Research from the National Residential Landlords Association (NRLA) indicates that 28% of landlords are unaware of Energy Performance Certificate (EPC) exemptions. The NRLA also found that fewer than 2% of landlords had registered an exemption in the last two years.
Under proposed government rules, landlords may be eligible for an exemption if they cannot bring a property up to an EPC C rating, even after spending up to a proposed £10,000 cost cap on improvements. Exemptions could also apply if further works would exceed this cap or if recommended measures are unsuitable for the property.
The government has announced plans to reform EPC measurement, citing the current single-metric system as “insufficient.” The proposed reforms would introduce four headline metrics: fabric performance, heating system, smart readiness, and energy cost, with energy use and carbon emissions as secondary information.
Propertymark's head of policy and campaigns, Timothy Douglas, welcomed the proposed extension of exemptions to 10 years within the £10,000 cost cap framework. However, he stated that Propertymark has consistently argued that many properties, particularly older buildings, will still struggle to achieve EPC C within the proposed cap.