Scottish Landlords - Minimum EPC requirement

SAL has recently met with the Scottish Government to get an update on the minimum EPC requirement which is due to come in next year for PRS properties. We’ve been advised that draft legislation and guidance will be published for consultation at the end of May and following this regulations will be laid before parliament in the autumn to introduce the following minimum requirements: –

• properties must have a minimum EPC rating of E at change of tenancy from 1 April 2020
• all rental properties must have a minimum EPC rating of E by 31 March 2022
• properties must have a minimum EPC rating of D at change of tenancy from 1 April 2022
• all rental properties must have a minimum EPC rating of D by 31 March 2025.

There will be exemptions available in some cases and a cost cap of £5000 per rating. We’ve been advised that a new loan scheme will be developed for landlords to cover this outlay. For further details on the proposals including a list of planned exemptions see this document: Energy Efficient Scotland - PRS update (56 downloads)

Separately the government has recently published a new consultation on plans to bring forward proposals for all properties in Scotland to have an EPC rating of C where it is cost effective and technically feasible. Part of this consultation seeks views on requiring PRS properties to have an EPC rating of C at change of tenancy from 1 April 2025. To read and respond to this consultation click here.

The government has already consulted on plans to require all properties to have an EPC rating of C by 2040, with social housing already on track to meet that standard by 2020; an aim for all PRS properties to meet that standard by 2030, and for owner-occupied properties to meet it by 2040.

Source:  SAL