New minimum EPC proposals
The Scottish Government has published a consultation and draft regulations to introduce a minimum energy efficiency standard (MEES) in the PRS in Scotland. This is the 7th consultation in just over 8 years relating to energy efficiency in the PRS in Scotland.
The latest plan is to require a MEES equivalent to EPC C from 1/4/2028 (for new tenancies) and by 2033 for all remaining PRS properties (the draft regulations refer to 1/4/2033 but the consultation refers to 31/12/2033 so some clarification needs to be sought on this date). It is proposed that the standard will require properties to have an EPC with a heat retention rating (HRR) of C. The HRR is not on current EPCs but will be the headline metric on the new style EPCs expected to be introduced from next year and will show how well insulated a property’s roof, walls, windows and floor are. The alternative of using a list of measures to demonstrate compliance (as proposed in the last consultation) is no longer being considered. According to the consultation paper, about 80% of properties with a current EPC rating of C will achieve a HHR of C on the new EPC. Buildings using an inexpensive heating fuel but with leaky building fabric will see that reflected in a poorer rating under the HRR. Similarly, buildings using an expensive fuel, such as electricity, but with good insulation will perform better in the HRR.
There will be exemptions available to ensure that landlords will not be required to install measures which are technically unsuitable for the type of property they own, for which they cannot attain the required consent from tenants, neighbours or planning authorities, or which would be prohibitively expensive (a total expenditure cap of £10,000 is proposed).
There are plans to introduce a new technical assessment (called a Heat & Energy Efficiency Technical Suitability Assessment (HEETSA)) to help landlords establish which energy saving measures to install in their property and which are not suitable. For example, this assessment would identify situations where cavity wall insulation may lead to problems with dampness, or where certain measures are not suitable because the property is listed or in a conservation area.
SAL has raised concerns that the introduction of MEES will exacerbate the country’s housing crisis and increase homelessness, as landlords choose to exit the PRS because of this legislation, or are forced to keep their properties empty for prolonged periods while they undertake assessments and work to meet the new standard.
SAL has also challenged the government’s figures on the cost of improvement works. The consultation suggests the average cost of installing loft insulation, cavity wall insulation, suspended floor insulation and draught proofing the external door of a property would be just £1400. It also implies windows could be double glazed for a further £1300. These figures do not reflect the reality of actual costs charged by contractors for this work, which are typically at least double the amounts quoted. So the actual cost to improve the 144,000 PRS properties that the government believes are below EPC C could be more than £600 million. Based on the government’s published emissions figures SAL has calculated that this expenditure would reduce the country’s greenhouse gas emissions by only 0.04%.
You can read the consultation/draft regulations and respond to the consultation at https://consult.gov.scot/energy-and-climate-change-directorate/private-rented-minimum-energy-efficiency-standard/. The deadline for responses is 29 August 2025.
