The Scottish Government has published yet another consultation, the seventh in just over eight years, on energy efficiency in the private rented sector (PRS). This time, draft regulations propose introducing a Minimum Energy Efficiency Standard (MEES) that would require most PRS properties to meet an EPC equivalent of C in the coming years.
What’s the latest proposal?
Under the current draft regulations, landlords would need to ensure:
- New tenancies from 1 April 2028 meet the EPC C standard
- All PRS properties meet this standard by 2033
(Note: There’s a discrepancy between the consultation, which mentions 31 December 2033, and the draft regulations, which state 1 April 2033. Clarification is being sought.)
It is also worth noting that these changes are still under consultation and have not yet been passed into law, meaning the exact timelines could shift.
It’s not just about EPC bandings anymore. If a property is unable to meet a C rating, then landlords would be required to install a package of energy efficiency improvements known as a fabric first approach, with the emphasis on better insulation and energy-saving measures. The focus is to be on a new metric, the Heat Retention Rating (HRR), which will become the primary measure on updated EPCs expected in 2026.
What does this mean in practice?
The old alternative of complying through a checklist of improvement measures has been dropped. Instead, a property’s HRR will determine compliance.
- About 80% of properties currently rated EPC C are expected to meet the new HRR C threshold.
- Properties with good insulation but more expensive heating systems (like electricity) may fare better under the HRR.
- Conversely, homes with poor insulation, even if they use cheaper fuels, could be penalised with a lower HRR.
Exemptions and assessments
Landlords won’t be expected to carry out works that are:
- Impossible to get consent for (from tenants, neighbours, planning)
- Prohibitively expensive with a proposed cost cap of £10,000
- Listed buildings if the building is listed or located within a conservation area and compliance with minimum energy performance standards would unacceptably alter its character or appearance.
- Temporary exemption from MEES if improvements cannot be made due to specific legal, technical, or planning restrictions, landlords may register for a temporary exemption from Minimum Energy Efficiency Standards (MEES).
To support this, a new Heat & Energy Efficiency Technical Suitability Assessment (HEETSA) is being developed. This technical survey would help determine which improvements are appropriate and which could cause issues, such as increased dampness from cavity wall insulation in the wrong setting, or restrictions in listed buildings and conservation areas.
Concerns raised by the sector
Organisations like the Scottish Association of Landlords (SAL) have voiced serious concerns about the potential impact of these proposals:
- PRS supply could shrink, with some landlords opting to exit the market rather than face complex or costly upgrades.
- Homelessness and housing shortages may worsen if properties sit empty during works or are withdrawn from rental altogether.
Have your say
Landlords are strongly encouraged to read the draft regulations and respond to the consultation before the deadline of 29 August 2025.
Read and respond here:
Scottish Government MEES Consultation
Final thoughts
The direction of travel on energy efficiency in Scotland’s PRS is clear, but the pace, clarity and cost of implementation remain major concerns.
Remaining compliant with EPC requirements is more than just a legal obligation for landlords, it is a strategic investment. With planned legislation set to tighten standards to EPC C or equivalent by 2028, its vital landlords stay informed and take proactive steps now.
The positive news is that improving an EPC rating doesn’t always require major expense. Simple measures like installing LED lighting, draught-proofing, or adding radiator reflectors can have a meaningful impact. For properties needing deeper upgrades, investing in insulation, modern boilers, or renewable technologies not only helps meet upcoming standards but can reduce tenant energy costs which in turn makes a property more desirable and will also boost overall capital values.
