EPC minimum energy efficiency landlord: rules, exemptions, next steps

For domestic private rented property covered by the Minimum Energy Efficiency Standard (MEES) rules, you generally cannot let, or keep letting, a home with an EPC rating below E unless you have a valid exemption registered. If your property has an EPC rating of F or G, you must improve it to band E, or register an exemption.

What are MEES and EPCs, and who is this guidance for?

The government’s guidance is for landlords of domestic private rented properties. It explains how to comply with the 2018 Minimum Level of Energy Efficiency standard, which is EPC band E.

MEES stands for the Domestic Minimum Energy Efficiency Standard. The guidance explains that the MEES Regulations set a minimum energy efficiency level for domestic private rented properties.

An Energy Performance Certificate (EPC) is the energy rating document used in the rules. The MEES rules only apply where a property is legally required to have an EPC.

If you are dealing with a non domestic private rented property, the guidance says there is different guidance for landlords of non domestic private rented properties. This article only covers what the domestic private rented property guidance says.

Is my rented property covered by the MEES Regulations?

The guidance says the Regulations apply to all domestic private rented properties that are both:

• let on specific types of tenancy agreement, and
• legally required to have an EPC

It suggests you answer these questions to check whether your property is covered:

1. Is your property let on one of the following types of domestic tenancies: an assured tenancy, a regulated tenancy, or a domestic agricultural tenancy?
2. Is your property legally required to have an EPC?

The guidance adds a practical pointer about EPC requirements: if the property you let has been marketed for sale or let, or modified, in the past 10 years then it will probably be legally required to have an EPC.

If you answered yes to both questions, and your property has an EPC rating of F or G, the guidance says you must take appropriate steps to comply with the MEES Regulations.

If you answered no to one or both questions, the guidance says your property is not covered by the Regulations, and you do not need to take action to improve the property rating. It also says you may let it with an EPC rating of F or G.

When do I need to improve an EPC F or G to EPC E?

The guidance sets out the key timing point landlords need to know. It states that since 1 April 2020, landlords can no longer let or continue to let properties covered by the MEES Regulations if they have an EPC rating below E, unless they have a valid exemption in place.

From there, the guidance splits the next step depending on your situation.

If you are planning a new tenancy

If you are currently planning to let a property with an EPC rating of F or G, the guidance says you need to improve the property’s rating to E, or register an exemption, before you enter into a new tenancy.

If you are already letting the property

If you are currently letting a property with an EPC rating of F or G, and you have not already taken action, the guidance says you must improve the property’s rating to E immediately, or register an exemption.

If the property is empty

If your property is currently empty, and you are not planning to let it, the guidance says you do not need to take any action to improve its rating until you decide to let it again.

How much do I have to spend to reach EPC E?

The guidance explains a cost cap. It says you are not currently required to spend more than £3,500 (including VAT) on energy efficiency improvements.

If you cannot improve your property to EPC E for £3,500 or less, the guidance says you should make all the improvements which can be made up to that amount, then register an all improvements made exemption.

The guidance also explains that:

• You do not need to spend up to £3,500 if your property can be improved to EPC E for less.
• If you can improve your property to E for less than the cost cap, that is all you need to spend.
• You can count any energy efficiency investment made to your property since 1 October 2017 within the cost cap.

How can I fund energy efficiency improvements?

The guidance lists 3 ways to fund improvements:

• Option 1: Third party funding
• Option 2: Combination of third party funding and self funding
• Option 3: Self funding

Option 1: Third party funding

If you are able to secure third party funding to cover the full cost of improving your property to EPC E, the guidance says you can use this and you do not need to invest your own funding.

It also says that where full third party funding is secured:

• the cost cap does not apply
• you should make use of all the funding you secure to get your property to band E, or if possible higher

The guidance says funding can include Energy Company Obligation (ECO), local authority grants, and Green Deal finance.

Option 2: A mix of third party funding and your own funds

If you can secure third party funding but it is less than £3,500, and not enough to improve your property to EPC E, the guidance says you may need to top up with your own funds to the value of the cost cap.

It also notes that you can count any energy efficiency investment made to your property since 1 October 2017 within the cost cap, and that if your property can be improved to E for less than the cap, that is all you need to spend.

Option 3: Self funding

If you are unable to secure any funding, the guidance says you need to use your own funds to improve your property. It says you will never need to spend more than the cost cap.

It also says that if it would cost more than £3,500 to improve your property to E, you should install all recommended measures that can be installed within that amount, then register an exemption.

Which improvements count for MEES, and what if my EPC does not increase?

The guidance says your EPC report includes a list of recommendations detailing measures which should improve the energy efficiency of your property. It includes a short list of top actions and a more detailed list further down.

The MEES Regulations use the term relevant energy efficiency improvements. The guidance defines this as a measure, or package of measures, recommended in your EPC report, which can be purchased and installed for £3,500 or less (including VAT), which is the cost cap.

It also says other types of reports may contain the recommendations list from the EPC report, for example a Green Deal Advice Report (GDAR) or reports produced by qualified surveyors.

