Do Minimum Energy Efficiency Standards (MEES) Apply to My Building?
The Minimum Energy Efficiency Standards (MEES) form part of the UK’s drive to improve energy efficiency across the property sector. For landlords, failing to understand whether MEES applies to their building can mean significant legal and financial consequences.
In this article, we explain what MEES are, which buildings are covered, the current legal baseline, possible exemptions, and what the future may hold.
What Are Minimum Energy Efficiency Standards?
MEES regulations were introduced by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. They were designed to tackle inefficient properties and reduce energy consumption.
These rules directly link property lettings to Energy Performance Certificate (EPC) ratings. A building must achieve a minimum EPC standard to be legally let. At present, this minimum standard is EPC rating E.
When Did MEES Take Effect?
The regulations were rolled out in stages:
- From 1 April 2018, landlords could not grant a new lease of a property rated below EPC E.
- From 1 April 2023, the rules extended to include continuing leases. This means existing tenancies must also comply, not just new lettings.
As of now, landlords cannot lawfully rent or continue to rent a commercial property that has an EPC rating of F or G, unless a valid exemption has been recorded.
Which Properties Do MEES Apply To?
MEES applies to most privately rented non-domestic properties that are legally required to have an EPC. These include offices, industrial units, retail premises, and many other commercial buildings.
Some categories are excluded:
- Buildings that do not require an EPC under existing rules include places of worship and temporary structures.
- Leases of less than six months, unless there is a right of renewal.
- Leases of 99 years or more.
If your building has an EPC and is rented out commercially, MEES will almost certainly apply.
EPC Ratings Explained
An EPC grades a building’s energy efficiency on a scale from A (most efficient) to G (least efficient).
- EPC E or above – Meets the current legal standard.
- EPC F or G – Classified as “substandard” and cannot be let without an exemption.
Landlords must act quickly if their property falls into the lower bands. Tenants also benefit from efficient premises, as running costs are typically lower.
Exemptions to MEES
While the rules are strict, there are circumstances where landlords may not be able to bring a property up to standard. In these cases, an exemption may be registered on the PRS Exemptions Register.
Types of exemptions include:
- All relevant improvements made – If all possible cost-effective measures have been carried out, but the building remains below EPC E.
- High cost exemption – When recommended improvements fail the “seven-year payback” test.
- Consent exemption – Where tenant, planning authority, or third-party consent is required but not granted.
- Devaluation exemption – When works would reduce the property’s market value by 5% or more, confirmed by an independent surveyor.
- Temporary exemption – For situations such as acquiring a property that is already substandard, giving the landlord time to act.
Exemptions usually last for five years and must be properly registered.
Penalties for Breach
Local authorities enforce MEES and have the power to impose financial penalties.
- If the breach lasts less than three months, the fine can be up to 10% of the property’s rateable value (capped at £50,000).
- If the breach continues for more than three months, the penalty can rise to 20% of the rateable value (capped at £150,000).
Non-compliant landlords may also face their details being published on the register, leading to reputational damage.
The Future of MEES
Although EPC E is the current minimum standard, the government has consulted on tightening MEES further. The proposed trajectory is:
- EPC C by 2027.
- EPC B by 2030.
These targets are not yet law, but landlords should expect much higher standards within the next decade. Waiting until deadlines approach could result in rushed, costly upgrades and potential void periods.
Steps Landlords Should Take Now
Landlords who wish to protect their assets and stay compliant should act early.
Review EPC ratings across your property portfolio. Identify which properties are at risk.
Commission updated EPCs where certificates are outdated or where improvements may already have been made.
Plan energy upgrades, such as LED lighting, improved insulation, modern heating systems, and renewable technologies.
Budget for long-term compliance. Upgrading to EPC C or B is not optional in the long run, and phased investment is more manageable than last-minute, urgent work.
Register exemptions where appropriate, ensuring full compliance with the law.
What MEES Means for Tenants
Tenants should also be aware of the impact of MEES. If a property is below standard, it cannot legally be rented out. This means:
- Tenants may gain leverage in negotiations with landlords.
- Occupying energy-efficient buildings can reduce utility bills.
- Properties requiring upgrades may cause temporary disruption.
Tenants should review lease terms closely, particularly where service charges could be used to recover the cost of upgrades.
Misconceptions About MEES
Several misunderstandings exist around the regulations:
- They only apply to new leases – Incorrect. Since April 2023, continuing leases are covered.
- Listed buildings are always exempt – Not necessarily. If work can be done without damaging the character, an EPC may still be required.
- Who pays the energy bills matters – False. MEES applies regardless of whether the landlord or tenant pays the bills.
Understanding the fundamental requirements is key to avoiding costly mistakes.
FAQs
Do MEES apply to residential as well as commercial buildings?
Yes. Residential lettings also fall under MEES, but the rules are structured separately.
What if my EPC has expired?
A valid EPC must be in place before a property can be let. Compliance is judged on the latest certificate.
Can tenants be made to carry out works?
The legal responsibility rests with the landlord, though cost-sharing arrangements may be agreed in leases.
Do MEES apply to owner-occupied buildings?
No. MEES only apply to rented properties. However, energy upgrades can still improve value and reduce running costs.
Is EPC B by 2030 confirmed as law?
Not yet, but government consultation strongly indicates it is the intended target. Landlords should plan accordingly.
Conclusion
Do Minimum Energy Efficiency Standards apply to your building? In nearly all cases, yes. If your property is privately rented and has an EPC, MEES will apply.
The current legal baseline is EPC E, and since April 2023, this applies to all continuing leases as well as new ones.
Exemptions exist, but they must be carefully registered. Non-compliance carries heavy financial and reputational risks.
Looking forward, landlords should prepare for much higher standards, with EPC B being the likely benchmark by 2030.
Landlords who act early will not only remain compliant but also protect the long-term value and marketability of their properties.
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Useful External Links
https://www.gov.uk/guidance/non-domestic-private-rented-property-minimum-energy-efficiency-standard
