CIH Scotland's response to the draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations

Yes.

EPC HRR band C is proportionate. This roughly aligns with previous proposals delayed due to the pandemic so will not be unexpected and will bring private rented properties in line with standards in the social rented sector. Alignment of standards is particularly important in creating clarity and supporting cross tenure work in mixed ownership buildings.

Given that a significant proportion of private rented properties are flats, the Scottish Government must progress with the recommendations of the Tenement Maintenance Group. This includes legislative changes to support communal work in mixed tenure buildings. 

Yes.

It makes sense to adopt the newly reformed EPC as the basis for the proposed MEES and to ensure consistency and clarity of messaging for landlords and tenants. 

The Scottish Government must provide guidance on the transition from the existing EPC system to the new system and validity of current EPCs. There must be adequate capacity in the system to allow for landlords to arrange new assessments to be carried out if required for compliance. 

No.

It is disappointing that the proposals for introducing MEES in the PRS have been delayed, but landlords have been aware of the proposals for a number of years and should have begun to prepare for their introduction. 

We agree that with the delayed introduction of the Heat in Buildings Bill and lack of clarity on wider government approaches to energy efficiency across tenures that the original 2028 timescale is now unfeasible. However, we think that a backstop date of 2030 will strike a balance between allowing additional time for work to be arranged and ensuring that work is carried out in a timely manner. 

This would also align with the 2030 deadline for private landlords being introduced by the UK Government. 

Regardless of the final decision, landlords need to be given clarity over timescales as soon as possible to allow them to plan for and arrange the work to be carried out. The Scottish Government should also consider how to encourage early compliance to avoid bottle necks and pressure on services near the deadline. 

The consultation document mentions the link between these proposed regulations and the Housing Bill currently going through parliament which would introduce powers for rent controls to be introduced where there is evidence of excessive rent increases. The Scottish Government has consulted on certain exemptions that could be introduced to rent controls, including a suggestion that landlords may be able to increase rent above the cap where investment has been made to improve energy efficiency. 

In our response to the consultation on rent control exemptions, we raised significant concerns with the proposals to allow rents to increase above the cap for individual landlords. Firstly, the administration of such a scheme would be resource intensive and difficult to enforce. Secondly, allowing rent increases to cover the cost of energy efficiency measures risks swapping fuel poverty for housing poverty. We suggest that the Scottish Government should focus on ensuring adequate financial support is available to landlords to support the required works. 

Our full response

Yes.

As set out above, landlords have known about the proposed changes for a number of years and these should not come as a surprise. The interim date of 2028 for new tenancies should also help to spread work and avoid pressure on services as the deadline approaches. 

However, if the regulations are to be effective, the Scottish Government must ensure that there is capacity to deliver. This includes smooth transition to the new EPC regime and ensuring enough assessors to carry out new inspections, resources for local authorities and clear information for tenants so they are aware of the new standards they should expect in their tenancies. 

Don’t know.

The Scottish Government should be working towards alignment of standards and all residents, regardless of tenure should be able to expect a good standard of accommodation based on an agreed minimum. 

We understand that these types of accommodation may be challenging to apply PRS MEES to given that they may be lifetime or inherited tenancies. If the Scottish Government decides to exclude these types of accommodation from the PRS MEES, it must explore other options to support improvements where needed. 

No.

As above, we believe that all residents should be able to expect a minimum standard of accommodation regardless of tenure, and this should also apply regardless of the length of stay. Excluding short-term lets would not be appropriate for a number of reasons:

• We need alignment of standards to support work in mixed ownership buildings.  
• Creating a lower standard for short-term lets may incentivise landlords to convert residential lettings to holiday homes.
• Exempting short-term lets will only delay the required action needed to improve the energy efficacy of all homes in order to meet statutory net zero targets.
• Exempting short-term lets will make it more difficult to change use to residential lets in the future if homes are needed to increase supply of permanent housing. 

Yes.

We agree with the approach set out in the consultation and that some exemptions should be time limited. Landlords should be expected to carry out work where circumstances have changed or where advances in technology have produced different or better solutions for a particular building type. 

The Scottish Government will have to set out clear guidance on exemptions and the evidence required to support them. 

Yes.

We agree in principle that HEETSA could provide valuable information about potential negative impacts such as damp and mould or structural issues. However, it is unclear how HEETSA will be resourced. 

Don’t know.

The majority of private rented homes will be able to reach the required EPC C well within the proposed £10,000 price cap and it is essential that the Scottish Government ensures that costs are reasonable. As stated above, we don’t think that it is right that significant costs could be passed on to tenants through rent increases which would cancel out any benefit they may have enjoyed through reductions in energy use. 

However, the £10,000 cap consulted on in 2020 does not take recent inflation into account or the possibility of future inflation. 

The Scottish Government should consider how outlying properties with costs above the proposed cap could be brought up to standard through further financial support or other incentives such as qualifying energy efficiency work being tax deductible.

No.

Landlords should be encouraged to carry out improvements as soon as possible. Restricting eligibility for work contributing to the cost cap to 12 months ahead of the deadline risks owners delaying work and increasing pressure on tradespeople and assessors in the run up to the deadline. 

Yes.

Yes.

It is essential that the Scottish Government provides a comprehensive package of support for private landlords to ensure that work is done, that it is effective, and that costs are not passed on to tenants in such a way that they are made worse off. 

As set out above, the Scottish Government must consider how this aligns with proposals for exemptions and flexibilities to rent caps. For example, should it be permissible for a landlord to receive financial support for work to be carried out and potentially be eligible for a rent increase above the cap? 

Yes.

Yes.

We agree that local authorities are well placed to monitor and enforce compliance. However, we have significant concerns about their ability to do so if additional resources are not made available. 

Yes.

Penalties must be set at an adequate level to encourage compliance. This amount may need to be revisited in future, especially if the cost of compliance increases. 

Yes.

Improving the energy efficiency of homes will have a positive impact in reducing fuel poverty as long as the benefits of reduced energy use are not wiped out through increased rents.

Older households and people living with disabilities are at a higher risk of fuel poverty as they may require additional heating. The ability to heat a home to a comfortable level has a positive impact on mental and physical wellbeing creating a comfortable environment and avoiding health conditions associated with damp and mould.

Potential negative impacts include:

• Excessive costs being passed on to tenants
• Tenants being forced to move home due to increased costs
• Tenants required to move home due to extensive renovations being carried out
• Loss of residential accommodation if homes cannot be let due to low standards
• Inappropriate measures being carried out contributing to damp and mould.

For more information on the consultation please visit the government's website.

For more information on our response please contact Ashley Campbell, CIH Scotland's policy and practice manager, ashley.campbell@cih.org