Non-Domestic Minimum Energy Efficiency Standards
(MEES)
Minimum Standards for Non-Domestic Properties
Since 2018, granting new leases for privately rented commercial properties with an EPC rating below ‘E’ has been unlawful. In 2023, this requirement was extended to include existing leases and the government has also proposed a long-term goal for all privately rented commercial properties to reach an EPC rating of B by 2030. However, further guidance on how this will be achieved is still pending.
The Ministry of housing, Communities and Local Government (MHCLG) has noted that 20% to 25% of residential and commercial properties in England and Wales currently meet or fall below the existing MEES threshold.
In addition, the government has proposed tightening standards further—requiring an EPC rating of C for new tenancies by 2025, and for all tenancies by 2028—though these measures are yet to be confirmed.
About MEES Exemptions
Landlords may register an exemption to remain compliant with MEES regulations, even if their property does not meet the required standards. Most exemptions are valid for five years, with the exception of the recently became a landlord exemption, which is valid for only six months.
However, unlike an EPC, which is attached to the property, exemptions are tied to the individual landlord. This means that if ownership changes, the new landlord must register a new exemption in order to remain compliant with MEES regulations.
Exemptions for both domestic and non-domestic properties can be submitted through the following website below:
Possible 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.
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