CSE is working with the TDS Charitable Foundation to advise and support landlords of privately rented properties to understand and meet their obligations under the Minimum Energy Efficiency Standards (MEES) regulations.

These stipulate that privately rented properties must have a minimum EPC rating of E before they are let. (The government website has a useful primer on EPCs.)

Although the government has delayed enforcing the updated MEES regulations, they’ll be implemented eventually. It’s in your best interest to ensure your home is as energy efficient as possible as soon as you can. Get ahead by following our guidance below and using our support service. You can also make the most of available funding to save money on your home improvements.

Avoiding fuel poverty

The aim of MEES is to reduce the number of private tenants living in fuel poverty and miserable, unhealthy homes by improving the energy efficiency of privately rented properties. If a property is well insulated, for instance, the cold will have less impact on the health of the residents. Cold homes can lead to serious health problems and can even result in death.

In short, MEES require a property to have a minimum energy performance rating of E. An EPC will give an energy performance rating for a property, which will be somewhere from band A (most efficient) to G (least efficient). Unless exempt from MEES, a property cannot be rented out if it has an energy performance rating below E (that is, bands F or G).

What support does CSE offer to landlords?

This advice is for private landlords renting out a domestic property on one of the following tenancy types:

• An assured tenancy.
• A regulated tenancy.
• A domestic agricultural tenancy.

As most tenancies in England and Wales are “assured shorthold” tenancies, this guidance is likely relevant to you. However, to help you assess the type of tenancy on which you have rented out your property, check the information on the government website. If you’re still unsure, seek independent legal advice.

With CSE’s help, you can:

• Understand the MEES and what you have to do to comply.
• Check the EPC of your property and understand the recommendations listed.
• Give tailored advice on what you can do in your properties to make them more energy efficient. This includes advice on energy saving measures and reducing damp and mould.
• Assess whether you are eligible for any funding for installing energy efficiency measures. Where appropriate, we can make referrals to funded schemes for you.

Important information for landlords

Here is a list of frequently asked questions and what you should know about your property and MEES. Click the links to be taken to each section:

Do MEES apply to my property?
Does my property need an EPC?
What improvements does my property need?
Is there a cost cap?
What funding is available?
Are there any exemptions?
How to register an exemption
Penalties for non-compliance
Helpful resources and reading

Do MEES apply to my property?

Regardless of the current energy performance of the property you are renting out, the first thing to consider is that your tenants would benefit from its improvement. For instance, as mentioned above, low energy efficiency can result in life-altering health conditions. A higher energy efficiency can result in less miserable living conditions and less fuel poverty.

Specifically regarding MEES, unless an exemption applies, if the property you’re renting out on one of the tenancy types mentioned at the start of this guidance has, or requires, an EPC it must meet the standards.

Does my property need an EPC?

Generally speaking, buildings require an EPC if they are being sold or rented out. The exceptions are:

• A protected building as part of a designated environment or because of their special architectural or historical merit (for example, listed buildings or buildings within a conservation area) where compliance with minimum energy performance requirements would unacceptably alter their character or appearance (if you are unsure if works would unacceptably alter the character or appearance of a building, seek advice from the council’s conservation officer (find your council).
• Residential buildings that are intended to be used less than four months of the year.
• Furnished holiday lets, as defined by HMRC, that are let for less than four months in any 12-month period and the occupant is not responsible for the energy costs.
• An individual room rented out as part of, for example, a house of multiple occupancy (HMO) or to a lodger (the whole building will require an EPC if sold or rented out, however, and, even if the property is rented out as a HMO, MEES regulations apply if the building already has an EPC).
• Temporary buildings with a planned time of use of two years or less.
• Stand-alone buildings (that is, buildings entirely detached from any other building) with a total useful floor area of less than 50m².

EPCs are valid for 10 years. A new EPC is required after 10 years if the building is rented out on a new tenancy or sold. You can search for your property’s current EPC on the government’s EPC register. The government also have information on getting a new EPC.

If you’re unsure if your property requires an EPC, seek specialist advice.

What improvements does my property need?

You cannot make just any improvements to a property to meet MEES. You must carry out relevant energy efficiency improvements.

The easiest way of knowing what improvements are relevant is through an energy efficiency recommendations report (including the recommendations report accompanying a valid EPC) or a report prepared by a surveyor. The image below is an example of the recommendations for an EPC:

Guidance from the Energy Saving Trust on EPCs says “[t]he recommended measures are shown in order of importance, and the energy efficiency improvements figures are based on making the improvements in that order. Of course, you might not be able to complete them all, or in the order listed, but it’s a good guide”. Appendix D of government’s The Domestic Private Rented Property Minimum Standard document (pp. 96-98) lists energy efficiency measures which might be recommended on an EPC for a property.

