Minimum Energy Efficiency Standards (MEES) Exemptions
All the relevant energy efficiency improvements for the property have been completed Rating remains below an EPC Band E
Where energy efficiency improvements to the property do not result in a SAP score of 39 (Band E) after the landlord has receipts to evidence a spend of up to £3,500 (inclusive of VAT)
Where a certain measure cannot be installed due to its negative impact on the building’s fabric/structure e.g. wall Insulation
Third party consent cannot be obtained - this could include planning permission or consent from the tenant or superior landlord
Installation of certain measures would reduce the property’s market value by >5% - this would need to be evidenced by Chartered Surveyor’s Report
EXEMPTIONS LAST FOR 5 YEARS AFTER WHICH TIME THE PROCESS STARTS AGAIN.
Fines & Penalties
letting a sub-standard property for less than 3 months - up to £2,000
letting a sub-standard property for 3 months or more, up to £4,000
registering false or misleading information on the PRS Exemptions Register - up to £1,000
failing to comply with a compliance notice - up to £2,000
Total amount of financial penalty per property (and per breach) cannot, under current legislation, be more than £5,000.
The penalties may also be accompanied by publication of the specific breach on the public exemptions register.
Enforcement
By Local Authorities, as either Environmental Health or Trading Standards.
Where an EPC is legally required for a property, Trading Standards are responsible for enforcing the regulations requiring an EPC to be made available.
Financing
Local authority funding
Current ECO scheme access via energy company
ECO 3 Retrofit scheme
Landlords right of appeal if he or she believes any of the following apply:
the penalty notice was based on an error of fact or an error of law
the penalty notice does not comply with a requirement imposed by the Regulations
it was inappropriate to serve a penalty notice on them under the particular circumstances
Combined third-party funding and self-funding
When landlord is able to secure some third-party funding, but less than £3,500, and not enough to improve the property to EPC E. In such cases, the Regulations require the landlord to top up this third-party funding with their own funding, provided the combined value of the funding (third-party and self-funding) does not exceed the £3,500 cap (inclusive of VAT). If this combined funding is sufficient to improve the property to EPC E then the landlord will need to take no further action. If the combined funding is insufficient to improve the property to E then the landlord should install all measures which can be installed up to value of £3,500, and then register an exemption on the basis that “all relevant improvements have been installed and the property remains below E”
Below is a how we have previously helped landlords with the MEES in mind:
We would be pleased to assist you in future proofing your portfolio to ensure compliance with the proposed MEES standard of C69 by April 2025. To achieve this, we use the following tried and tested 8 stage process which will ensure each property has either qualified as MEES compliant or puts you in a position to apply for an exemption.
Stage 1 - Collation of the available information
Existing property portfolio details are entered into an Excel workbook. This will detail the status of all the properties, including current rating, shortfall, expiration date and a link to existing EPC. The portfolio will then be prioritised as follows: -
A. Very urgent no EPC or EPC has expired.
B. Urgent current EPC below Band C no access to modelling data.
C. Important current EPC below Band C with access to modelling data.
D. No action required valid EPC which meets MEES requirement.
A sample of the model results table can be provided on request, we provide one of these for each property that needs to be modelled, the example shows which measures the owner selected they also used the pricing column to keep track of their spending, this may be especially useful when applying for an exemption.
Stage 2 - Carry out an EPC assessment.
Draft EPC is produced to establish the gap between the current rating and the C69 target. If the property meets the required rating of C69 and our invoice has been settled the EPC will be lodged and the process is complete. If below C69 we will inform you and proceed to Stage 3.
Stage 3 - Draft EPC appraisal
At this point we will assess the Draft EPC for obvious easy to fix measures that will meet a current short fall, such as low energy lamps, hot water cylinder insulation, etc. proceed to Stage 4 or Stage 7 as appropriate.
Stage 4 - EPC Modelling
We will model all viable measures for the property using the existing draft EPC. Once the invoice has been settled you will be presented with a comprehensive list of measures and the number of points that the measure will affect the rating by together with the resulting change to the score.
Stage 5 - Model appraisal
You will have the information necessary to make an informed decision about which measures you intend implementing. It’s this point that we would suggest that we investigate what the available funding is available for which measures.
Stage 6 - Proposed Draft EPC
When we have your decision, (emailed confirmation of which measures will be implemented) we will provide a draft EPC which will reflect the measures you have selected.
Stage 7 - Implementation of measures
Throughout the implementation process we will liaise with you and your tradespeople regarding the evidence requirement, prior to lodgement.
Stage 8 - EPC Lodged
Once the acceptable evidence of the improvements has been received the EPC will be lodged, you will then be able to access it via the EPC Register. Even if the rating is below the target C69 the EPC needs to be lodged as part of the exemption process. Full information on this may be accessed at Domestic private rented property: minimum energy efficiency standard - landlord guidance - GOV.UK (www.gov.uk)
I hope this explains how we have assisted may other letting agents and private landlords achieve compliance with MEES legislation and future proof their portfolios against the proposed changes to the rules in 2025. We have the capacity to proceed with both the stage 1 and stage 3 properties with immediate effect.
I will call you shortly to answer any questions you may have, if you have any pressing questions or require urgent support, please don’t hesitate to contact me, We have the capacity to start scheduling the assessments in, once we have the tenants contact details or you have organised access.
Suggested course of action: A’s and B’s
Stage 1 properties. Before we can proceed please provide tenants contact details so we can arrange access to the property to provide Draft EPC and establish if modelling is required.
C’s
Stage 3 properties. Model EPC, produce list of viable measures to improve rating. For further information on how the service can work for you, please contact us