Under the Minimum Energy Efficiency Standards (MEES), commercial landlords must not let properties with an EPC rating below E. However, there are specific situations where you can legally continue letting a substandard property — provided you register a valid exemption.

Understanding these exemptions is crucial for landlords managing older or difficult-to-upgrade buildings.

First: What Is the General Rule?

As of 2026:

  • Commercial properties must have an EPC rating of E or above to be legally let

  • The rule applies to both new leases and ongoing tenancies

  • Exemptions must be officially registered

These rules are enforced by local authorities under regulations set by the UK Government.

If you’re unsure about your current rating, book a reassessment:
https://epcrate.co.uk/booking/

Valid MEES Exemptions for Commercial Property

Below are the main exemptions landlords rely on.

1. Seven-Year Payback Exemption

You can register this exemption if:

  • All recommended improvements have been reviewed

  • The cost of improvements cannot be recovered through energy savings within 7 years

You must provide evidence (quotes, calculations, assessor reports). This exemption lasts 5 years, after which it must be reassessed.

2. All Improvements Made Exemption

If you have:

  • Completed all cost-effective improvements listed in the EPC recommendation report

  • And the property still remains below EPC E

You may register this exemption.

This is common with older commercial buildings where upgrades provide limited rating impact.

3. Devaluation Exemption

If an independent surveyor confirms that:

  • Energy improvements would reduce the property’s market value by 5% or more

You may qualify for this exemption.

Formal valuation evidence is required.

4. Third-Party Consent Exemption

If required consent cannot be obtained from:

  • A tenant

  • A superior landlord

  • A planning authority

  • A lender

and you can prove reasonable efforts were made, an exemption may apply.

This exemption typically lasts 5 years or until circumstances change.

5. Temporary 6-Month Exemption

This may apply if:

  • You have recently become a landlord unexpectedly

  • A lease renewal triggers MEES

  • A property transfer has occurred

This provides short-term protection while arranging improvements.

Important: Exemptions Must Be Registered

Exemptions are not automatic.

You must:

  • Register the exemption on the official PRS Exemptions Register

  • Provide full supporting evidence

  • Keep documentation available for inspection

Failure to register can result in penalties.

What Happens If You Don’t Register?

If you let a sub-E property without a valid registered exemption:

  • You may face financial penalties

  • The breach may be published publicly

  • You risk reputational damage

Check your compliance status and pricing here:
https://epcrate.co.uk/pricing/

Consult certified assessors for guidance:
https://epcrate.co.uk/services-epc-assessors-london/

How Long Do Exemptions Last?

Most commercial MEES exemptions last 5 years.

After expiry:

  • The property must be reassessed

  • Improvements may need to be reconsidered

  • A new exemption may need to be registered

Key Takeaways for 2026

  • You cannot legally let below EPC E unless exempt

  • Exemptions require evidence and registration

  • Most exemptions last 5 years

  • Non-compliance can result in fines

Meet our company:
https://epcrate.co.uk/about-us-epc-company-london/

Final Advice

Exemptions should not be seen as a permanent solution. Regulations may tighten in future years, and improving your EPC rating is often more secure long term.

Office: 150–160 City Road, London, EC1V 2NX
Phone: 020 3488 4142
Email: info@epcrate.co.uk