Owners of all rental properties in Scotland now have less than a year to get ready for new energy efficiency regulations. Called Energy Efficient Scotland, the deadline is 1st April 2020. After that date, all new tenancies will require a minimum EPC rating of E. Any renewal contract for a current tenant will also apply from the date of the renewal. Current tenancies where there is no set term, a rolling month-by-month contract for example, will need to comply by 1st April 2022. Due to the nature of this area of the industry, student lettings will be among the first to comply with new regulations.
Energy Efficient Scotland Won’t Stop There
Nicola Sturgeon, First Minister for Scotland, announced Energy Efficient Scotland in May 2018. If your property or properties already comply with a D rating, there is nothing you need do now but you should also be aware that further changes are planned. Any tenancy changes after 1st April 2022 will require that the property meets a minimum D rating. All other properties such as those with ongoing and rolling tenancies will need to comply with the D rating by 2025. Holyrood is yet to set out details for the 2025 arrangements; these are expected later in 2019. Scotland is still yet to decide on whether to enforce a minimum C rating by 2030.
What Will Happen to Non-Compliant Landlords?
Scotland is determined to meet international commitments for energy efficiency. That’s why these targets are clearly define, albeit with generous timeframes. However, the penalties of non-compliance will be severe in the future to discourage laxity and push to make Scotland as energy efficient as possible. Landlords who do not upgrade their property to meet the new ratings will face a minimum fine of £4,000.
While Sturgeon wanted to take positive actions to make Scotland greener, there was a second social issue. Private renters often have less money than homeowners yet higher bills for energy. This will redress the balance in allowing warmer homes in winter that are cheaper to heat and maintain warmth. Of all renting groups, students generally look for energy efficiency measures to save money.
Why You Should Get Ready Now
If your rental property in Scotland does not comply with the minimum required E rating, this summer is the ideal time to improve. You still have next summer for students occupying during the 2020-21, but why leave it to the last minute? Check the following:
- How long since you last had new loft insulation?
- Check the boiler and heating system, and ensure the boiler has insulation
- Unused chimneys? Brick them up. You’ll also create more space
- Draught proof the interiors as cold spots lead to higher settings