From 1 October 2030, a private rented home in England and Wales will need an EPC of C or above, or a valid exemption registered on the public PRS Exemptions Register. Miss both and the property cannot legally be let to new tenants, with enforcement penalties under the confirmed framework reaching up to £30,000 per property. Here is how the exemptions actually work, what they demand in evidence, and why for most D-rated properties compliance is cheaper than exemption.
The exemption routes, and what each one requires
| Exemption | When it applies | What you must evidence |
|---|---|---|
| Cost cap ("all improvements made") | You have spent up to the £10,000 cap on qualifying improvements and the property still is not a C | Invoices and reports demonstrating the spend, counted from 1 October 2025 |
| Consent | A tenant, superior landlord or third party refuses consent for the works | Evidence that consent was sought and refused |
| Devaluation | A qualified surveyor reports the works would reduce the property's value by more than 5% | The surveyor's written report |
| New landlord | You have very recently become the landlord | Temporary only, a short grace period before the standard applies |
| Heritage / listed | Improvements would unacceptably alter a protected building | Case-by-case under the reformed rules rather than a blanket exemption |
Two things stand out. First, every route needs documentary evidence lodged on a public register; none of them is a quiet opt-out. Second, the big one, the cost cap, only opens after you have already spent the money. Exemption is not a way to avoid the £10,000; it is what happens after the £10,000 did not get you there.
The maths most landlords run too late
Compare the two paths for a typical mid-D terrace. Path one: spend towards £10,000, keep the invoices, register an exemption, revisit it all in five years. Path two: check whether the certificate is even accurate. Thousands of D-rated EPCs carry assumed worst-case values that a measured air tightness test can legitimately correct under RdSAP 10, and Thermova's guaranteed EPC C service does exactly that for £500 flat, charged only when the C is lodged. When it works, the whole exemptions question disappears for the ten-year life of the certificate.
Where measurement alone will not close the gap, ordering matters: grant-funded work first, because the £7,500 Boiler Upgrade Scheme grant does not count against your cap, then the fabric measures with the best points per pound. Our cost comparison guide ranks the options.
Penalties and the lettings reality
Penalty exposure is only half the risk. A non-compliant property cannot be re-let, which turns every tenancy end after October 2030 into a void with a deadline attached. Lenders and buyers already price EPCs into valuations, so a stranded D is a balance-sheet problem before it is ever an enforcement one. The full policy picture, including the 2027 methodology change that makes late compliance harder, is in our EPC C by 2030 guide.
What to do this year
- Pull every certificate from the national register and note score, expiry and "assumed" entries.
- Mid-to-high D properties: pre-screen for the measured route before budgeting any works.
- E and below: plan fabric plus grant-funded heating, keeping every invoice, since the same paperwork serves compliance or a future cost-cap exemption.
- Do not bank on exemptions as a strategy. They are evidence-heavy, time-limited and public.
Frequently asked questions
What is the penalty for not reaching EPC C by 2030?
What is the £10,000 cost cap?
Does the Boiler Upgrade Scheme grant count towards the cap?
How long does a MEES exemption last?
Are listed buildings exempt?
Next step
Cheaper to comply than to evidence an exemption?
For many D-rated properties the answer is yes: a £500 measured test, charged only if the C is lodged, closes the question entirely. Ask the chat assistant to check your address, or book a free survey below.