Minimum Energy Efficiency Standards
(MEES)
As a landlord in England and Wales, you must adhere to Minimum Energy Efficiency Standards (MEES) to legally rent out your buildings. Learn more about these regulations and how they apply to your property.
Information
The Domestic Minimum Energy Efficiency Standard (MEES) Regulations establish a minimum energy efficiency requirement for privately rented homes.
These regulations apply to all domestic rental properties that:
- Are let under certain types of tenancy agreements
- Are legally required to have an Energy Performance Certificate (EPC)
From 1 April 2020, covered by the MEES Regulations mean that landlords have not been permitted to let properties if the Energy Performance Certificate (EPC) rating is below E, unless an exemption has been granted. Those who fail to comply may face fines of up to £5,000.
If you intend to let a property with an EPC rating of F or G, you must upgrade it to at least an E rating or register a valid exemption before starting a new tenancy agreement.
If you’re currently renting out a property with an EPC rating of F or G and haven’t yet acted, you must either improve the rating to at least E without delay or register a valid exemption.
If the property is vacant and you have no immediate plans to rent it out, there’s no requirement to carry out improvements until you decide to let it again.
The Cost Cap:
Landlords are not required to spend more than £3,500 (including VAT) on energy efficiency upgrades.
If it’s not possible to raise the property’s EPC rating to at least E within this budget, you must carry out all eligible improvements up to the £3,500 limit, and then register an ‘all improvements made’ exemption.
There are three ways to finance these improvements:
- Option 1: Fully funded by a third party
- Option 2: A mix of third-party funding and your own contribution
- Option 3: Entirely self-funded
Possible MEES Exemptions are as follows:
- All Improvements Made Exemption - Where all recommended improvement measures for the property have been made, but the property has remained below an EPC E rating.
- Wall Insulation Exemption - Certain wall insulation systems may not be suitable in certain properties, even where they have been recommended. A copy of written opinion from a relevant expert, stating insulation is not suitable, is required here.
- Consent Exemption – Some energy efficiency improvements can require third party consent (e.g., from a tenant, local authority, mortgage lenders etc) before they are installed in the property. A copy of any correspondence demonstrating the consent was required, sought, and ultimately refused is required in order to register for this exemption.
- 7 Year Payback Rule - This requires the landlord to provide three quotes from qualified installers for the purchase and installation of the measure, along with evidence and calculations demonstrating that the measure does not meet the seven-year payback rule and confirmation that the landlord is satisfied with this assessment.
- Devaluation Exemption – When all recommended energy efficiency measures would lead to the property becoming devalued. A report from an independent RICS surveyor is required to confirm that installing the measure would reduce the property's value by more than 5%.
- New Landlord Exemption – This is a temporary exemption. This exemption will only last for 6 months and applies where the individual has become a landlord “suddenly”. The date and full explanation of the circumstances under which they became the landlord are required for this exemption.
Receive the latest Quidos technical updates, CPD & training offers and industry news. You can also explore our Trustpilot reviews and share your feedback.
Get in touch
If you have any queries or concerns do not hesitate to get in touch and one of our team will be happy to help.