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Guide

The EPC C improvement cost cap

You are not required to spend without limit to reach EPC C. The cost cap sets how much you must spend before an exemption can apply — here's how it works and what's still being decided.

What the cost cap is

MEES has always paired its minimum standard with a spending limit: landlords must make improvements only up to a capped amount. Under the current E standard that cap is £3,500 (including VAT) per property. If you reach the cap without hitting the target, you can register an exemption instead of spending more.

The cap under the EPC C standard

Raising the bar to C means more work for many properties, so a higher cap was consulted on as part of the move to C. At the time of writing the figure has not been confirmed in regulations. Because the number matters a great deal — it decides whether you must do the work or can claim an exemption — we will not quote a figure until it is law. Our checker treats the cap as a configurable parameter and clearly labels it as unconfirmed.

What spend counts

Government has indicated that qualifying improvement spend from 1 October 2025 can count toward the cap. The practical step now: keep every invoice and EPC for energy works from that date, so the spend is evidenced if you later need to rely on the cap.

Check your starting point

The checker shows a property’s current band and the indicative cost of the measures on its EPC, so you can see how it compares to the cap range.

Last reviewed June 2026. The legacy £3,500 cap is confirmed; the EPC-C cap figure is not. See also our exemptions guide.

Common questions

What is the cost cap under the new EPC C rules?
A higher cap than the legacy £3,500 was consulted on, but the final figure has not been confirmed in regulations. We deliberately do not quote a number until it is law — our checker treats the cap as a parameter and labels it unconfirmed.
What spend counts towards the cap?
Qualifying spend on relevant energy improvements. Government has indicated that qualifying spend from 1 October 2025 onwards can count toward the cap, so keep evidence of works and invoices from that date.
What happens when I hit the cap?
If you have spent up to the cap on the relevant improvements and the property still falls short of C, you can register a cost-cap (or "all relevant improvements made") exemption rather than spend more.

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