If you have installed all relevant energy efficiency improvements for your property, but the EPC rating is still below E, the guidance says you can register an exemption on the grounds that all relevant improvements have been made and the property remains below an E.

There is an important warning in the guidance if you plan to do works that are not on the recommended list. It says you are free to install any energy efficiency measures, but if your chosen improvements do not appear in the list of recommended energy efficiency improvements and they fail to improve your property to EPC E, you will not be able to let the property or register an all relevant improvements made exemption. It says you will then need to make further attempts to improve the rating to a minimum of E, in order to let the property.

What exemptions exist, and how long do they last?

The guidance says there are various exemptions that apply to the prohibition on letting a property with an energy efficiency rating below E. If your property meets the criteria for an exemption, you will be able to let it once you have registered the exemption on the PRS Exemptions Register.

For all exemptions, the guidance says you must provide:

• address of the property
• type of exemption you are registering
• landlord details

The guidance lists these exemptions and their requirements:

• All relevant improvements made exemption
• High cost exemption
• Wall insulation exemption
• Third party consent exemption
• Property devaluation exemption
• Temporary exemption due to recently becoming a landlord

All relevant improvements made exemption (up to the cost cap)

The guidance says to register this exemption if the property is still below EPC E after improvements have been made up to the cost cap (which it states as £3,500 incl VAT), or there are none that can be made.

The guidance says this exemption lasts 5 years. After that it will expire and you must try again to improve the property’s EPC rating to E. If it is still not possible, you may register a further exemption.

To register it, the guidance says you need extra information including (where relevant) a copy of a report prepared by a surveyor if you did not rely on the EPC report, and details including the date of installation of all recommended improvements you made.

High cost exemption (cheapest measure costs more than the cap)

The guidance says to register this exemption if no improvement can be made because the cost of installing even the cheapest recommended measure would exceed £3,500 (including VAT).

It says this exemption lasts 5 years, then expires and you must try again to improve the EPC rating, or if still not possible you may register a further exemption.

For evidence, the guidance says you need 3 quotes from qualified installers for purchasing and installing the cheapest recommended measure demonstrating the cost would exceed £3,500 (including VAT), plus written confirmation that you are satisfied the measure exceeds £3,500 (including VAT).

Wall insulation exemption (negative impact on the building)

The guidance says to register this exemption if the only relevant improvements for your property are cavity wall insulation, external wall insulation, or internal wall insulation (for external walls), and you have obtained written expert advice showing these measures would negatively impact the fabric or structure of the property (or the building of which it is part).

It says this exemption lasts 5 years. It also says you must provide a copy of the written opinion of a relevant expert stating the property cannot be improved to an EPC E because a recommended wall insulation measure would have a negative impact.

Third party consent exemption (consent refused or conditions not reasonably possible)

The guidance says to register this exemption if the relevant improvements need consent from another party, such as a tenant, superior landlord, mortgagee, freeholder or planning department, and despite your best efforts consent cannot be obtained, or is given subject to conditions you could not reasonably comply with.

It says this exemption lasts 5 years, or where lack of tenant consent was the issue, until the current tenancy ends or is assigned to a new tenant.

For evidence, the guidance says you must provide copies of correspondence and or relevant documentation demonstrating that consent was required and sought, and that consent was refused, or granted subject to a condition you were not reasonably able to comply with.

Property devaluation exemption (more than 5% reduction in market value)

The guidance says to register this exemption if you have evidence showing that making energy efficiency improvements would devalue the property by more than 5%. It says you will need a report from an independent surveyor, and that surveyor needs to be on the Royal Institute of Chartered Surveyors (RICS) register of valuers, and advise that installation of the relevant improvement measures would reduce the market value by more than 5%.

It says this exemption lasts 5 years, then expires and you must try again, and if still not possible you may register a further exemption.

Temporary exemption due to recently becoming a landlord (6 months)

The guidance says that if you have recently become a landlord under certain circumstances, you will not be expected to take immediate action to improve your property to EPC E. It says you may claim a 6 months exemption from the date you became a landlord.

It says this exemption lasts 6 months from the date you became the landlord. After that it will expire and you must have either improved the property to EPC E, or registered another valid exemption if one applies.

To register it, the guidance says you must provide the date you became the landlord for the property, and the circumstances under which you became the landlord.

How do I register a MEES exemption, and what evidence do I upload?

The guidance says you register exemptions on the PRS Exemptions Register. You can start from the official guidance page at Domestic private rented property: minimum energy efficiency standard, landlord guidance.

It sets out the registration process as steps:

1. Create or log in to your account, using One Login.
2. Enter the address of your property.
3. Select the exemptions you want to register.
4. Upload all the required evidence (the Register can accept pdf, png, jpg, jpeg, doc or docx files, with a maximum size of 20 MB per file).

The guidance also says: All exemptions apply from the point you register them.

Keeping your EPC, improvement invoices, installer quotes, and exemption evidence together helps when you need to show what you have done. Many landlords keep these documents alongside other compliance records, for example using a single checklist such as /landlord-compliance-check.