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Minimum Energy Efficiency Standards legislation requires that all rental properties have at least an E rated EPC prior to granting a fresh tenancy. The same applies to existing tenancies for domestic properties, although this will not be applied to existing commercial tenancies until April 2023. MEES Exemptions allow landlords to let properties that do not comply with MEES legislation, under certain circumstances and only when registered on the exemption register.
MEES legislation is changing. Visit MEES Legislation current and proposed changes to get the latest updates.
If an exempt property is sold or transferred in any other way the exemption does not transfer to the new owner. This means that if the new owner has planned to continue to let the property, they will have to either improve the property to the required minimum rating or register an exemption.
Below is a guide of each exemption detailing what it is, which property type it can be applied to, how to register, and information about expiration and re-application.
This exemption states that the MEES legislation does not apply if the cost of implementing the cheapest recommendation exceeds £3,500 including VAT.
Domestic properties only.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
If there is a recommendation that can be made for less than £3,500 incl. VAT then this exemption cannot be made and the recommendation must be implemented. If, after implementing one or more recommendations totalling a cost under £3,500, the property is still missing the rating required as set out in MEES regulations then the “All Improvements Made” exemption should be registered.
This exemption lasts 5 years. Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered.
This exemption can be applied where the "7 year payback" test, which is set out in regulation 28, fails. "Fails" meaning that the expected savings over 7 years from a recommended improvement or package of improvements is less than the cost of installation.
Commercial properties only.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
The 7 year payback exemption lasts 5 years. Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered
This exemption can be applied where all "relevant" energy efficiency improvements have been made (or where there are none/no more that can be made) and the property remains below an E EPC rating. This includes if the landlord has implemented all improvements up to a total of £3,500 including VAT.
Both domestic and commercial properties.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
The All Improvements Made exemption lasts 5 years. Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered.
This exemption is for properties where implementing the following insulation types are not suitable as they would cause damage to the fabric or structure of the property or building that the property is in:
This exemption is applicable even where these insulation types have been recommended for a property on the EPC or Recommendation Report and meet the funding requirements.
Both domestic and commercial properties.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
If this advice cannot be obtained from one of the aforementioned experts, then it may be obtained from an independent installer of the cavity/external/internal insulation systems. In this scenario the written advice would still need to be uploaded to the Private Rented Sector (PRS) Exemptions Register.
The Wall Insulation exemption lasts 5 years. Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
The All Improvements Made exemption lasts 5 years. Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered
Some energy efficiency improvements can legally require consent from a third party before being implemented. Examples of improvements that may require third party consent are things like external wall insulation and solar panels.
Third parties that may be required to consent include:
Please note that this is not a complete list, landlords will need to check documents like leases, local requirements and mortgage conditions to see if there are third parties who need to consent to implementing any improvements.
Both domestic and commercial properties.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
If this exemption has been registered based on a tenant not providing consent then it will only last as long as the tenant continues to let the property, once the tenant leaves the landlord must implement the improvement before letting the property again.
This exemption lasts for 5 years, with the exception of when the consent required is from a tenant (explained above in Limitations). Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered.
This exemption can be used where an independent RICS surveyor advises that the installation of a recommended improvement will reduce the market value of the property, or the building that the property is part of, by more than 5%.
Both domestic and commercial properties.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
Unless another exemption applies, if there are other improvements recommended for the property, then the landlord has to implement these before applying for the Devaluation exemption to see if they raise the rating enough.
The Devaluation exemption lasts 5 years. Once expired, the landlord must try to improve the EPC rating again to at least the minimum rating required. If this is still not achievable then a further exemption can be registered.
This is a temporary exemption for the following circumstances, stated on the government's website, where someone may have suddenly become a landlord:
If you are unsure whether any of these exemptions apply to you, then the government advises that you source independent legal advice.
Both domestic and commercial properties.
To register this exemption for their property the landlord must upload supporting documents on the Private Rented Sector (PRS) Exemptions Register.
Required information:
The New Landlord exemption lasts 6 months from the date that they became a landlord. Once expired and if the landlord intends to continue letting the property, the landlord must have either improved the property to the required rating, or registered for another exemption if applicable.
MEES Exemptions allow landlords to let properties that do not comply with the Minimum Energy Efficiency Standards (MEES) Legislation. MEES regulations mean that landlords cannot let properties without achieving a certain EPC rating first.
To register your property for a MEES Exemption you will need to gather the information required (which changes depending on the exemption, see “How to Register” in each of the exemptions listed above for what information will be needed) and upload it to the Private Rented Sector (PRS) Exemptions Register.
Yes, there are 7 exemptions which exclude properties from MEES regulations and last from 6 months - 5 years.
See above for detailed breakdowns of each exemption.
For more information about MEES legislation and what it means for you see our resources on MEES.