Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations 2026: partial BRIA

Introduction

This partial Business and Regulatory Impact Assessment (BRIA) accompanies the

Scottish Government Consultation on the proposed regulations to introduce minimum energy efficiency standards (MEES) in domestic private rented sector (PRS) properties.

If the regulations are passed as proposed, they will introduce a MEES for domestic properties in the PRS. This would mean that landlords would be required to install energy efficiency measures to reach Energy Performance Certificate (EPC) Heat Retention Rating (HRR) band C, as far as possible, before letting a property. This would apply to new tenancies from 2028 and to all PRS properties by the end of 2033.

The HRR will be shown on reformed EPCs, which are due to be introduced in Autumn 2026. It is a fabric based rating that provides information on how well the property retains heat (i.e. how well insulated a home is). This is in contrast to the current main EPC rating, the Energy Efficiency Rating, which instead also takes account of the cost of energy.

We are in the process of reforming EPCs and are working with the UK Government on the new methodology: the Home Energy Model (HEM). We anticipate HEM and associated infrastructure to produce HEM EPCs will be in place in the second half of 2026. We intend to update our analysis with interim modelling for the final BRIA to reflect this. The assessments made in this partial BRIA are based on the information we have from current EPCs and therefore some of the figures and impacts are subject to change.

This document provides an initial assessment of the impact of the proposed regulations on various parties and sectors within the Scottish economy. The analysis and data provided will also help readers to respond to the questions posed in the consultation document.

We will publish the final BRIA alongside the final regulations.