Is there a cost cap?

Improving the energy efficiency of your property as much as possible is beneficial for both the people for whom it is their home and the environment. MEES are met when the energy efficiency of your property is band E or you have attempted to raised it to an E for no more than £3,500 (including VAT) of your own money. You can exceed this amount – and are likely to if funding is involved (the cost cap does not apply to money that comes from third-party funding, such as that from, for instance, the Energy Company Obligation (ECO).

If no funding is available and, without it, it will cost more than £3,500 of your own money to raise the energy efficiency of the property to an E; or if no funding is available, you’ve spent £3,500 of your own money and the property is still below band E, you can apply for an exemption from having to meet MEES and can continue to rent out a substandard property.

What funding is available?

The best way to find out about funding for home energy improvements is to ask a local energy advice organisation, if there is one.

To find a local organisation, try searching ‘home energy’ on a council’s website where the rental property’s located. Alternatively, you could try searching on the internet for ‘energy advice’ and the geographic area the property is in. If there is no local organisation, you could try a national one. The government has a service you could try, or you could contact one of the following:

• Energy Saving Trust (England)
• Nest (Wales)
• Home Energy Scotland
• Northern Ireland Energy Advice
• Energy Advice London

Some national funding schemes you could investigate are:

• Connected for Warmth: funding for loft insulation, cavity wall insulation and air source heat pumps.
• Energy Company Obligation (ECO): funding for insulation, heating systems and renewable technologies.
• Boiler Upgrade Scheme (BUS): a discount on the installation of heat pumps or biomass boilers.

Some common local schemes you could investigate are:

• ECO Flex: funding for insulation, heating systems and renewable technologies. This is another route into ECO funding, with alternative eligibility criteria. Not all councils are part of the scheme. Contact the relevant council to find out if they are part of it.
• Home Upgrade Grant (HUG): funding for insulation, heating systems and renewable technologies. Not all councils are part of the scheme but here is a list of participating councils. Even if they’re not listed, it’s best to contact the relevant council to find out if they have a HUG scheme.

Are there any exemptions?

CSE can advise you on MEES exemptions. These apply to properties that need to comply with the MEES regulations but cannot reasonably achieve an EPC rating of band E or above. (You can read government information about MEES exemptions by clicking here).

If a substandard property meets the criteria for an exemption, it can still be rented out once the exemption has been registered on the exemption register. Different evidence, detailed below, is required to register different exemptions, but the following information is required for all exemptions:

• Address of the property.
• Type of exemption you are registering.
• Copy of a valid EPC for the property.

In brief, the exemptions are as follows:

‘High cost’ exemption

Apply for this if no improvements can be made because the cost of making even the cheapest recommended improvement would exceed £3,500 (inc. VAT). The exemption lasts five years, after which you must try again to improve the property’s EPC rating to E. If it is still not possible, you can apply for a further exemption. Additional information required to register this exemption:

• Three quotes from qualified installers for purchasing and installing the cheapest recommended measure, demonstrating the cost would exceed £3,500 (including VAT).
• Written confirmation that you are satisfied that the measure exceeds £3,500 (including VAT).

‘All improvements made’ exemption

Apply for this when all the “relevant energy efficiency improvements” for the property have been made but the property’s EPC rating remains below an E, or there are none that can be made. The exemption lasts five years, after which you must try again to improve the property’s EPC rating to E. If it is still not possible, you can apply for a further exemption. Additional information required to register this exemption:

• If you replied on a report prepared by a surveyor, for example, rather than the recommendations on an EPC, you must provide a copy of that report.
• Details, including date of installation, of all recommended improvements you made at the property (unless none were recommended).

‘Wall insulation’ exemption

Apply for this if the only relevant improvements for the property are cavity, external or internal wall insulation and expert advice has concluded that the measure is not appropriate for the property due to its potential negative impact on the fabric or structure of the property. The exemption lasts five years, after which you must try again to improve the property’s EPC rating to E. If it is still not possible, you can apply for a further exemption. Additional information required to register this exemption:

• A copy of the written opinion of a relevant expert stating that the property cannot be improved to an EPC E because a recommended wall insulation measure would have a negative impact on the property (or the building of which it is part).

