1. The exemption framework
The MEES regulations recognise that not every property can achieve compliance cost-effectively. Several exemptions exist, each with specific criteria:
- 7-year payback exemption — Improvements don’t pay back within 7 years
- All improvements made exemption — You’ve done everything that meets the payback test
- Consent exemption — You can’t get necessary consents for improvements
- Devaluation exemption — Improvements would devalue the property
- New landlord exemption — Recently acquired non-compliant property
Each exemption must be registered on the PRS Exemptions Register. Unregistered exemptions don’t count — you’re still non-compliant.
2. The 7-year payback exemption
What it is:
If the cost of energy efficiency improvements wouldn’t be recovered through energy savings within 7 years, you may qualify for an exemption.
How it works:
You (or your energy assessor) identify potential improvements that would raise the EPC rating. For each improvement, calculate:
- The cost of the improvement
- The expected annual energy saving
- Whether the cost pays back within 7 years
Improvements that don’t meet the 7-year payback test can be excluded.
Important:
This doesn’t exempt you from doing anything. You must still carry out all improvements that DO meet the 7-year payback test. The exemption only covers the gap between what’s cost-effective and what’s needed for full compliance.
Example:
- Property currently rated F
- LED lighting upgrade: £5,000 cost, £1,000/year saving = 5-year payback ✓ (must do)
- Heating upgrade: £30,000 cost, £2,000/year saving = 15-year payback ✗ (exempt)
- After LED upgrade, property reaches E
- Exemption registered for remaining gap
Duration: 5 years, then reassess
3. The “all improvements made” exemption
What it is:
A variant of the payback exemption. You’ve made all the improvements that meet the 7-year payback test, but the property still doesn’t reach the minimum standard.
How it works:
Document that you’ve:
- Identified all relevant improvements
- Carried out those that meet the payback test
- The property still doesn’t achieve the minimum EPC rating
This exemption acknowledges that some properties can’t reach compliance even with cost-effective improvements.
Duration: 5 years
4. The consent exemption
What it is:
You’ve tried to get consent for necessary improvements but been refused, or consent conditions make the work impractical.
Consent from whom:
- Planning authority — Listed building consent, conservation area consent, planning permission for external changes
- Superior landlord — If you’re a leaseholder and need your landlord’s consent for works
- Tenant — If improvement works require tenant cooperation and they refuse
- Mortgage lender — If your lender won’t permit the works
Requirements:
You must have actually sought consent and been refused (or had unreasonable conditions imposed). You can’t claim this exemption without evidence of refused consent.
Example:
Listed building. External wall insulation would achieve compliance but requires listed building consent. Consent refused because it would harm the building’s character. Exemption applies.
Duration: 5 years
5. The devaluation exemption
What it is:
An independent surveyor has assessed that the required improvements would reduce the property’s market value by more than 5%.
How it works:
Commission an RICS-qualified surveyor to:
- Value the property in its current state
- Value the property assuming improvements are made
- Confirm in writing that improvements would reduce value by >5%
When might this apply:
- Heritage properties where inappropriate improvements damage character
- Properties where improvements would restrict use
- Situations where the improvement specification is disproportionate
This is rare. Most energy improvements don’t reduce property value — they increase it. This exemption is for exceptional circumstances.
Duration: 5 years
6. The new landlord exemption
What it is:
You’ve recently become the landlord of a non-compliant property and need time to either improve it or register another exemption.
How it works:
If you acquire a non-compliant property (by purchase, inheritance, gift, etc.), you have 6 months to either:
- Bring it into compliance, or
- Register an applicable exemption
During this 6-month period, you’re exempt from enforcement.
Important:
This is temporary. It gives you time to assess the situation, not a permanent pass. After 6 months, you need compliance or another exemption.
Duration: 6 months from becoming landlord
7. Registering your exemption
Exemptions must be registered on the PRS Exemptions Register to be valid. An unregistered exemption provides no protection.
To register:
- Go to the PRS Exemptions Register (gov.uk)
- Provide property details
- Select the exemption type
- Upload supporting evidence
- Confirm the declaration
Evidence required depends on exemption type:
- Payback exemptions: Energy assessment showing calculations
- Consent exemption: Evidence of refused consent
- Devaluation: Surveyor’s report
- New landlord: Evidence of acquisition date
Keep records. You may need to demonstrate the validity of your exemption if challenged.
8. What exemptions don’t do
They don’t last forever
Most exemptions are valid for 5 years. After that, you must either achieve compliance or register a new exemption (with fresh evidence that it still applies).
They don’t transfer on sale
Exemptions are personal to the landlord who registered them. If you sell, the new owner must either comply or register their own exemption.
They don’t excuse future non-compliance
Standards are tightening. An E-rating exemption registered now doesn’t help when the minimum rises to C in 2027. You’ll need to reassess.
They don’t prevent all consequences
An exempt property is still non-compliant. It may affect:
- Marketability to tenants
- Property value
- Lender attitudes
- Future sale
Exemption is a legal shield, not a solution.
9. Strategic considerations
Exemptions buy time, not solutions
If your property needs improvement long-term, an exemption delays the cost but doesn’t eliminate it. Use the time to plan properly.
Do what’s cost-effective first
Even if you qualify for an exemption, improvements that DO meet the payback test should be done. They save energy costs and improve the property.
Standards are rising
Current minimum E. Expected to rise to C (2027) and B (2030). An exemption valid today may not apply when standards tighten.
Document thoroughly
Keep all evidence supporting your exemption. You may need to defend it or re-register it.
Consider the alternative
Sometimes the cost of improvements is less painful than 5 years of compromised lettability, reduced value, and repeated exemption administration.
Key Takeaways
- Several exemptions exist — payback, consent, devaluation, new landlord
- All must be registered — unregistered exemptions don’t protect you
- Most last 5 years — then you reassess
- They don’t transfer — new owners need their own exemptions
- Standards are tightening — today’s exemption may not help in 2027
- They buy time, not solutions — plan for eventual compliance
Need Help?
If you’re unsure whether your property qualifies for an exemption, or you want to understand your options for achieving compliance, we can help. Working with our energy assessment partners Carbon Profile, we provide practical advice on MEES strategy and can assist you in implementing the works to reach compliance.
Related Services:
- MEES Compliance & EPC Improvement Works — Assessment and improvement works
- Pre-Acquisition Surveys — Understanding EPC position before purchase
Related Articles: