Draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations: consultation

3. PRS MEES consultation

3.1 Purpose and objective of this consultation

We are seeking to engage with a broad range of stakeholders on the proposed MEES for the domestic PRS in Scotland, while also raising awareness of the proposal for those who may be impacted.

This consultation document includes a copy of the draft regulations for review (Annex A), as well as our policy proposals and planned dates for introduction and compliance with the standard. We highlight where we propose revisions to these regulations compared to those laid but withdrawn in 2020.

We are also seeking views on changes to the Energy Act 2011 (the Energy Act) in line with the UKG proposals^[26].

3.2 Summary of proposals

The Draft Energy Efficiency (Private Rented Property) (Scotland) Regulations (the Draft Regulations) would prohibit the letting of properties which fall below the minimum standard of energy efficiency until the landlord has made any relevant energy efficiency improvements which apply to the property. This will make provision for the introduction and enforcement of minimum standards of energy efficiency within the domestic PRS.

The Draft Regulations are designed to tackle the least energy-efficient properties in Scotland, using reformed EPCs as the measure for this standard. At the time of this consultation, EPCs are being reformed in Scotland, with new EPC regulations due to be laid in Parliament in September 2025 and brought into force in autumn of 2026. These reforms will introduce a new rating, the HRR, on domestic EPCs. The Draft Regulations propose to introduce a prohibition on the letting of domestic properties which do not meet EPC HRR band C^[27] until the landlord has made energy efficiency improvements to the property as provided for by the regulations.

We are proposing for the Draft Regulations to be implemented in a phased way and intend for them to apply to new tenancies (when being let to a new tenant) from 2028 and to all privately rented homes by the end of 2033.

We acknowledge that the current energy efficiency of properties across the sector will vary as well as the different individual challenges that landlords may face in complying with the Draft Regulations. To provide flexibility and accommodate individual circumstances, the Draft Regulations set out the details of a number of exemptions which will be available to landlords and be applicable in certain circumstances. These exemptions relate to consent; negative impacts on fabric or structure of property; cost cap; and temporary exemptions.

Our Draft Regulations propose that local authorities will carry out enforcement and compliance duties. Powers to gather information to support the work being undertaken by local authorities may be done through the serving of a compliance notice. As the enforcement authority, local authorities would have powers to serve a penalty notice for individual acts of non-compliance. This can include financial penalties, a publication penalty or both. Such penalty notices can be the subject of an appeals process.

The Draft Regulations have been based on the withdrawn 2020 regulations, with amendments made to take into account the feedback received through consultations, renewed climate change and fuel poverty targets, and inflation since 2020. This consultation provides our rationale for amendments to the withdrawn 2020 regulations and seeks views on:

• The proposed minimum standard to be met
• The timescales for compliance
• The properties that are in scope of the regulations
• The exemptions to be included
• The level of cost cap exemption
• The approach to monitoring and compliance of these regulations.

3.3 Amendment to the Energy Act 2011

Through this consultation, we are also seeking views on amending the Energy Act 2011, to ensure consistency in powers across the UK, and increase the maximum level of fine that could be imposed within regulations to £30,000. This is with the intention of future proofing Scottish Ministers powers to make regulatory changes and will not impact the proposals for PRS MEES regulations in this consultation.