EPC Exemptions Explained: When MEES Does Not Apply

Most landlords are now familiar with the basic Minimum Energy Efficiency Standards, commonly known as MEES. In England and Wales, a relevant privately rented home must generally achieve an EPC rating of at least E before it can be let or continue to be let. But what happens when bringing a property up to an E simply is not practical, affordable or possible? This is where MEES exemptions become important. An exemption is not a way of simply opting out of the regulations. There are specific circumstances in which a landlord can legally continue to let an F or G rated property, but the relevant conditions must be met, appropriate evidence must be obtained and the exemption normally needs to be registered on the PRS Exemptions Register. There is also an important difference between a property that is outside the scope of MEES altogether and one that is covered by MEES but qualifies for an exemption. Understanding that distinction can prevent landlords from carrying out unnecessary work while also avoiding the risk of incorrectly assuming that no action is required.

Does MEES Apply To Every Rental Property?

No. Before considering an exemption, a landlord should first establish whether the property is actually covered by the regulations.

Current government guidance states that domestic MEES applies to privately rented properties that are let under specified forms of domestic tenancy and are legally required to have an Energy Performance Certificate.

These include assured tenancies, regulated tenancies and domestic agricultural tenancies.

If a property does not fall within the relevant tenancy arrangements, or is not legally required to have an EPC, it may fall outside the MEES regulations altogether.

If that is the case, the landlord does not register a MEES exemption simply because the EPC is F or G. The exemption system is designed for properties that are covered by MEES but cannot meet the required minimum standard for one of the recognised reasons.

This is why landlords should establish the property’s EPC and tenancy position before assuming an exemption is necessary.

What Is The Current Minimum Standard?

For properties covered by the domestic MEES regulations, the current minimum remains EPC E.

Since 1 April 2020, the rules have applied not only when a new tenancy is granted but also to relevant existing privately rented homes.

A covered property rated F or G must therefore normally be improved to at least E before it can legally be let or continue to be let, unless a valid exemption applies.

The current domestic regulations operate with a landlord cost cap of £3,500 including VAT. If reaching E would require spending more than this, the rules do not simply allow the landlord to do nothing. The landlord may still be required to carry out relevant recommended improvements that can be completed within the cost cap before relying upon an exemption.

The All Relevant Improvements Made Exemption

One of the most important exemptions applies where a landlord has completed all the relevant energy-efficiency improvements that can reasonably be required under the regulations, but the property still remains below EPC E.

For example, a landlord may complete qualifying improvements within the current £3,500 cost cap and obtain another EPC, only to find that the property remains at F.

Provided the requirements have been satisfied, an “all relevant improvements made” exemption can potentially be registered.

Evidence is important. The landlord may rely upon recommendations contained in the EPC or, where appropriate, another suitable report. Records of the improvements completed and their installation dates should be retained.

Once registered, this exemption normally lasts for five years. When it expires, the position must be reassessed.

The High-Cost Exemption

A different situation arises where even the cheapest recommended improvement would cost more than the current £3,500 including VAT cap. In that situation, a high-cost exemption may be available.

This cannot be based simply on a landlord believing the work looks expensive. Current government guidance requires three quotations from qualified installers demonstrating that purchasing and installing the cheapest recommended measure would exceed £3,500 including VAT. The evidence is then used to support registration of the exemption.

A high-cost exemption normally lasts for five years, after which the landlord must reconsider whether the property can be brought up to the required standard.

Wall Insulation And Suitable Properties

Some older buildings can present particular problems when wall insulation is recommended.

Internal, external or cavity wall insulation may sometimes be inappropriate because of the building’s construction, condition or moisture behaviour. Poorly specified insulation can create risks rather than improvements.

The regulations therefore provide a wall insulation exemption where the applicable conditions are met.

The landlord needs written expert advice showing that the recommended wall insulation would have a negative effect on the fabric or structure of the property, or on the building of which it forms part.

It is not sufficient simply to say that a solid-wall property is old or that the landlord does not want to install insulation. The exemption needs to be supported by the appropriate professional evidence. Once correctly registered, the exemption normally lasts for five years.

What If The Landlord Cannot Get Consent?

Energy-efficiency improvements are not always entirely within a landlord’s control. A leasehold flat may require the freeholder’s permission for certain works. External alterations may require planning consent. Mortgage conditions can sometimes require lender approval, and in some situations the tenant’s consent may also be necessary.

Where a relevant improvement requires third-party consent and the landlord has made reasonable efforts to obtain it but consent is refused, a third-party consent exemption may be available.

The landlord must retain evidence showing that consent was actually required and sought and that it was either refused or granted subject to a condition that could not reasonably be met.

These exemptions normally last for five years. However, where the problem is specifically a lack of consent from the current tenant, the exemption only lasts for as long as that tenant remains the tenant. The position therefore needs to be reconsidered when the tenancy changes.

Registering The Exemption Matters

A landlord should not assume that having the evidence for an exemption is enough. Where the property is covered by MEES, the exemption must be correctly registered on the PRS Exemptions Register before the landlord can rely upon it. The register records the property, landlord and type of exemption, together with the supporting evidence required for that particular exemption.

Most exemptions do not automatically transfer when a property is sold. A new landlord must establish their own compliance position and, where appropriate, register a new exemption.

Landlords should therefore treat exemption documents as important compliance records rather than simply paperwork to be dealt with after a problem arises.

What About The 2030 Changes?

The government confirmed in January 2026 that it intends to introduce substantially higher domestic private rental energy-efficiency standards from 1 October 2030. The future system is expected to use the new EPC methodology and metrics, with the government’s stated aim being an EPC C-equivalent standard for privately rented homes. The government has also set out plans for a higher cost cap and changes to the exemption and enforcement system.

However, these future requirements require the necessary legislation and implementation arrangements. For landlords dealing with an F or G property today, the current EPC E rules and existing exemption system remain the immediate legal requirements.

At the same time, it makes sense to consider the direction of future regulation when substantial refurbishment work is already being planned. Spending money simply to scrape through today’s minimum may not always provide the best long-term result.

Conclusion

MEES exemptions provide an important safeguard for landlords where achieving the minimum EPC standard is genuinely impractical, excessively expensive or prevented by circumstances outside their control. But an exemption is not automatic.

The correct exemption must apply, the necessary evidence must be obtained and the exemption must be properly registered. In many cases, relevant energy-efficiency improvements will still need to be carried out before an exemption can be relied upon.

An EPC assessment can help establish why a property has received a low rating and which recommendations are affecting it before money is committed to improvement work.

EPC Pro provides domestic EPC assessments and practical guidance for landlords across London and surrounding areas. If you have an F or G rated rental property and need to understand the most appropriate route towards compliance, contact EPC Pro to arrange an assessment.

Ensure your property is on the path to energy efficiency by scheduling your EPC assessment with EPC Pro. 

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