Minimum Energy Efficiency Standards (MEES)

Minimum Energy Efficiency Standard (MEES)

Manage your route to an Asset Rating of B for all your properties by 2030.

The Minimum Energy Efficiency Standard (MEES) aims to improve the energy efficiency of the national building stock.

From April 2018, it became unlawful to grant new leases for non-domestic properties in England and Wales which do not meet the standard. These regulations extended to all privately rented properties from April 2023. The minimum standard is currently an EPC rating of E, this will move to a C rating by 2027 and then a B rating by 2030.

For domestic properties the government has confirmed that rental properties must achieve a C rating by 2030. There is currently consultation in relation to non-domestic properties but we anticipate that the announcement will be that these properties will have to achieve a B rating by either 2030 or 2031 (announcement due May 2025).

If a non-domestic property falls within the scope of MEES, the landlord may still let it (even with an EPC rating below E) if an exemption applies. An exemption to MEES must be entered on the PRS Exemption Register which will then last for five years. Exemptions are personal, which means if a property is sold the new owner must apply for a fresh exemption.

The EPC regulations require that an EPC is provided:

Where an existing building is to be sold or rented out (which includes the assignment of an existing lease).

Following the construction of new buildings.

When certain refurbishment works are undertaken.

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Benefits of MEES Compliance

End-to-end managed service

We can provide your EPC and provide an end-to-end managed service to tender, design and install any improvement recommendations to meet the standard if the EPC rating falls below an E. We can even source the finance required for the installations and manage the process for you. Once these have been done, the EPC can be produced again to show the improved rating that meets the minimum standard of MEES.

Increase value of your building

Asset managers should have a strategic plan to bring their portfolios into compliance, thus protecting property values and ability to lease them. We will work with you to identify the improvements required to achieve compliance and a more energy-efficient building that has increased in value. Occupants will save money on energy and, importantly, you will legally be able to sell/lease the property.

Value-added service

When you engage us to manage the design and install of the recommendations, we can provide the EPCs free of charge.

Our comprehensive service guides organisations to improve energy efficiency and avoid heavy fines. Financial penalties for non-compliance are linked to the rateable value of the property but could be as much as £150,000.

What exemptions apply to MEES?

If a property falls within the scope of MEES, the landlord may still let it (even with an EPC rating below E) if one of the following exemptions applies. An exemption to MEES must be entered on the PRS Exemption Register which will then last for five years. Exemptions are personal, which means if a property is sold the new owner must apply for a fresh exemption.

Consent exemption

Within the preceding five years, a consent required to carry out the relevant energy efficiency improvement works has been refused (despite reasonable efforts by the landlord to obtain such consent). For example, if planning permission or listed building consent was refused for the alterations, or if superior landlord would not approve the works.

The cost of the energy improvements isn’t effective

If the payback period on energy efficiency improvements is over seven years, then the property can be exempt from MEES.

Devaluation exemption

The landlord has obtained a report from an independent surveyor that confirms making the relevant energy efficiency improvements would result in a reduction of more than 5% of the market value of the property (or the building of which it forms part).

Temporary exemptions

Where someone has become a landlord unexpectedly, it is deemed unreasonable and inappropriate to expect them to comply immediately with the standard. A temporary six-month exemption may be used in this case.

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