Scottish Government launches consultation on Energy Efficiency Regulations for landlords

The Scottish Government has announced that it will be consulting on the suitability of the guidance and landlords’ awareness of changes to Energy Performance Certificate (EPC) standards, due to take effect from 1 April 2020, a recent news report has been able to suggest.

Under the new set of rules, from 1 April 2020 landlords will only be able to grant new tenancies if they have an EPC rating of E or above. This will extend to existing tenancies from 31 March 2022. For new tenancies granted from 1 April 2022 landlords will be required to have a minimum EPC rating of D and this requirement will be extended to all tenancies by 31 March 2025.

Landlords will be eligible for cost exemptions relating to energy efficiency improvements that meet or exceed minimum standards, if they go beyond:

£5,000 to reach an EPC E from 1 April 2020 for new lets;
£5,000 to reach an EPC E by 31 March 2022 for all properties;
an additional £5,000 to reach an EPC D from 1 April 2022 for new lets;
an additional £5,000 to reach an EPC D by 31 March 2025 for all properties.

However, landlords will need to provide proof to the local authority and complete any improvements up to the cost cap.

Local authorities will oversee enforcement and will use compliance notices to collect evidence from landlords if they believe that they may be in breach of the regulations. If found guilty a local authority has the discretion to charge landlords financial penalties of between £2,000 to £5,000.

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