Navigating MEES: Current and future requirements for domestic landlords
As energy efficiency continues to climb the policy agenda, the Minimum Energy EfficiencyStandards (MEES) reshape the domestic rental market. Landlords must familiarise themselves with current obligations and prepare for forthcoming enhancements. This blog explores where MEES stands today, anticipated regulatory shifts, and concrete steps Surrey landlords can take to stay compliant, reduce energy bills, and attract quality tenants.
Understanding MEES: The basics
Introduced under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, MEES establishes a minimum Energy Performance Certificate (EPC) rating of E for privately rented domestic properties. Since April 2018, it has been unlawful to grant new tenancies for properties below EPC band E. From April 2020, this prohibition extended to all existing tenancies.
MEES aims to improve the energy efficiency of rented homes, cutting carbon emissions while lowering fuel costs for tenants. Landlords must obtain a valid EPC, identify required improvements, and ensure the property meets or exceeds the minimum rating before letting.
Current compliance requirements
Landlords navigating MEES today must address several key responsibilities:
Obtain a valid EPC: Conduct an assessment by an accredited Domestic Energy Assessor. The EPC remains valid for ten years.
Make cost-effective improvements: Pursue all recommended measures with a payback period of up to seven years, capped at a maximum landlord contribution of £3,500 (including VAT). If measures exceed this threshold, landlords can issue a valid exemption notice.
Serve compliance notices: Demonstrate ongoing compliance by providing tenants and local authorities with an EPC and, where relevant, an exemption notice.
Monitor enforcement actions: Local trading standards can impose penalties up to £5,000 for non-compliance, scaled according to property value.
These requirements represent the current baseline. However, government consultations suggest a tightening of standards in the coming years.
Exemptions and special cases
MEES regulations carve out specific exemptions, allowing landlords to delay improvements under particular circumstances:
High cost of improvements: When recommended measures exceed £3,500 in total cost, as demonstrated by valid quotes.
Property devaluation: If improvements would devalue the property by more than 5% of its capital value, certified by an independent surveyor.
Landlord hardship: Where compliance would cause undue financial burden, subject to a robust hardship test.
Temporary exemptions: For buildings where conservation area status or listed building classification restricts modifications.
Exemptions must be registered on the national PRS Exemptions Register, and landlords must renew notices every five years to maintain legal protection.
Enforcement: Penalties and compliance checks
Local authorities enforce MEES through spot checks and tenant complaints. Infractions incur civil penalties, with a sliding scale:
Property Value (approx.) | Maximum Penalty |
---|---|
Up to £50,000 | £2,500 |
£50,001–£150,000 | £5,000 |
Above £150,000 | Up to £10,000 |
Landlords risk reputational damage, enforcement notices, and financial fines if they fail to heed MEES obligations. Tenants can request EPC copies, and trading standards can audit property portfolios to ensure compliance.
The future of MEES: Coming changes
The UK government’s net-zero ambitions signal stricter standards for rented homes. Key proposals under consultation include:
Raising the minimum EPC band: Plans to uplift the threshold to EPC band C by 2025 for new tenancies, and by 2028 for all tenancies. This challenge will make many currently compliant E-rated properties fall short overnight.
Increasing the spend cap: Extending the maximum allowable landlord contribution beyond £3,500 to reflect rising material and labour costs.
Broadening scope: Potential inclusion of new property types, such as Houses in Multiple Occupation (HMOs) and park homes, under standard MEES treatment.
Linking to green finance: Incentivising landlords with low-interest green loans, grants, and tax reliefs to accelerate energy-saving upgrades.
The proposed timetable for these changes illustrates the ramp-up:
Timeline | New requirement |
---|---|
April 2025 | EPC band C for new tenancies |
April 2028 | EPC band C for all tenancies |
Post-2030 | Consultation on band B minimums |
Landlords should anticipate these escalations and plan investments accordingly.
Preparing your property for future MEES
To stay ahead, Surrey landlords can adopt a proactive retrofit strategy:
Conduct a detailed retrofit audit Go beyond EPC basics. A Whole-Home Plan identifies deep retrofit opportunities such as external wall insulation, heat pump installations, or solar PV arrays.
Phased improvement program Spread costs over multiple financial years by implementing upgrades in stages, focusing first on low-cost, high-impact measures:
Loft insulation
Low-energy lighting
Draught proofing
Seek funding and incentives Explore Government grants such as the Boiler Upgrade Scheme or Sustainable Warmth Competition. Local authorities often run borough-specific schemes in Surrey.
Engage trusted contractors Work with MCS-certified installers for renewable technologies and TrustMark-registered traders for insulation and heat pumps. Quality workmanship reinforces long-term performance.
Communicate with tenants Highlight upcoming improvements in tenancy renewals and marketing materials. Energy-efficient homes attract eco-conscious renters and can command higher rents.
By mapping out a multi-year retrofit plan, landlords can smooth expenditure, reduce tenant disruption, and secure compliance ahead of regulatory deadlines.
Unlocking value: Beyond compliance
Meeting MEES is not merely a legal hurdle—it presents an opportunity to future-proof your investment and boost asset value:
Reduced void periods: Energy-efficient properties attract and retain tenants more readily.
Higher rental yields: Eco-friendly upgrades can justify premium rents of 5–10%.
Enhanced asset valuation: Mortgage lenders increasingly factor in EPC ratings when valuing buy-to-let portfolios.
Carbon footprint reduction: Aligning with Surrey’s sustainability targets demonstrates corporate social responsibility and can support green finance applications.
Viewing MEES through a value-creation lens transforms costly upgrades into strategic investments that pay dividends in tenant satisfaction, financial returns, and environmental impact.
Conclusion
Navigating MEES demands awareness of current duties, EPC band E minimums, cost-effective measures and registered exemptions, while preparing for more stringent requirements on the horizon. By commissioning detailed audits, phasing improvements, and tapping funding streams, Surrey landlords can turn compliance into competitive advantage.
Ready to embark on your MEES journey? Surrey Energy Ratings offers tailored EPC assessments and guidance on grants and exemptions. Contact us today to future-proof your rental portfolio, lower your carbon footprint and secure peace of mind as MEES evolves.