High-Cost exemption

Modelled: If the cost of making even the cheapest improvement exceeds the cost cap, we do not upgrade a property.

All Relevant Improvements Made exemption

Modelled: If no relevant improvements can be made then no improvements are made in the modelling.

Cost Cap exemption

Modelled: Where landlords install measures and hit the cost cap before reaching MEES, the model stops upgrading the property.

Property Value Adjustment exemption (affordability exemption)

Not modelled: This exemption allows landlords of properties valued below £100,000 to work to a cost cap that is 10% of the property’s value. The NBM does not contain property prices to allow robust modelling of the exemption.

Solid Wall Insulation (SWI) exemption

Modelled: For simplicity, we assume all landlords who can take advantage of this exemption do so (there may in reality be a small number of landlords who still wish to install SWI). Thus, our modelling results do not include SWI.

Negative Impacts exemption

Not modelled: We do not account for specific cases where a measure is recommended on an EPC, but determined to negatively impact a property or its value through some other assessment.

Third-Party Consent exemption

Partially modelled: We do account for in-situ tenants not consenting to improvements at a rate of 10%. However, we do not account for refused consent from other third parties, including superior landlords (freeholders) and local authorities through planning permission processes.

New landlord exemption

Not modelled: We do not account for property transfers, but given new landlords exemptions only last for 6 months this will not significantly affect modelling results