Minimum Energy Efficiency Standards (MEES) in the UK

In England and Wales, the Minimum Energy Efficiency Standard (MEES) regulations make it unlawful to let properties in England and Wales with an Energy Performance Certificate (EPC) rating below E - unless a valid exemption has been registered. These rules apply to both residential and commercial properties. For non-domestic properties, the standard came into full effect in April 2023 and is set to tighten further, with proposals to raise the minimum to EPC C by 2027 and B by 2030. In Scotland, MEES doesn’t apply. Instead, properties follow the Energy Performance of Buildings Regulations. All properties must present an EPC when sold or leased to new tenants, but compliance obligations (like the Energy Action Plan for larger buildings) are less rigorously enforced. 

In England and Wales, all let properties must have a valid EPC rated E or higher. If the property is rated F or G, landlords are required to make cost-effective energy efficiency improvements. These typically include adding insulation , installing double or triple glazing, upgrading to energy-efficient lighting, replacing inefficient heating or cooling systems and introducing renewable energy systems.

In England and Wales, local authorities enforce MEES. Penalties for non-compliance can be substantial. For non-domestic properties, fines start at £5,000 or 10% of the property’s rateable value (whichever is higher), up to £50,000 for breaches under three months. For longer breaches, the penalty increases to £10,000 or 20%, capped at £150,000. For domestic properties, fines are smaller, up to £2,000 for short breaches and £4,000 for longer ones. Total penalties per property are capped at £5,000. In Scotland, enforcement is also handled locally, but penalties are currently fixed: £500 for domestic and £1,000 for non-domestic properties. While these are lower, the Scottish Government is reviewing them, and more active enforcement is expected.

MEES has had a significant impact on both commercial and residential property markets. Commercial properties with EPC ratings of F or G risk becoming “stranded assets”,  buildings that can’t be let and are costly to upgrade. This reduces their rental appeal and market value. As a result, many landlords are choosing to upgrade or sell these properties. In the residential sector, older housing stock is under pressure to meet new standards, especially as energy efficiency increasingly influences lending. Green mortgages and energy-linked finance are becoming more common, aligning financial products with regulatory expectations and sustainability goals.