How commercial property landlords can obtain an exemption from MEES (including mixed-use buildings)
As sustainability regulations tighten across the UK, commercial property landlords face increasing pressure to comply with the Minimum Energy Efficiency Standards (MEES). Since April 2023, it has been unlawful to let or continue letting non-domestic properties with an Energy Performance Certificate (EPC) rating below E, unless a valid exemption is registered. With further thresholds looming (C by 2027 and B by 2030), understanding how to obtain a MEES exemption is not just helpful, it’s essential.
This guide walks landlords through the types of exemptions available, the registration process, and strategic considerations, including for mixed-use buildings, to stay compliant while protecting asset value.
🏢 What is MEES and why does it matter?
MEES regulations were introduced under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. Their goal? To improve the energy performance of buildings and reduce carbon emissions in line with the UK’s net-zero targets.
For commercial landlords, MEES means:
You cannot let or continue to let a property with an EPC rating of F or G.
You must upgrade the property or register a valid exemption.
Non-compliance can result in fines up to £150,000, reputational damage, and a property becoming legally unlettable.
🏘️ Special considerations for mixed-use buildings
Mixed-use buildings: those combining residential and commercial elements, pose unique challenges under MEES:
Separate EPCs may be required for the residential and commercial portions, depending on how the building is let and occupied.
MEES applies only to the parts of the building that are legally required to have an EPC. If the commercial portion is let separately, it must meet MEES standards independently.
Listed status or structural constraints may affect the feasibility of upgrades, especially where improvements to one part of the building could impact another.
Service charge recovery for energy upgrades may be more complex, requiring clear lease provisions and tenant cooperation.
Landlords should consult with energy assessors to determine whether a single EPC or multiple EPCs are appropriate and ensure that each unit or demised area is assessed correctly.
🛑 When can a landlord apply for a MEES exemption?
MEES exemptions must be 
registered on the Private Rented Sector (PRS) Exemptions Register, and each exemption has specific criteria and documentation requirements.
1. Seven-year payback exemption
If the cost of recommended energy efficiency improvements cannot be recovered through energy savings within seven years, the landlord may qualify.
Applies to both standalone and mixed-use buildings.
Requires a detailed cost-benefit analysis excluding VAT.
2. All improvements made exemption
If all relevant cost-effective improvements have been made but the property still doesn’t meet the minimum EPC rating, this exemption applies.
Particularly relevant for older mixed-use buildings with limited upgrade potential.
3. Consent exemption
If the landlord cannot obtain consent from a third party (e.g. tenant, superior landlord, mortgagee, planning authority), they may be exempt.
Mixed-use buildings often involve multiple stakeholders, increasing the likelihood of consent issues.
4. Devaluation exemption
If an independent surveyor confirms that the required improvements would reduce the property’s market value by 5% or more, the landlord may be exempt.
Applies to the whole building or the relevant part—important for mixed-use buildings where commercial value may be disproportionately affected.
5. Wall insulation exemption
If wall insulation improvements are technically infeasible or would cause damage to the property, this exemption may apply.
Common in heritage mixed-use buildings or those with shared walls between residential and commercial units.
6. Temporary six-month exemption
This applies when a landlord:
Acquires a substandard property already let.
Renews a lease under the Landlord & Tenant Act 1954.
Grants a lease under court order or contractual obligation.
📝 How to register a MEES exemption
To register an exemption, 
landlords must:
Access the PRS exemptions register via the GOV.UK website.
Provide supporting evidence, including:
EPC reports
Independent surveyor assessments
Cost analysis documents
Lease agreements or consent refusal letters
Confirm ownership and property details.
Submit the exemption for review.
Each exemption is valid for five years and is personal to the landlord. If the property is sold, the new owner must re-register the exemption.
⚠️ Risks of non-compliance
Failing to comply with MEES or misusing exemptions can lead to:
Financial penalties:
Up to 10% of rateable value (capped at £50,000) for breaches under 3 months.
Up to 20% (capped at £150,000) for longer breaches.
Public “name and shame” listing.
Reduced rental income due to unlettable status.
Challenges during lease renewals or rent reviews.
🔍 Strategic considerations for landlords
To navigate MEES effectively, landlords should:
Review EPC ratings across their portfolio, including each unit in mixed-use buildings.
Plan upgrades early, especially for vacant or underutilised spaces.
Negotiate lease terms to retain access rights for improvements.
Budget for retrofit costs and explore funding options.
Consult legal and energy experts to assess exemption eligibility.
For mixed-use buildings, consider:
Clarifying service charge recovery for shared upgrades.
Segmenting EPC assessments to isolate compliant and non-compliant areas.
Engaging tenants collaboratively, especially where residential and commercial interests intersect.
🌱 Looking ahead: Future MEES deadlines
MEES thresholds are set to rise:
| Deadline | Requirement |
|---|---|
| 1 April 2025 | Valid EPC required for all lettings |
| 1 April 2027 | Minimum EPC rating of C |
| 1 April 2030 | Minimum EPC rating of B |
Landlords should act now to avoid last-minute compliance scrambles and rising contractor costs.
🧭 Final thoughts
MEES exemptions offer a lifeline for landlords facing technical, financial, or legal barriers to energy upgrades. But they’re not a free pass—they require active registration, robust evidence, and ongoing management.
Mixed-use buildings add complexity, but also opportunity. With careful planning, segmented assessments, and strategic lease structuring, landlords can protect their investments, maintain rental income, and contribute to a greener built environment.
