MEES Regulations for Landlords

What This Requirement Covers

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 set Minimum Energy Efficiency Standards (MEES) that apply to privately rented domestic and non-domestic properties. Landlords must not let a property that falls below the minimum EPC rating unless a valid exemption is registered.

Key Requirements

Current Requirements

1. Domestic properties: Minimum EPC rating of E since April 2018 (applies to new tenancies) and since April 2020 (applies to all existing tenancies)
2. Non-domestic properties: Minimum EPC rating of E since April 2023
3. A property below the minimum rating cannot be let to a new tenant or continue to be let to an existing tenant (unless an exemption applies)

Penalties for Non-Compliance

1. Domestic: Civil penalties of up to GBP 5,000 per property

- Letting a property in breach for less than 3 months: GBP 2,000 - Letting a property in breach for 3 months or more: GBP 4,000 - Total maximum penalty: GBP 5,000 per property per breach

1. Non-domestic: Civil penalties based on the rateable value, up to a maximum of GBP 150,000

Exemptions

Exemptions may be registered on the PRS Exemptions Register

1. All improvements made: All relevant energy improvements have been made and the property still does not reach the minimum rating
2. Cost cap: The cost of recommended improvements exceeds the applicable spending cap (GBP 3,500 including VAT for domestic properties)
3. Consent: Required consent (planning, freeholder, etc.) has been refused
4. Devaluation: Improvements would reduce the property value by more than 5%
5. Wall insulation: Wall insulation recommended by the EPC assessor has been assessed as not appropriate

Exemptions are valid for 5 years and must be re-registered if the property is still below the minimum rating at that point.

Future Changes

1. The Government consulted on raising the minimum standard to C by 2028 (domestic) and B by 2030 (non-domestic), but these proposals were paused in 2023
2. Landlords should monitor Government announcements for future changes to the MEES thresholds

Practical Compliance Tips

1. Check the EPC rating of all rental properties in your portfolio against the MEES requirements
2. If any properties are rated F or G, commission an energy assessment to identify the most cost-effective improvements
3. Register any valid exemptions on the PRS Exemptions Register; an unregistered exemption is not valid
4. Plan improvement works when properties are vacant between tenancies to minimise disruption
5. Keep receipts and evidence of improvement works and costs in case of enforcement
6. Review the EPC when it expires (every 10 years); the property's rating may change due to updated methodology
7. Consider improving properties to Band C now, in anticipation of future MEES increases