How domestic landlords in Surrey can obtain a MEES exemption
MEES – Minimum Energy Efficiency Standards – ensure that privately rented domestic properties meet minimum energy performance levels. As of 1 April 2020, landlords must offer new or renewed tenancies only on properties with an Energy Performance Certificate (EPC) rating of E or above. Failure to comply can lead to civil penalties of up to £5,000. However, a domestic MEES exemption provides a legal route when improvements are not feasible or cost-effective.
Understanding MEES for domestic landlords
MEES applies to landlords letting out domestic properties, including houses and flats. Your property’s EPC must be rated at least E before marketing for a new tenancy or lease renewal. Existing tenancies signed before the MEES deadline are ‘grandfathered’, but any new contract triggers compliance. Familiarity with MEES regulations protects you from penalties and helps maintain a competitive rental market in Surrey.
EPC ratings explained
An EPC rates a property’s energy efficiency from A (most efficient) to G (least efficient). Every domestic property requires a valid EPC registered on the National EPC Register when marketing to let. If your EPC lists F or G, you must upgrade your property or secure a formal exemption before letting. Obtaining an up-to-date EPC is the first critical step in exploring exemptions.
Types of MEES exemptions
MEES regulations recognise that certain properties cannot reach an E rating due to physical constraints, ownership issues, or disproportionate costs. The main domestic exemption categories are:
High Cost Improvements that increase the EPC to an E rating exceed the threshold of £3,500 including VAT.
Wall Insulation Exemption Solid wall insulation is technically unfeasible because of planning restrictions, conservation area designations, or structural issues.
Third-Party Consent Essential improvements require permissions over which you have no control – for example shared walls or roofs.
Listed Buildings National or locally listed building status prevents alterations that would improve energy efficiency.
Sale or Let Transitional Exemptions Properties already under contract for sale or lease renewal at the MEES deadline may qualify for limited-time exemption.
Each exemption has its own criteria, documentation and validity period. Understanding which category fits your situation is crucial.
Step-by-step guide to securing an exemption
Review your current EPC rating and ensure it is valid on the National EPC Register.
Identify the exemption category that applies to your property.
Gather supporting evidence:
Quotations for works and cost breakdowns
Structural surveys or planning consents
Historic building listings or conservation area documentation
Register your exemption on the PRS Exemptions Register:
Complete the online application form with details of your property and exemption grounds
Upload digital copies of all supporting documents
Pay the applicable registration fee (currently £21).
Receive your exemption certificate with a unique reference number to demonstrate compliance.
Ensure every step is accurately completed to avoid rejection or disputes.
High cost exemption in detail
If upgrading to an E rating would cost more than £3,500, the High Cost Exemption is often the most straightforward route. To apply:
Commission an EPC assessor to produce both a standard EPC and a Recommended Improvements Report.
Obtain detailed quotes for all recommended measures from at least two qualified contractors.
Calculate the total cost of works and confirm it exceeds the £3,500 threshold.
Compile documentation and file your exemption online.
Since this exemption expires after five years, review your property’s efficiency periodically, as rising energy prices and new technologies may shift cost-effectiveness.
Wall insulation and third-party consent exemptions
Certain properties—especially traditional Surrey cottages and period homes—face technical barriers to installing insulation. To qualify:
Secure a structural engineer’s report explaining why wall insulation is unfeasible.
Obtain planning permission refusals or conservation area consents denying insulation works.
Document scenarios where third-party agreements cannot be secured for shared structures.
These exemptions can last five years or until circumstances change. Keep all correspondence and approvals to demonstrate due diligence.
Listed building exemptions
Surrey is home to many heritage
properties where preserving historic fabric takes precedence. To claim a Listed Building Exemption:
Highlight the building’s listing status on your application.
Provide copies of listing entries and any relevant Historic England or local authority guidance.
Include evidence that proposed improvements conflict with regulations protecting architectural integrity.
This exemption remains valid for the entire lease term, but always reassess if new conservation solutions emerge.
Sale or let transitional exemptions
If you entered a sale or letting agreement before the MEES deadline but the tenancy or sale completes afterwards, you may secure a short-term exemption:
Supply a copy of the original contract showing the date of agreement.
Register on the PRS Exemptions Register within the specified window (typically within three months of listing).
This exemption lasts only until completion, so ensure you revisit efficiency requirements for any future lettings.
Maintaining compliance and record-keeping
Proper record-keeping is essential. Retain digital or hard copies of:
EPC certificates
Exemption applications and approvals
Contractor quotations and invoices
Structural or planning reports
Review your exemptions at least annually, especially if market conditions or legislation evolve. A proactive approach prevents unexpected liabilities.
Weighing exemption against upgrades
While exemptions offer relief, upgrading your property can yield long-term benefits:
Higher tenant demand and potentially increased rental yields
Reduced energy bills and carbon footprint
Future-proofing against tighter regulations
Consult Surrey Energy Ratings for tailored advice on cost-effective improvements, from air source heat pumps to cavity wall upgrades.
Why choose Surrey Energy Ratings?
At Surrey Energy Ratings, we understand the local landscape—from historic Surrey Hills cottages to modern flats near Leatherhead station. Our services include:
Professional EPC assessments and detailed improvement reports
Expert guidance on MEES compliance and exemption strategies
Bespoke sustainability plans to enhance comfort and marketability
Partner with us to turn regulatory challenges into opportunities for growth.
Conclusion
Navigating MEES exemptions requires a clear understanding of regulation, thorough documentation and strategic planning. Whether you face high upgrade costs, are stewards of a historic Surrey home, or simply need more time to assess viable improvements, an exemption can provide essential breathing space. Remember to keep accurate records, review your status regularly, and consider the value of proactive upgrades. Surrey Energy Ratings stands ready to guide you every step of the way—book your consultation today and safeguard your rental investments.
