Scotland Landlords: Keep Up to Date with EPC Rating Regulations – What is the new minimum EPC rating for rented property?

Scotland minium EPC rating of D for rental properties

The Scottish Government has informed the Scottish Association of Landlords (SAL) of an change in the minimum EPC guidelines.

It is expected that the “E” standard will be removed and private rented properties are required to achieve the EPC rating D. D before 31 March 2025. Additionally, the EPC rating that is D is required in the event of a change in the tenancy on April 1st, 2022. Therefore, landlords will have one year to be compliant at the point when the regulations kick in.

Are there any exemptions for the EPC rating in Scotland?

The regulations allow for certain exceptions for example:

  • In the event that the other owners of the block don’t allow work to be performed to common parts in the property. or if the tenants themselves don’t agree to the work being done.
  • If it’s technically impossible to do the work.
  • If the price of the work is greater than £10,000.
  • In the event that permission to undertake improvements cannot be granted through a listed property, or within a conservation zone

Landlords will be only obliged to complete work when the expense of purchasing and installing the equipment can be paid for by funds from grants or a the loan of Scottish Ministers. The government has established this loan program called Private Rented Sector Landlord Loan that is interest-free for those who own five or less properties, or at a rate of 3.5 percent for those with greater portfolios.

Details of the loan and other funding available to landlords for energy efficiency work can be read here.

Energy performance label D

Goverment enforcement

Local authorities are accountable to enforce the standards. Fines may be assessed to owners who do not meet the minimum standards or who provide inaccurate or false information in an exemptions registry.

Additionally, the government recently launched a new consultation about plans to present proposals that require all homes in Scotland to be given the EPC rating that is C when it is financially in terms of technology and cost. A portion of the consultation solicits views on whether it is necessary for PRS properties to be equipped with at least an EPC rating that is C upon a change in tenancy starting the 1st April in 2025. To respond and read this consultation click here.

For further updates and information you can see the info here.

Do you need to find an EPC assessor in Scotland?  For both commercial and domestic assessors you can find them using the Go Local EPC search tool here.

Posted in Home EPC.