Draft EPC regulations published

Draft EPC regulations have been laid in the Scottish Parliament to bring in a long expected requirement for PRS properties to meet minimum EPC standards. The draft regulations set out the following requirements:

Private rented sector properties in Scotland will need to achieve at least:

  • EPC of E at change of tenancy from 1 October 2020
  • All rental properties must have an EPC rating of E by 31 March 2022
  • EPC of D at change of tenancy from 1 April 2022
  • All rental properties must have an EPC rating of D by 31 March 2025

In some situations there will be exemptions, including where:

  • It is not technically feasible to carry out improvements
  • Where other owners in a block of flats refuse consent to do work to common parts of the building
  • Where tenants refuse consent for work
  • Where permission to carry out work to a property which is listed or in a conservation area can’t be obtained
  • Where the cost of improvements needed in the period 1 October 2020 to 31 March 2022 exceeds £5000, and where the cost of improvements needed in the period 1 October 2020 to 31 March 2025 exceeds £10000 (landlords will be expected to carry out any improvements they can up to that amount)

For all EPC related works, landlords will only be required to carry out such work where the cost of purchasing and installing it can be financed by means of funding provided by a grant or loan from Scottish Ministers.

The government has confirmed to SAL that properties which don’t have and have never needed an EPC will not need to comply until an EPC is or has to be obtained for a purpose other than the minimum EPC regulations e.g if the property is marketed for rental to a new tenant.

Further details of exemptions can be read in part 4 of the government’s draft guidance.

Local authorities will be responsible for enforcing the standard and granting exemptions. Fines of up to £5000 can be levied on those owners who don’t comply with the minimum standard or provide false or misleading information on the exemptions register.