Over a quarter of landlords unaware of energy efficiency exemptions

More than a quarter of landlords don't know there will be exemptions from upcoming new rules on energy efficiency, according to new NRLA data. NRLA research officer Finlay Duncan explains more.

New Minimum Energy Efficiency Standards (MEES) will require a minimum EPC rating of C for all rental homes – unless a legitimate exemption is registered. 

Exemptions have been a part of the MEES regulations since the requirement began in 2018. 

Our data shows that less than 2% of landlords had registered an exemption in the last two years.

This compares to 28% who were not aware MEES exemptions existed at all. In another question 42% of landlords were “not very” or “not at all” confident they understood exemption routes. 

What does the data say?

The existing regulations mean a property must have an EPC rating of E or above – or a legitimate exemption – to be legally rented out.  

Our research shows there were just over 10,000 exemptions on the register by March 2026 covering both domestic and non-domestic properties, of which there were 854 solid wall insulation exemptions, and just over 4,000 related to domestic properties that have met the current cost cap in relation to improvements of £3,500.

Exemptions set to become more important

The UK Government is planning to reform the Minimum Energy Efficiency Standard, raising the minimum rating for privately rented properties in England and Wales from E to C, alongside a higher cost cap of £10,000 for most properties, from October 2030.  

With 46% of PRS properties banded D-E according to the most recent data in the , it’s likely there will be a significant rise in the number of properties eligible for an exemption. 

Under the proposed system, EPCs will also be measured differently. The Home Energy Model (HEM) will replace the current system. Properties will need to meet: 

• A fabric standard: required for all properties, and either  

• Heating standards, favouring low carbon heating, or  

• Smart readiness standards. 

Lack of awareness of the exemptions register could be a serious issue for the Government’s ambitions. 

With nearly a third of privately rented homes in England built pre-1919, compared to a fifth of owner-occupied and less than 10% of social housing, homes in the sector are considerably more expensive to retrofit.  

If landlords are unaware that their older properties can be exempted from the new regulations, then this could incentivise them to sell up and focus on their properties that are already close to meeting the C target.

What exemptions are available?

There a number of new or updated exemptions that will be available to landlords, alongside the existing exemptions. These include:

• A ‘cost cap’ exemption. This will be available where the landlord has spent up to the maximum amount required of £10,000, and the next cheapest measure cannot be installed within the cap. The cost cap takes into account work done from October 2025, as well as the cost of commissioning the EPC. Please note that works done to install fossil fuel heating systems do not count for the cost cap.
• A solid wall insulation exemption allows landlords to choose whether to install solid wall insulation.
• Property value exemption. Where properties are worth less than £100,000 then the landlord will not have to spend more than 10% of the value of the property.

Join our webinars

We are running on ongoing programme of energy efficiency webinars with our next, on 30th September looking at: MEES and the Renters’ Rights Act: a compliance risk you can’t ignore.

The hour-long webinar will be held on Zoom and run from 11am. For more information and to book your place click here. 

Further webinars will be held on: 

4th November when we will discuss: The new EPC system: what’s changing and why it matters. For more information and to book click here.

2nd December, when we will look at: Upgrading to EPC C for under £10,000: what landlords need to know. For more information and to book click here.

More information

• Our award-winning training academy runs an Energy Efficiency and MEES Compliance course covering all your obligations and how to meet them - with places available this month.
• Our website also has a dedicated hub outlining all aspects of the MEES changes