On 3 April 2025, Alasdair Allan MSP, acting Minister for Climate Action, confirmed that a revised version of the Heat in Buildings Bill will be introduced to the Scottish Parliament later this year.
The revised Bill will set a new statutory target for decarbonising heating systems by 2045, rather than a prohibition of polluting heating systems, alongside action to reduce fuel poverty.
Propertymark provided a thorough response to the consultation on the Scottish Government’s original proposals for a Heat in Buildings Bill in March last year. Thanks to responses from Propertymark and numerous stakeholders, the Bill will not be continuing in its original form. Many of the measures would have imposed substantial financial strains on homeowners and businesses, according to Scottish Government Ministers.
Implications for Property Owners and the Role of Propertymark
Ministers have also said that amended proposals will be brought forward to allow provisions to boost heat network development to serve large non-domestic premises, including powers to require public sector buildings to link to district heating when available.
Although subject to additional consideration, there will be powers to establish minimum energy efficiency standards for owner/occupier and non-domestic properties.
Regulations will be enacted under existing powers to implement a minimum energy efficiency standard in the private rented sector. These regulations would mean all privately rented properties, as far as possible, reach Energy Performance Certificate C.
The Bill sits alongside work on a Social Housing Net Zero Standard and regulations to reform Energy Performance Certificates.
Propertymark has long argued for new grants and financial incentives to relieve the costs of transitioning to cleaner heating systems that under current plans could be overwhelming for property owners and landlords.
And because of the ambitious proposed deadlines for enacting energy efficiency standards, Propertymark advises the Scottish Government to set interim targets and issue simple guidance to guarantee a realistic transition for property stakeholders.
Furthermore, due to the specific challenges experienced by more remote and rural areas, Propertymark is also calling for tailored outcomes and possible exemptions where alternative clean heating options are less suitable.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, said:
“While Propertymark agrees that carbon emissions need to be cut from buildings and homes, there has always been the question as to how this should be delivered in a financially sustainable way. It is therefore encouraging to see that the Scottish Government is revisiting its aim to be less prescriptive. Propertymark has always urged policymakers to avoid a one-size-fits-all approach to energy efficiency, so any acknowledgment that different properties need different solutions are welcome.
“However, certainty is what landlords and homeowners require now. There are outstanding questions surrounding how much landlords and homeowners need to invest in their properties, when EPC targets must be achieved, and what financial help can be obtained. The Scottish Government will struggle to achieve their net zero targets until these questions are answered.”
