The Scottish Government is proposing to introduce rules to ensure properties within the private rented sector have a minimum Energy Performance Certificate (EPC) rating of E at each change of tenancy.

Coming in to force from the 1st April 2020, they intend to phase in this target and introduce EPC rating increases over time.

From 1st April 2020, any new tenancy will require the property to have an EPC of at least band E.

Then by 31st March 2022, the Scottish Government would like all properties to have at least an EPC band of E.

From the 1st April 2022 the band rating for any new tenancy will move to at least an EPC rating of D.

Then by 31st March 2025, all properties will need to have at least an EPC band of D.

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The legislation is still not through on these rules, which we understand will have a significant impact on many rural properties and landlords. Draft legislation is expected in early 2019.  

There are concerns that, once passed, this legislation will have a negative effect on the rental market. A lot of properties may be removed from the rental market as the cost of implementing the minimum EPC rating will not be covered by the rents which can only mirror what the market will stand.

Here at The Estates Office, we will continue to work with our landlords to establish the best and most cost-effective way to comply with the new legislation.