Most homes in England and Wales need an Energy Performance Certificate (EPC) when they’re sold or rented out. However, there are some properties that don’t need one. This guide explains which properties are exempt from needing an EPC, and helps you understand whether you need one for your home.
EPCs are certificates that show how energy efficient your property is, with ratings from A (most efficient) to G (least efficient). They help buyers and renters understand potential energy costs and are usually required by law.
You can learn more about EPCs in our Guide to Energy Performance Certificates.
Which properties don’t need an EPC?
Several types of properties are exempt from needing an Energy Performance Certificate. Here’s what you need to know about the main exemptions:
- Temporary buildings: If a building is only going to be used for two years or less, it doesn’t need an EPC. This might include temporary offices or short-term accommodation structures.
- Religious buildings: Buildings that are used primarily for worship don’t need an EPC. This applies to churches, mosques, temples and other religious buildings where the main use is for worship activities.
- Small standalone buildings: If a building has a total useful floor area of less than 50 square metres (about the size of a large single garage), it doesn’t need an EPC. This often applies to small outbuildings or workshops.
- Some industrial and agricultural buildings: Buildings that use very little energy for heating or lighting might be exempt. This applies if they use less than 25% of their energy for heating spaces where people work.
- Holiday accommodation: Properties that are rented out for less than four months each year, or only used for short holiday lets, may not need an EPC. However, this only applies if the total time it’s rented adds up to less than four months annually.
- Listed buildings: The rules around listed buildings and EPCs can be complex. While being listed doesn’t automatically exempt a building from needing an EPC, exemptions may apply if energy-efficiency improvements would unacceptably alter the building’s character. Here, it’s worth getting professional advice about your specific property.
How to check if you need an EPC
The simplest way to start is by visiting the government’s website, which provides detailed guidance on EPC requirements. You can also contact an accredited EPC assessor who can give you professional advice about your specific situation.
Many people find it helpful to speak with their local authority’s building control department, as they often have experience with similar properties in your area. Estate agents and property professionals can also provide valuable insights based on their experience with similar properties.
Remember that even if your property might be exempt, having an EPC can still be useful. It can help you understand your home’s energy efficiency and potential improvements that could save you money on energy bills.
I’m eligible for an EPC exemption – how do I register?
If your property is exempt from needing an EPC, you may need to register this exemption, especially if you’re a landlord.
The process involves gathering evidence that shows why your property is exempt. You will need to register on the government’s PRS Exemptions Register and provide required documentation to support your exemption claim. It’s important to keep records of your exemption registration and any supporting documents, as you might need these in the future.
The exemption register is particularly important for landlords, as it provides legal protection if you’re renting out a property that doesn’t meet minimum energy efficiency standards.
What about rental properties?
The rules for rental properties are particularly strict because of Minimum Energy Efficiency Standards (MEES). Since April 2020, all rental properties must have an EPC rating of at least ‘E’ unless they have a registered exemption.
Landlords can register several types of exemptions if their property can’t meet the minimum ‘E’ rating requirement. These are as follows…
High cost exemption
If improvements would cost more than £3,500 (including VAT), you could register for this exemption. You will need quotes from three different suppliers to prove the cost. This applies only to domestic properties, and you must provide evidence that even the cheapest recommended improvement would exceed this amount. The exemption lasts for five years, after which you will need to reassess whether improvements can be made.
All improvements made
This exemption applies when you’ve made all possible recommended improvements, but your property still doesn’t reach an ‘E’ rating. You could also qualify if you’ve made improvements up to the cost cap of £3,500 but haven’t achieved the minimum rating. You will need to provide evidence of the improvements made and any reports showing why no further improvements are possible. This exemption lasts for five years.
Consent exemption
Sometimes you will need permission from others before making energy efficiency improvements. This might include planning permission from local authorities, consent from mortgage lenders or agreement from tenants. If you can prove you’ve tried to get consent, but it was refused, or was granted with conditions you couldn’t reasonably meet, you can register for this exemption. For tenant-related consent issues, the exemption only lasts until that tenant leaves.
Wall insulation exemption
Some properties aren’t suitable for wall insulation, even if it’s recommended. If a qualified expert confirms that cavity wall insulation, external wall insulation or internal wall insulation would damage your property, you can register for an exemption. This expert must be appropriately qualified, such as a chartered surveyor from the RICS Building Conservation Accreditation register. The exemption lasts for five years.
Devaluation exemption
If you can prove that making the required energy efficiency improvements would reduce your property’s market value by more than 5%, you could qualify for this exemption. You will need a report from an independent RICS surveyor confirming this. Remember that even if some improvements would devalue the property, you still need to make any other recommended improvements that wouldn’t cause devaluation.
New landlord exemption
If you’ve recently become a landlord under specific circumstances, such as buying a property with an existing tenant or inheriting a rental property, you could be eligible for a temporary exemption. This gives you six months to either bring the property up to standard or register for another type of exemption.
What about EPCs and commercial buildings?
Commercial buildings present their own unique challenges when it comes to energy efficiency and EPC exemptions. These rules can be particularly complex, especially for historic or traditionally constructed buildings.
Commercial properties can be exempt for various reasons, including planned demolition, industrial sites with low energy use, buildings used for religious purposes, and temporary structures. However, the assessment process for commercial buildings often requires more detailed consideration than residential properties.
A key difference for commercial properties is the ‘seven-year payback’ rule. Under this rule, landlords don’t have to make improvements if they can prove that the cost of installing them would take more than seven years to recover through energy bill savings. This requires careful calculation and evidence from qualified professionals.
The challenge is particularly significant for older commercial buildings. Unlike modern structures that use waterproof materials such as concrete and cement, traditional buildings often use water-permeable materials such as timber and lime mortar. These buildings work differently, absorbing and releasing moisture in a way that helps maintain their structure and internal environment. This means that standard energy efficiency improvements might not be suitable or could even cause damage.
Commercial landlords should be particularly careful about understanding and following the rules, as penalties for non-compliance can be significant. It’s worth getting specialist advice to ensure you’re meeting the requirements while protecting your property’s value and structural integrity.
Looking ahead: Future changes to EPC requirements
The government has proposed changes to minimum EPC requirements for rental properties, with plans to raise the minimum standard to a ‘C’ rating by 2030. While this hasn’t yet been introduced to parliament, it’s an important development that landlords should be aware of. If implemented, this would be a significant increase from the current minimum rating of ‘E’.
Landlords with properties currently rated D or below might want to consider how they could improve their energy efficiency over time. While no changes have been confirmed yet, understanding your property’s potential for improvement and planning ahead could help spread costs and work over a longer period. Keep an eye on government announcements for updates about any confirmed changes to EPC requirements.
What to do next
Taking action about your property’s EPC status starts with understanding your specific situation.
First, check the exact requirements for your type of property by consulting official guidance or speaking with a professional. If you think your property might be exempt, gather all relevant evidence to support this, such as surveyor reports or planning documents. For rental properties, ensure you understand the current minimum standards and register any applicable exemptions well in advance of letting.
Even if your property is exempt, consider investigating potential energy efficiency improvements, as these could still provide significant benefits in terms of reduced energy bills and improved comfort. Our energy efficiency guides provide helpful information about potential improvements.