conditions. Some of the applicable exemptions include:

High-cost exemption

This applies to domestic properties with landlords able to apply for an exemption if the cost to implement the cheapest recommended improvement exceeds £3500 including VAT. As part of the application process landlords must register the exemption on the PR Exemptions Register and upload 3 quotes from different providers. The total spend cap for the new regulations proposed are still to be defined by the government, but it’s understood that it could be as much as £10,000 including VAT.

All improvements made exemption

The all improvements made exemption applies when a landlord has made all relevant energy improvement measures or where no further changes can be made, and the property remains below an EPC rating of E. This exemption can also be applied if the landlord has spent up to or over £3500 including VAT on making energy efficiency improvements to their property and it remains under the required rating.

Wall insulation exemption

This exemption applies to properties where adding wall insulation is not suitable as it would cause damage to the fabric or structure of the building. The types of insulation included are cavity wall insulation, external wall insulation systems, and internal wall insulation systems. The wall insulation exemption is for domestic and commercial properties.

Devaluation exemption

The devaluation exemption can be applied when an independent RICS surveyor advises that the installation of a recommended energy improvement measure will reduce the market value of the property, or the building that the property is part of, by more than 5%. This could include external insulation or solar panels which would harm the kerb appeal of the property.

Consent exemption

If you need consent from a third party such as a local authority, tenants, mortgage lender or higher up landlords then you may be able to apply for a consent exemption. This applies to both commercial and domestic properties and lasts for a period up to five years.

New landlord exemption

A temporary exemption, this covers landlords who have suddenly become a landlord due to certain circumstances. Exemptions will last for a period of 6 months from the date that the owner becomes a landlord under the following circumstances:

  • the grant of a lease due to a contractual obligation (this is intended to cover a situation where a contract was entered into on a contingent basis, regardless of whether it was entered into before or after the Regulations came into force)
  • where the tenant becomes insolvent and the landlord has been the tenant’s guarantor (in this situation, the tenant’s guarantor becomes a landlord when taking over the lease)
  • the landlord has been a guarantor, or a former tenant, who has exercised the right to obtain an overriding lease of a property under section 19 of the Landlord and Tenant (Covenants) Act 1995 (for the avoidance of doubt, a “guarantor” who exercises this right under the 1995 Act is the guarantor of a former tenant)
  • a new lease has been deemed created by operation of law
  • a new lease has been granted under Part 2 of the Landlord and Tenant Act 1954
  • a new lease has been granted by a court order, other than under Part 2 of the Landlord and Tenant Act 1954.

Find Out More

If you’d like to find out more about EPC exemptions as a landlord and see if your property is eligible then please get in touch with the expert team here at Green Earth.