Chamber and committees

Addressing fuel poverty, climate change and tackling energy efficiency have been long term priorities for the Scottish Government.

Improving the energy efficiency of homes in the PRS sector is part of an overall framework of standards and support across all tenures and buildings through our Energy Efficient Scotland programme. This is early action, going ahead of the owner occupation sector in recognition of the existing levels of poor energy efficiency within this tenure, and following the progress of the social sector. The higher levels of Fuel Poverty in the PRS supports the need to press ahead with this early action in the PRS.

For these reasons, there is a further commitment that all PRS properties should be at EPC C by 2030, where technically feasible and cost effective – bringing these homes up to the same standard as owner occupiers.

Our Warmer Homes Scotland Scheme helps homeowners and private rented sector tenants who are on a low income and are struggling to heat their home. The scheme is designed to make their homes warmer through installing a range of energy efficiency measures, who meet the qualifying criteria. Further information and qualifying criteria is available on the Home Energy Scotland https://energysavingtrust.org.uk/scotland/grants-loans/heeps/heeps-warmer-homes-scotland-scheme or by contacting Home Energy Scotland on 0808 808 2282.

The “ Energy efficiency and condition standards in private rented housing: A Scotland’s Energy Efficiency Programme Consultation : Analysis of responses to the public consultation exercise ” was published on 14 November 2017.

The report can be accessed at: https://www.gov.scot/publications/energy-efficiency-condition-standards-private-rented-housing-analysis-responses-public/ .

The regulations require that new tenancies must meet an EPC rating of E from 1 October 2020.

The modelled average cost of upgrading stock with an EPC rating of F or G to meet an EPC E is around £1,140. There is a broad range of support and incentives to help landlords improve the energy efficiency of their properties, including low cost loans which can be accessed via Home Energy Scotland.

The Scottish Government believes that the prospect of a civil penalty of up to £5,000 will be sufficient to encourage landlords to improve the energy efficiency of their properties.

Sitting tenants should not generally be required to vacate their homes for the installation of energy efficiency measures.

The landlord must initially meet the standard when there is a change of tenancy – so for the first two years there will be no need for any tenant decanting. On average, around 60% of PRS tenants live in their home for two years or less, and improvements can be made between tenancies. The backstop date of 31 March 2022 provides landlords with plenty of time to plan and make suitable arrangements where there is no change of tenancy.

If the sitting tenant refused consent to any relevant energy efficiency improvements being made, as the “back stop” date approaches, this is a valid exemption. The ability to refuse consent is similar to that of the Energy Efficiency Standard for Social Housing (EESSH).

Further, to ensure that a landlord’s expenditure on energy efficiency measures is proportionate, a cost cap of £5,000 will apply to get to the EPC E standard, and a further £5,000 to get to the EPC D. This means that low cost measures such as loft insulation and low energy light bulbs, are likely to be installed first, and involve no disruption. If external wall insulation or cavity wall insulation was to be installed, tenants will not need to leave their homes. The only measure which is likely to cause major disruption would be internal wall insulation, though the landlord may qualify for a cost cap exemption.

At backstop dates, or if landlord chooses to upgrade at another time, it is the landlord’s responsibility to adhere to any requirements relating to the tenancy agreement and agree with tenant, as to how the landlord wishes to proceed. We will also continue to work with Citizens’ Advice Scotland, Shelter Scotland and local authorities to ensure that they can support tenants.

The draft regulations require that new tenancies in the private rented sector (PRS) must meet an EPC rating of E from 1 October 2020.

The Scottish Government set up a working group to develop these proposals, and membership included the Scottish Association of Landlords (SAL) and Scottish Land & Estates (SLE), both representing private sector interests. The proposals were consulted upon in 2017, and a final consultation on draft regulations and guidance took place in the summer 2019, which sought to raise awareness of the proposed regulations. Responses informed the development of the draft regulations.

The Scottish Government has continued to engage with SAL and Scottish Land & Estates, to ensure that their members are aware of the forthcoming changes. This includes officials attending area focused meetings held by landlord groups.

The Scottish Government continues to fund free and impartial advice through Home Energy Scotland (HES), including tailored advice for landlords. HES has also promoted these forthcoming regulatory changes to enquirers and on its website, including a short information video.

