The Minimum Energy Efficiency Standards (MEES) apply to all rented properties in England and Wales which are legally required to have an Energy Performance Certificate (EPC), and which are let on a relevant tenancy type.
The PRS Exemptions Register is for properties which are legally required to have an EPC, and which are let on a relevant tenancy type, but which cannot be improved to meet the minimum standard of EPC band E for one of the reasons set out below.
Where an exemption applies, the exemption must be registered by the landlord (or an agent for the landlord); this registration is made on a self-certification basis and an exemption will apply from the point at which it is registered.
1. ‘No Funding’ Exemption - Where a recommended measure is not a “relevant energy efficiency improvement” because the cost of purchasing and installing it cannot be wholly financed at no cost to the landlord (Regulation 25(1)(b)) Available for Domestic Property only.
2. ‘7 Year Payback’ Exemption - Where a recommended measure is not a “relevant energy efficiency improvement” because the cost of purchasing and installing it does not meet the Seven Year Payback test (Regulation 28(3) Available for Non-Domestic Property only.
3. ‘All Improvements Made’ Exemption - Where all the “relevant energy efficiency improvements” for the property have been made (or there are none that can be made) and the property remains sub-standard (Regulation 25) Available for Domestic and Non-Domestic Property.
4. ‘Wall Insulation’ Exemption - Wall insulation exemption (Regulation 24(2)) Available for Domestic and Non-Domestic Property. The Regulations acknowledge that certain wall insulation systems may not be suitable in certain situations, even where they have been recommended for a property, and where they meet the funding requirements (See link below for further guidance).
5. ‘Consent’ Exemption - Third party consent exemption (Regulation 31(1) and Regulation 36(2)) Available for Domestic and Non-Domestic Property.Depending on circumstances, certain energy efficiency improvements may legally require third party consent before they can be installed in a property. Such improvements may include (but are not limited to) external wall insulation or solar panels which can require local authority planning consent, consent from mortgage lenders, or other third parties.
6. ‘Devaluation’ Exemption - Property devaluation exemption (Regulation 32(1) and Regulation 36 (2)) Available for Domestic and Non-Domestic Property. An exemption from meeting the minimum standard will apply where the landlord has obtained a report from an independent surveyor who is on the Royal Institution of Chartered Surveyors (RICS) register of valuers advising that the installation of specific energy efficiency measures would reduce the market value of the property, or the building it forms part of, by more than five per cent.
7. ‘New Landlord’ Exemption - Temporary exemption due to recently becoming a landlord (Regulation 33(1) & Regulation 36 (2)) Available for Domestic and Non-Domestic Property. The Regulations acknowledge that there are some, limited circumstances where a person may have become a landlord suddenly and as such it would be inappropriate or unreasonable for them to be required to comply with the Regulations immediately.
For full details on each exemption click here.
To view the exemptions register or register for an exemption click here.