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Consultation on private rented sector energy efficiency standards closes

The Scottish Government consultation on draft minimum energy efficiency standards for privately rented homes closed on 29 August 2025, with responses from Home Energy Scotland, the National Insulation Association and the Energy Saving Trust.

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

The Scottish Government consultation on draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations closed on Friday 29 August 20251. The consultation, launched on 6 June 2025, proposed new minimum energy efficiency standards (MEES) for domestic private rented sector (PRS) properties in Scotland1.

Under the proposals, the standards would have to be met when properties are let to a new tenant from 2028 and for all privately rented properties by the end of 20331. The proposed standard is a reformed EPC heat retention rating (HRR) band C, which focuses on building fabric performance such as walls, roof, floor and windows1. Three new ratings are planned for EPCs in 2026: heat retention rating, energy cost rating and heating system rating1. The consultation also outlined exemptions for landlords whose properties may not be able to meet the standards1.

The National Insulation Association (NIA) said the 2023 Scottish House Condition Survey found 48% of all PRS homes were within EPC band D or lower, and that renters in homes rated EPC D to G are 73% more likely to experience damp and 89% more likely to experience excessive cold than those in homes rated EPC A to C2. It said homes rated EPC D to G could save between £555 and £7,188 annually on energy costs by upgrading to an EPC C, depending on current band and property type2. The Energy Saving Trust said nearly half of PRS homes are rated EPC Band D or lower and 14% fall into Bands E, F or G, describing this as a key driver of the sector's disproportionately high fuel poverty rate of 44%3.

The three respondents took different positions on the proposed 2033 backstop date. The NIA supported it, citing supply chain constraints and upgrade costs2. The Energy Saving Trust said the backstop should be 2030, arguing that 2033 would delay action and leave tenants in fuel poverty for longer, and noting that a 2030 date would align with the backstop proposed by the UK Government for England and Wales3.

On the cost cap, the consultation proposed £10,0002. The NIA supported a cap of £15,000, saying this would increase the likelihood of properties in current EPC bands E to G reaching compliance2. The Energy Saving Trust also disagreed with £10,000, noting that a £10,000 cap in 2018 prices would be equivalent to approximately £12,300 in 2024 and £13,200 in 2028, and recommending that the cap increase in line with inflation3. The NIA also supported a two-year lead-in period for works to contribute to the cost cap, rather than the proposed 12 months, citing a shortage of skilled labour2.

"The NIA supports the implementation of a cost cap of £15,000."
National Insulation Association2

The Energy Saving Trust said it agreed that only new reformed EPCs should be used as a basis for the MEES, but noted this may mean a small proportion, around 20%, of properties that landlords thought would meet the standard may not3. It disagreed with excluding short-term holiday lets from the MEES, while the NIA offered no comment on that question2. Both organisations supported making a Heat and Energy Efficiency Technical Suitability Assessment (HEETSA) available to evidence potential negative impacts on a property's fabric and support an exemption2.

Why it matters for households

For tenants in Scotland's private rented sector, the proposed standard would set a minimum level of building fabric performance that a landlord must reach before letting a property. The figures cited by respondents link lower EPC bands to higher rates of damp and excessive cold, and to higher fuel poverty rates in the sector2. A higher fabric standard would reduce the energy needed to heat a home, which affects both bills and warmth, though the sources do not quantify the effect on individual households beyond the estimated savings range of £555 to £7,188 annually for upgrades from EPC D to G to EPC C2.

The cost cap determines how much a landlord is expected to spend before an exemption may apply, so its level affects whether a property is upgraded or exempted. The consultation proposed £10,000; the NIA sought £15,000 and the Energy Saving Trust sought a higher, inflation-linked figure2. The backstop date determines how long tenants in the least efficient homes may wait for improvements, with the Energy Saving Trust arguing for 2030 rather than 20333.

What happens next

The consultation closed on 29 August 20251. The Scottish Government has not published a response to the consultation, and no date for doing so has been reported. The new EPC ratings are planned for 2026, and the first compliance date proposed is 2028 for properties let to new tenants1.

Sources3 cited
  1. | Home Energy Scotland, homeenergyscotland.org
  2. Consultation on Draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations – National Insulation Association response - National Insulation Association, nia-uk.org
  3. Energy efficiency regulations Scotland - Energy Saving Trust, energysavingtrust.org.uk