Landlords unaware of EPC exemptions as 2030 deadline approaches

More than a quarter of landlords are unaware of EPC exemptions as older buildings struggle to meet EPC C target by 2030.

Research by the National Residential Landlords Association (NRLA) reveals that 28% of landlords were unaware that EPC exemptions existed, while fewer than 2% had registered an exemption in the past two years.

Under the proposed government rules, landlords who are unable to bring a property up to EPC C may be eligible for an exemption.

This could apply where they have spent up to the proposed £10,000 cost cap on improvements, where further works would exceed the cap, or where recommended measures are not suitable for the property.

Increase the number of properties eligible for exemptions

Under current rules, a property must have an EPC rating of E or above, or a legitimate exemption, to be legally rented out.

According to the NRLA, there were just over 10,000 exemptions on the register by March 2026 covering both domestic and non-domestic properties. Of these, 854 related to solid wall insulation exemptions, while more than 4,00 related to domestic properties that had reached the £3,500 cost cap for energy efficiency improvements.

The government has announced plans to overhaul the way EPCs are measured, arguing the current single-metric system is “insufficient”.

Under the current rules, EPCs are based on the amount of energy a property uses per square metre and how much energy it loses through factors such as poor insulation.

The proposed reforms would introduce four headline metrics: fabric performance, heating system, smart readiness and energy cost, with energy use and carbon emissions provided as secondary information.

The NRLA says the proposed EPC changes could significantly increase the number of properties eligible for exemptions, with 46% of PRS properties currently rated D or E.

Older buildings will struggle to meet EPC C target

Other exemptions include a solid wall insulation exemption, which allows landlords to choose whether to install solid wall insulation.

There is also a property value exemption, meaning landlords will not be required to spend more than 10% of the value of a property worth less than £100,000 on improvements.

As previously reported by Property118, Propertymark has welcomed the £10,000 cost cap but warned that many older buildings will still struggle to meet the required standard within the limit.

Timothy Douglas, head of policy and campaigns at Propertymark, explains: “We support the proposed extension of exemptions to 10 years within the £10,000 cost cap framework, as it offers landlords greater certainty and more time to plan improvements strategically.

“However, Propertymark has consistently argued that many properties will still struggle to achieve EPC C within the proposed cap, particularly older buildings requiring extensive retrofit works.

“Landlords need clearer guidance, long-term policy stability, and greater financial assistance if the sector is to meet the 2030 deadline without unintended consequences for housing supply.

“Targets should also be linked to the age and archetype of properties to ensure homes become as energy efficient as possible without losing much-needed rental stock from the private rented sector.”