MEES Exemptions for Commercial Property: The Register and the Rules
- A MEES exemption lets you let a sub-standard commercial property lawfully, but only if it genuinely qualifies and you register it on the PRS Exemptions Register.
- Most exemptions last five years (the "new landlord" one is a short, six-month temporary exemption), and they are not automatic.
- The seven-year payback test is central: you may be exempt if no relevant improvement pays for itself through energy savings within seven years.
- Listed and heritage buildings are a special case, not a blanket exemption. Each still needs assessing.
Not every sub-standard building can be dragged up to an E, and MEES recognises that. There are exemptions that let you continue to let a property below the minimum, but they are narrow, they need evidence, and they only work if you actually register them. Assuming you qualify, and not registering, is one of the most common and expensive MEES mistakes. Here's how the exemptions really work.
What a MEES exemption is (and is not)
An exemption is a registered, time-limited permission to let a property that doesn't meet the minimum EPC standard. It is not a loophole and it is not automatic. You have to show the property qualifies, and you have to register the exemption on the PRS Exemptions Register before you rely on it. An unregistered exemption is, for enforcement purposes, no exemption at all.
This is general information, not legal advice. Whether an exemption applies turns on the specific facts and evidence for your property.
The main exemptions for commercial property
The exemptions most relevant to non-domestic landlords include:
- All relevant improvements made. You've done everything that meets the payback test and the property still falls below E.
- Seven-year payback. There are no relevant energy efficiency improvements whose expected savings pay back their cost within seven years. This is the workhorse exemption, covered below.
- Devaluation. An independent surveyor advises that the works would reduce the property's market value by more than a set threshold.
- Third-party consent. A necessary consent, for example from a tenant, superior landlord or planning authority, has been refused, or granted only on conditions you can't reasonably meet.
- New landlord. A short, temporary exemption (six months) for someone who has recently, and in defined circumstances, become the landlord, to give time to comply.
The seven-year payback test, explained
The seven-year test is where most commercial exemptions are won or lost. In essence: an improvement is "relevant" if the expected value of the energy savings over seven years is equal to or greater than the cost of installing it. If no relevant improvement can get the property to an E, or none exists that passes the test, you may qualify for an exemption.
The key word is evidence. This is a calculation, backed by assessment, not an opinion that the works "aren't worth it". You need an assessor to model the measures, their costs and their savings, and to document why the test isn't met. That documentation is what you lodge, and what protects you if the exemption is ever challenged.
How to register, and for how long
Exemptions are registered on the PRS Exemptions Register, and most last five years (the new-landlord exemption is six months). When it expires you must try again to comply or register a fresh exemption if one still applies. You'll need to provide supporting evidence, such as the EPC, the assessment of measures and any surveyor's report or refused consent. Exemptions are also generally personal to the landlord and don't automatically pass to a buyer, so they're checked on acquisition too. The public can search the register via View private rented sector exemptions.
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Listed and heritage buildings
There's a persistent myth that listed buildings are simply exempt from EPCs and MEES. They're not, at least not automatically. The position is narrower: a building may fall outside the requirement where the improvements needed to raise the rating would unacceptably alter its character or appearance. That's a judgement that has to be made building by building, often with input from a conservation-aware surveyor. Treating "it's listed" as a free pass is risky.
Don't assume, and don't skip the register
Two mistakes cause the most trouble. The first is assuming an exemption applies without the evidence to back it, which leaves you letting unlawfully if you're wrong. The second is believing you qualify but never registering, which means you get no protection even if the underlying case was sound.
If there's a realistic chance you can't reach an E, get the position assessed properly, and if an exemption applies, register it. It's a small amount of work against a potential £150,000 penalty.
Getting the position assessed
Working out whether you can reach an E, or whether an exemption genuinely applies and how to evidence it, is a job for an accredited energy assessor, ideally one used to MEES casework. ComSurv matches you with accredited assessors who cover your area and building type, so you can get a clear read on your options and compare no-obligation quotes.
Sources & further reading
- Non-domestic private rented property: minimum energy efficiency standard (GOV.UK) — the exemptions and how they work, in full
- Register a private rented sector energy standards exemption (GOV.UK) — the PRS Exemptions Register service
- View private rented sector energy standards exemptions (GOV.UK) — the public register of exemptions and penalties
- The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 — the MEES regulations
External links open in a new tab. ComSurv is a matching service, not a firm of surveyors, and is not affiliated with these organisations. This article is general information, not legal, surveying or valuation advice; take advice on your specific situation.
