Minimum Energy Efficiency Standards (MEES Regulations) Explained

If you’re a landlord or letting agent in the residential market, you’re likely to sometimes feel overwhelmed with the number of statutory and regulatory standards you are required to comply with.

As Energy Efficiency experts, we thought we’d try and help by producing this short blog on how you can stay ahead of the current changes, and the proposed updates to the minimum energy efficiency rating for your EPCs (Energy Performance Certificates).

Who needs an EPC?

If you’re looking to sell or let a property in the UK, you will need an EPC. Since the 1st April 2020, your EPC will need improving if it has shown a rating of F or G, or you will need to apply to the PRS Exemptions Register at the following link: https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance#update-16-may-2025-exemptions-register-access

What improvements do I need to make?

The MEES regulations require landlords to achieve an E rating on their EPC before any new tenancies are created. This only applies to rental properties; those being sold are not under the same regulatory requirements, however a lower EPC rating can affect the saleability or value of your property. There are circumstances where an exemption can be applied for, e.g. if the property is listed and the energy efficiency improvements are likely to impact the architectural significance of the building.

How much will improvements cost?

The costs of making improvements to your property, e.g. adding loft insulation, insulating solid walls, installing solar PV panels, can vary based on a number of factors. The MEES regulations require landlords to spend up to £3,500 making the improvements required to achieve an E rating. Should landlords not wish to spend further funds improving the property, then they can spend up to the cap and apply for an all-improvements-made exemption.

Is funding available towards the costs of the improvements?

There are a number of Government Funding Schemes in operation that can help with the costs of making improvements to your rental portfolio.

• The ECO4 scheme has been in operation for a number of years and allows landlords to access funding where their tenant is in receipt of benefits or qualifies under the LA Flex Scheme (Local Authority Flexible Eligibility).

• The Great British Insulation Scheme is a more recent scheme aimed to help landlords and tenants access funding for insulation improvements to their homes.

• Labour have also announced the Warmer Homes Scheme, which aims to support landlords by funding 100% of the costs for improvements to their first property and 50% funded measures for the remainder of their portfolio. The scheme is not yet in operation, so watch this space for further details as we come to understand them.

Should you be able to secure funding, then the cost cap will no longer apply. If you can access funding but the funding does not cover the cost of all of the improvements, you will be required to spend up to the cost cap (£3,500) in addition to any funding. If the funding and cost cap do not cover the cost of all of the improvements, then you can make an application to the PRS register for an exemption.

What if I don’t make the improvements?

In short, you’ll be breaking the law. The local authority can prohibit the letting of your property. If you fail to comply and continue to let your property, the total value of fines could be up to £5,000.

Are the MEES likely to change?

Yes. Current government proposals may see the regulations change to require all rented properties to be an EPC rating of C and above by 2030.

What should I do if I have properties that don’t meet the MEES?

Take action now. Government-funded retrofit schemes have generally reduced the amount of help for landlords over the periods that the schemes have run. Here’s a quick process to help you work out what is right for you and your portfolio:

• Check your EPC. When was the last time you checked the EPC? Has anything changed since it was produced? Many tenants may request improvements without you knowing, meaning your property has been upgraded; it just needs a new EPC to reflect the changes.

• Speak to a Retrofit Organisation. The Retrofit industry understands the need to improve EPC ratings and also funding schemes that may be able to help with the cost. A Retrofit Assessment can identify the potential improvements required to meet the MEES, indicative costs of any improvements, as well as any building condition issues that may need resolving prior to retrofit improvements.

• Work with a PAS-accredited organisation. PAS2035 is the overarching standards framework for retrofit. Registered organisations are required to adhere to a strict code of practice and provide insurance-backed guarantees that protect the building owner and occupants.