EPC C: Government launches new exemptions register
A new exemptions register has been launched by the Government ahead of the introduction of stringent new energy efficiency standards for the private rented sector (PRS).
From 2030, all privately rented properties must have an EPC of C or above, or have a valid exemption, to be legally let out.
Ahead of this major overhaul the Government has created an updated version the register, which will now operate through its ‘One Login' service.
It says the change will help streamline access and make it easier for landlords' to manage and, importantly, evidence exemptions.
What are acceptable exemptions now?
Currently, exemptions can be granted for properties rented with an EPC rating below E, offering a legal justification to allow them to continue to be rented, despite falling below minimum standards.
These include exemptions if:
- You have made all possible improvements (up to a £3,500 cap) but still can’t make the grade
- Even the cheapest improvements are above the £3,500 cap.
- Wall insulation is recommended, but would damage the property’s structure
- Improvements works would knock 5% or more off the property’s value.
- Tenants, freeholders mortgage providers, or planning authorities won’t allow works.
There is also a temporary exemption for new landlords which gives them a six month grace period either upgrade the property or apply for an exemption.
What do we know about the new exemptions system?
We are still awaiting full details, but the Government has confirmed there will be new exemptions to the regime for homes that fall below the new minimum C grade.
These include:
- A cost cap exemption: This means you can register for an exemption if the property is still rated below band C after you have spent £10,000 on improvements. Under the plans this exemption will be in place for 10 years,
- A low property value exemption: The £10,000 cost cap will be adjusted for homes valued at under £100,000 and capped at 10% of the property’s value. Again, once you have hit that cap you are eligible for an exemption.
Will there be any other exemptions?
The Government has yet to confirm any additional exemptions, but we will keep you updated on announcements as and when they are made, so be sure to keep an eye on our news channels and follow us on social media for all the latest news.
Conference invitation
As part of the preperations for the changes up ahead we have been working closely with the Property Energy Professionals Association (PEPA) on developing practical solutiosn to the challenges up ahead, to esnure landlords and energy assessors are well-equipped for upcoming reforms. The association has invited NRLA members to attend its annual conference on 29th June, where experts will discuss topics including EPC reform, the Home Energy Model (HEM), the Warm Homes Plan, and upcoming MEES changes.Members can use code NRLA26 for £10 off tickets.