The Scottish Government will publish draft guidance for landlords in April and will use this to continue engagement with landlords and key stakeholders.

The draft regulations require that new tenancies in the private rented sector (PRS) must meet an EPC rating of E from 1 October 2020.

Citizens’ Advice Scotland (CAS) was part of the working group to develop the proposals, alongside the Existing Homes Alliance, representing tenants’ interests. We have also engaged separately with Shelter Scotland to develop the proposals and raise awareness.

We will continue to engage with CAS and Shelter Scotland, so that new and existing tenants coming to their bureaux or offices, can get relevant advice and support, as well as ensuring that tenants are aware of the regulations coming into effect.

We have also attended, and will continue to attend, area based forum meetings organised by local authorities, which enables direct engagement with locally based housing advice and advocacy groups.

Scottish Government continues to fund free and impartial advice through Home Energy Scotland (HES), to anyone, including private tenants. Our Warmer Homes Scotland Scheme already helps those on low incomes. This is an ideal opportunity to raise their awareness of the forthcoming regulations, as we install energy efficiency measures to make tenants’ homes warmer. For more information and qualifying criteria, contact Home Energy Scotland on 0808 808 2282 or https://energysavingtrust.org.uk/scotland/grants-loans/heeps/heeps-warmer-homes-scotland-scheme .

The draft regulations require that new tenancies in the private rented sector (PRS) must meet an EPC rating of E from 1 October 2020.

The Scottish Government expects local councils to take a targeted approach to enforcement. This means initially gathering evidence about non-compliance; identifying and eliminating barriers to improvement by landlords; and considering how these regulations can be used to strengthen existing programmes.

The Scottish Government will develop a toolkit to support local authorities’ gathering of information and a guidance document to provide scenarios and practical assistance to local authority staff involved in applying the regulations within their area.

This learning will then be used to shape policy development in partnership with local authorities strengthening enforcement over time.

As stated in the answer to S5W-27472 on 27 February 2020, if, in advance of the backstop date, the tenant has not changed, and has legitimate reasons to refuse access for installing measures, the regulations allow the landlord to seek an exemption based on this precise situation.

There are further existing safeguards for tenants from eviction. A landlord must provide the correct notice and obtain an eviction order from the First-tier Tribunal (Housing and Property Chamber) before a property can be recovered. Depending on the tenancy agreement, there could be penalties for misleading a tenant into leaving.

Of course, should the landlord wish to subsequently let the property again, they will face delay and additional expense to find a new tenant. They will of course need to meet the energy efficiency regulations .

All answers to written parliamentary questions are available on the Parliament's website, the search facility for which can be found at http://www.parliament.scot/parliamentarybusiness/28877.aspx .

The Scottish Government regularly met with local authorities, individually or as part of a group before and during the 2019 consultation and continues to have discussions with local authorities.

The Scottish Government set up a short life working group on enforcement, made up of representatives of local authorities, that met several times to discuss and inform proposals for enforcement before and after the 2019 consultation.

The Scottish Government continues to take part in a number of local authority forums to discuss the role of local authorities in enforcement.

Senior officers from the Scottish Government met with COSLA on a number of occasions to discuss the role of local authorities in enforcing the regulations for energy efficiency in the PRS.

The Scottish Government will publish draft guidance in April and will use this to continue engagement with local authorities and key stakeholders.

Home Energy Scotland (HES) are currently running a campaign to raise awareness of the available financial assistance, through a combination of social media, radio adverts and direct mail to highlight the support that is available to improve the energy efficiency of people’s homes.

HES loans, launched in May 2017, offer owner occupiers and some private sector landlords interest free loans for energy efficient measures. Over the past three financial years, a total of over £70 million has been made available under Scottish Government Energy Efficiency loan schemes. We are currently offering cashback on some energy efficiency and renewable energy measures to help people meet part of the costs of improving energy efficiency of their homes.

We have also recently amended the qualifying rdSAP (Reduced data Standard Assessment Procedure) rating for Warmer Homes Scotland, the Scottish Government’s national fuel poverty scheme, from 64 to 67 enabling more households who are struggling to pay their energy bills to qualify for support.

We also currently offer cashback on some energy efficiency and renewable energy measures to help people meet part of the costs of improving energy efficiency of their homes.