Not every commercial building can be improved to meet the MEES minimum. Listed buildings, buildings with restrictive leases, and buildings where improvement costs are disproportionate all present genuine barriers. The regulations account for this through four exemption categories.
Each exemption must be registered on the PRS Exemptions Register with supporting evidence. None are automatic, and none last indefinitely. This guide explains what each one requires and how to register them.
The seven-year payback exemption
This is the most commonly used commercial MEES exemption. It applies when every possible improvement that could be made to the property does not pay back through energy savings within seven years. The calculation is based on the Recommendation Report from a current EPC, supported by at least three contractor quotations for the works.
To register: you need a current EPC showing the property is below the minimum, the Recommendation Report listing possible improvements, three quotations from independent contractors for each improvement, and a calculation showing the payback period exceeds seven years for every one of them. You submit this to the PRS Exemptions Register along with a signed declaration.
The exemption lasts five years from the date of registration. After five years, you must either improve the property, re-register the exemption with fresh evidence, or stop letting it.
The consent exemption
This applies where a third party whose consent is needed for the works has refused it. The third party is usually the tenant (where the lease requires tenant consent for landlord works), a superior landlord, or a planning authority (where listed building consent or conservation area consent has been refused).
You need written evidence of the request and the refusal. The exemption lasts five years or until the consent issue is resolved, whichever is sooner. If the tenant changes, the exemption may no longer apply and needs reassessment.
The devaluation exemption
This applies where an independent surveyor's report confirms that the required improvements would reduce the market value of the property by more than 5%. This is relatively rare in commercial property but can arise where works would alter the character of a heritage building or reduce lettable floor area.
You need a written valuation from an RICS-registered surveyor. The exemption lasts five years.
The new landlord exemption
This is a six-month grace period that starts when you become the landlord of a non-compliant property. It applies to purchases, inheritance, and receivership. During those six months you must either improve the property, register one of the other exemptions, or stop letting it.
You still need to register this exemption on the PRS Exemptions Register within the six-month window. It is not automatic.
What happens when exemptions expire
All MEES exemptions except the new landlord exemption last five years. When they expire, the landlord must reassess: either the property has been improved and now meets the minimum, or fresh evidence supports re-registering the same or a different exemption. If neither applies, letting the property becomes unlawful again.
This is why getting a current EPC is the first step regardless of your exemption status. The Recommendation Report tells you what improvements are possible and at what cost. Even if you plan to register an exemption, you need the EPC data to support it.
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