‘Consent’ exemption

Apply for this if third-party consent is legally required to carry out the improvements and, despite reasonable efforts, it has not been possible to obtain it, or consent was given subject to conditions that could not reasonably be met. The third-party could be, for instance, a tenant, a superior landlord, a mortgagee a freeholder, etc., or planning or listed building consent. Information on when and where consent is required will be contained within relevant documentation for the property, for example in the landlord’s lease or mortgage condition documents, or within the current tenancy agreement.

The exemption lasts five years, or, where lack of tenant agreement was the issue, until the current tenancy agreement ends or is assigned to a new tenant – after which you must try again to improve the property’s EPC rating to E. If it is still not possible, you can apply for a further exemption. The landlord must be able to demonstrate that reasonable effort has been made the seek consent.

‘Devaluation’ exemption

Apply for this if expert advice has concluded that the installation of specific energy efficiency measures would reduce the market value of the property, or the building it forms part of, by more than five per cent. The exemption lasts five years, after which you must try again to improve the property’s EPC rating to E. If it is still not possible, you can apply for a further exemption. Additional information required to register this exemption:

• A copy of the report prepared by an independent RICS surveyor that provides evidence that the installation of the recommended measures would devalue to property by more than five per cent.

‘New landlord’ exemption

If a person becomes a landlord under certain circumstances, they can apply for this exemption. These limited circumstances are where a person may have become a landlord suddenly and as such it would be inappropriate or unreasonable for them to be required to comply with MEES immediately. The circumstances are:

• The grant of a lease due to a contractual obligation (this is intended to cover a situation where a contract was entered into on a contingent basis, regardless of whether it was entered into before or after the Regulations came into force).
• Where the tenant becomes insolvent and the landlord has been the tenant’s guarantor (in this situation, the tenant’s guarantor becomes a landlord when taking over the lease).
• The landlord has been a guarantor, or a former tenant, who has exercised the right to obtain an overriding lease of a property under section 19 of the Landlord and Tenant (Covenants) Act 1995 (for the avoidance of doubt, a “guarantor” who exercises this right under the 1995 Act is the guarantor of a former tenant).
• A new lease has been deemed created by operation of law.
• A new lease has been granted under Part 2 of the Landlord and Tenant Act 1954.
• A new lease has been granted by a court order, other than under Part 2 of the Landlord and Tenant Act 1954.

A landlord is advised to seek legal advice if they are unsure if the “new landlord” exemption applies to their circumstance. The exemption lasts six months, after which, if you wish to continue renting out the property, you must try to improve the property’s EPC rating to E. If it is still not possible, you can apply for a further exemption.

How to register an exemption

You can register an exemption on the government website here: prsregister.beis.gov.uk/NdsBeisUi/used-service-before Alternatively, if you need assistance registering an exemption, you can contact the Assisted Digital Service by email (esnz@cust-serv-details.com) or phone (0800 098 7950) (be advised, this isn’t a MEES adviceline; it supports people through the process of registering an exemption).

Penalties for non-compliance

Councils can serve a financial penalty up to 18 months after a breach of MEES. They can also publish details of the breach for at least 12 months.

The maximum financial penalty amounts apply per property and per breach of the regulations. They are:

• Up to £2,000 for renting out a non-compliant property for less than 3 months.
• Up to £4,000 for renting out a non-compliant property for 3 months or more.
• Up to £1,000 for providing false or misleading information on the PRS Exemptions Register.
• Up to £2,000 for failure to comply with a compliance notice.

The maximum amount you can be fined per property is £5,000 in total.

Helpful resources and reading

For more information about MEES, have a look at these resources:

• Domestic private rented property: minimum energy efficiency standard – landlord guidance
• The Domestic Private Rented Property Minimum Standard document, particularly the Introduction (pp. 8-11), Appendix B (pp. 92-93), Properties covered by the minimum level of energy efficiency provisions and Relevant tenancies (pp. 14-15), Energy Performance Certificate (EPC) ratings (pp.16-24), Appendix D (pp. 96-98), Relevant energy efficiency improvements and recommendations reports (pp. 35-37), Landlord self-funding and the cost cap (pp. 40-41), Exclusions and Exemptions (pp. 56-68), The PRS Exemption Register (pp. 69-77), Exemptions Register screenshots (pp. 107-115), Enforcement of the Domestic Minimum Level of Energy Efficiency (pp. 78-89).
• A guide to Energy Performance Certificates for the marketing, sale and let of dwellings: EPC obligations.
• Energy Saving’s Trust Guide to Energy Performance Certificates.