Understanding EPC Exemptions

16/12/19

As we all know, the rules around energy performance certificates (EPC) came into force last year in England and Wales.  However, there has been continued confusion surrounding certain exemptions. To clarify, there are seven areas of exemption for private rental properties under the Minimum Energy Efficiency Regulations;

  • ‘High cost’ exemption – A property may be exempt when the cost of the cheapest improvement exceeds £3500 + vat.
  • ‘7 Year Payback’ exemption – If the cost of the necessary improvements total more than the expected savings on energy bills over a 7-year period a property may be qualify for exemption.
  • ‘All Improvements made’ exemption – This exemption may apply if all of the relevant energy efficiency improvements have been made and the property still remains below the required standards.
  • ‘Wall Insulation’ exemption – If a landlord obtains written advice from one of a given list of authorised experts to confirm that wall insulation may not be suitable and could have a negative impact on the fabric of the building, wall insulation exemption may apply.
  • ‘Consent’ exemption – There are situations where consent to make energy efficiency improvements has been denied e.g. by tenants and the landlord can then apply for an EPC exemption.
  • ‘Devaluation’ exemption – When improvements may devalue the property by 5% or more, an exemption may be granted from the minimum standard.
  • ‘New Landlord’ exemption – There is a possible exemption period of 6 months for new landlords. 

 

As you would expect, EPC exemptions are not as simple as the bullet points above and there is small print to understand in each of the above-mentioned scenarios. 

The full list of conditions can be found here: https://www.gov.uk/government/publications/private-rented-sector-minimum-energy-efficiency-standard-exemptions/guidance-on-prs-exemptions-and-exemptions-register-evidence-requirements#high-cost-exemption

Or alternatively, please contact one of the Pace Properties team today.

 


Marcus James is Lettings Manager at Pace, an independent Southend on Sea Letting Agent. He deals with every aspect of the property letting process, providing expert and candid advice together with tailor-made marketing plans for each property he lists for rental.

Marcus prides himself on ensuring our landlord clients get the best return in the right timeframe for their investments by conducting rental appraisals, letting viewings and oversees the running of the lettings department.


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