Search

Scotland

Social Housing Net Zero Standard consultation closed

The Scottish Government's consultation on a new Social Housing Net Zero Standard closed on 8 March 2024, with responses now under independent analysis ahead of a report.

A newspaper on a kitchen table beside a model of rules and regulation

The consultation on proposals for a new Social Housing Net Zero Standard (SHNZS) closed on 8 March 2024, the Scottish Government has said, and responses are now under independent analysis1. The proposed standard would replace the second milestone of the Energy Efficiency Standard for Social Housing, known as EESSH21.

EESSH was introduced in March 2014 to improve the energy efficiency of social housing in Scotland and to help reduce energy consumption, fuel poverty and the emission of greenhouse gases1. Its first milestone set a target of EPC C or D for social rented homes by 31 December 2020, dependent on dwelling type and fuel type1. The second milestone, confirmed in June 2019, required that all social housing meet, or be treated as meeting, EPC Band B by the end of December 2032, within the limits of cost, technology and necessary consent, and that no social housing below EPC Band D be re-let from December 2025, subject to temporary specified exemptions1. Both milestones are now temporarily on hold pending the review of EESSH21.

The review was convened in September 2022 because the 2032 milestone was not aligned with net zero targets for heating1. Under those targets, by 2045 all homes in Scotland must have significantly reduced their energy use, and almost all must be using a zero direct emissions heating system1. The Scottish Housing Regulator has paused collection of EESSH data until the review concludes, and will then consult on indicators for the replacement standard in the Annual Return on the Charter1. The regulator reported that 88% of social rented homes met the 2020 EESSH milestone at 31 March 20221.

Support for landlords continues alongside the review. The Social Housing Net Zero Heat Fund launched in August 2020 and is making at least £200 million available to social landlords until 2026 for retrofit of existing stock1. The intervention rate for installation of zero direct emissions heat has been increased to 60%, and the project funding cap rises by 11% for rural projects and 22% for remote projects1. In 2023-24 the fund supported nearly 7,400 social housing properties to install energy efficiency measures and over 2,700 properties to install renewables and/or clean heat measures2.

"We recently ran a consultation to invite views on proposals for a new Social Housing Net Zero Standard (SHNZS) to replace EESSH2. This consultation closed on 8 March 2024, and responses are now under independent analysis."
Scottish Government, Energy efficiency in social housing1
EESSH milestoneRequirementDate
First milestoneEPC C or D, dependent on dwelling type and fuel type31 December 2020
Second milestone (EESSH2)EPC Band B, or as energy efficient as practically possibleDecember 2032
EESSH2 re-let conditionNo social housing below EPC Band D re-letFrom December 2025

Why it matters for households

For social tenants, the practical effect is that the energy efficiency rules their landlord works to are in transition. The 2025 and 2032 EESSH2 milestones are on hold, so the standard a tenant can currently expect their home to meet is the subject of a review rather than a fixed target1. The proposed replacement ties social housing to the wider net zero target for 2045, under which all homes in Scotland must have significantly reduced energy use and almost all must use a zero direct emissions heating system1. That points to fabric improvements and a shift away from fossil fuel heating in social stock, both of which bear on how much a home costs to run and how exposed it is to fuel price movements. The Scottish Housing Regulator's pause on EESSH data collection means published compliance figures will not be refreshed until the review concludes1. Comparable standards in the rest of the UK are set separately: EESSH in Scotland has no single equivalent across the nations, and Wales operates its own Welsh Housing Quality Standard and a 2030 EPC requirement for social housing in Wales.

What happens next

Responses to the consultation are under independent analysis, and the Scottish Government has said it will publish a report of these analyses in due course1. The date of that report has not been reported. The Scottish Housing Regulator will consult on indicators for the replacement standard for the Annual Return on the Charter once the review concludes1.

Sources2 cited
  1. Energy efficiency in social housing - Home energy and fuel poverty - gov.scot, gov.scot
  2. 4. Activities (policy and delivery) - Heat in Buildings: progress report 2024 - gov.scot, gov.scot