The Scottish Government announced in April 2025 that the point of purchase (PoP) requirement would most likely no longer form part of the Heat in Buildings Bill (HIBB) due to be introduced in the Scottish Parliament later in 20251. The announcement came shortly before the completion of a study by Changeworks and Nesta Scotland, published on 13 May 2025, which examined how the requirement might work and what its effects on the housing market would be1.
The PoP proposal came from a Scottish Government consultation published in November 20231. It would have required homeowners in Scotland to install clean heating systems after buying a property, within a couple of years of the transaction completing1. The study models a grace period of two to five years, to be confirmed at a later date, and assumes the requirement enters into force in 20301. Clean heating is defined in the research as Zero Direct Emissions Heating1.
The study estimates that, with a range of exemptions, between 16 and 60 per cent of annual property transactions in Scotland could be subject to the requirement, delivering an estimated 16,000 to 60,000 additional clean heating installations per year1. It proposes exempting all flats, and an exemption for properties bought for less than £145,000 with an initial short-term exemption for those below £250,0001. Those thresholds would reduce the number of annual transactions eligible to 16 per cent initially, around 15,000, and later 37 per cent, around 34,000, after removal of the exemption for higher value properties1. The study states that the exemptions would exclude approximately 40 per cent of the roughly 95,000 property transactions that take place each year in Scotland1.
On costs, the study limits upgrade costs to a hypothetical 2 per cent of property value in its modelling1. It cites a figure of £3,500 on average per upgraded property for bringing privately owned homes up to a similar standard, alongside figures of £6,150, £9,900, £3,750 provided by the Scottish Government, and a scenario without grants where the upfront cost is £9,9001.
"In April 2025, shortly before the completion of this study, Scottish Government announced that the PoP requirement would most likely no longer be part of the HIBB due to be introduced later this year in the Scottish Parliament."
The study also sets out other HIBB proposals drawn from the 2023 consultation: all privately rented homes must meet the standard by 2028, all owner-occupied homes by 2033 unless they already have clean heating, and all buildings must cease use of polluting heating by 20451. An owner-occupied property with clean heating by 2033 would be exempt from the energy efficiency standard1. The study notes that the UK Government brought in new fire safety rules in 2018 prohibiting combustible cladding systems in high rise buildings1.
Why it matters for households
For a household in Scotland, the practical effect of the announcement is that a clean heating system is unlikely to become a condition of buying a home under the HIBB as currently planned. The Heat in Buildings Bill proposals that remain in the study's account of the 2023 consultation are dated standards for rented and owner-occupied homes, and a 2045 end date for polluting heating1. The planning position for heat pumps in Scotland is separate from the PoP question and is covered in our guide to heat pump planning permission in Scotland.
The study's own figures show why the requirement mattered to the finances of a move. It found that including upgrade costs in a mortgage could lower the cost of finance, citing average interest rates of 4.5 per cent for new mortgages against 8.5 per cent for new personal loans1. It also found that low-equity buyers such as first-time buyers could face borrowing limits without support, and that home moves could be slightly reduced1. Property prices were expected to adjust, with compliant homes worth more than non-compliant ones, though the study judged national average prices unlikely to be significantly affected1.
What happens next
The HIBB is due to be introduced in the Scottish Parliament later in 20251. The study assumes the PoP requirement would enter into force in 2030 if it proceeded, and states that grace periods and exemption thresholds would be confirmed at a later date1. No further detail on the Scottish Government's final position on the PoP requirement has been reported1.