The introduction of proposed EPC C targets in Scotland could lead to a reduction in the supply of private rented properties and an increase in rents, according to organisations responding to a Scottish government consultation.
The proposals suggest that private rented sector (PRS) homes would need to achieve a reformed EPC Heat Retention Rating (HRR) of band C for new tenancies from 2028 and for all tenancies by 2033.
Respondents to the consultation highlighted concerns that older, particularly stone-built, properties may be unsuitable for the upgrades. They also warned of potential unintended consequences such as inadequate ventilation leading to damp and mould. The cost of improvements was a significant concern, especially for landlords in low-rent or rural areas, with some suggesting the expense could force landlords out of the market.
The Scottish government has proposed exemptions, including a £10,000 cost cap and a 12-month lead-in period for improvement works. A six-month temporary exemption for landlords inheriting or purchasing a property with a sitting tenant was criticised by respondents as too short.
John Blackwood, chief executive of the Scottish Association of Landlords (SAL), stated that the new energy-efficiency standards must be fair to landlords. He called for ministers to create a minimum energy efficiency standard (MEES) that is fair, achievable, and affordable, with at least a two-year lead-in time between the introduction of the Heat Retention Rating from April 2028 and the minimum standard.