Energy efficiency in social housing: guidance for landlords - revised 2020

3 The EESSH ratings and methodology

3.1 The EESSH aims to encourage landlords to improve the energy efficiency of social housing in Scotland. It sets a single minimum Energy Efficiency (EE) rating for landlords to achieve that varies dependent upon the dwelling type and the fuel type used to heat it. The ratings reflect that some dwelling types can be more or less challenging to improve than others.

The EESSH 2020 milestone

3.2 The minimum EE ratings for the 2020 milestone are set out in Table 1. The target was defined by reference to minimum ratings in the UK Government's Standard Assessment Procedure for Energy Rating of Dwellings (SAP 2009). The table also includes the equivalent ratings for SAP 2012. Note that the SAP ratings for gas are the same for both iterations of SAP. In terms of Energy Performance Certificates (EPCs), these ratings straddle Band D (55-68) and Band C(69-80).^[8]

Table 1: EESSH minimum ratings for 2020 (by dwelling type)

3.3 For dwellings that do not use gas or electricity for heating, the EESSH target is the same as the SHQS. SHQS element 35 sets an energy efficiency target for "other fuels" at either National Home Energy Rating (NHER) rating of 5 or SAP 2001 rating 60. The equivalent ratings for SAP 2009 and 2012 are shown in Table 2.

Table 2: EESSH minimum ratings for 2020 (other fuels, all dwellings)

3.4 Social landlords must ensure that they achieve the relevant minimum EE ratings by the first milestone of 31 December 2020 for all applicable social housing.

The EESSH 2032 milestone

3.5 Informed by consultation responses, the EESSH Review Group considered proposals and agreed a new EESSH2 milestone as follows:

All social housing meets, or can be treated as meeting, EPC Band B (Energy Efficiency rating), or is as energy efficient as practically possible, by the end of December 2032 and within the limits of cost, technology and necessary consent.

3.6 The 2032 milestone will be supported by a formal review in 2025. Air Quality and Environmental Impact will be included as part of the review, and no social housing should be re-let below EPC Band D from December 2025, subject to temporary specified exemptions.

The Scope of the EESSH

3.7 The scope of the EESSH is the same as the SHQS: they both apply to self-contained homes, including a full range of facilities for the use of occupiers, provided for the purpose of social rents, and usually subject to tenancy agreements based on the model agreement for secure tenancies. ^[9] This includes sheltered housing, vacant property, property marked for demolition, and secure tenancies under the mortgage to rent scheme.

3.8 The scope of the EESSH excludes the following types of housing:

• Houses purchased by former tenants. These are the responsibility of owners. The Scottish Government is consulting on energy efficiency standards in owner-occupied homes.^[10]
• Hostels with common facilities for food preparation. These are not self-contained units, but may be subject to standards for houses in multiple occupation.^[11]
• Intermediate or mid-market rents. Thesewill ordinarily be let under private residential tenancies or assured tenancies and will be subject to energy efficiency standards for private rented housing.^[12]
• Mortgage to shared equity. Unlike mortgage to rent, the occupier retains ownership and owner-occupier energy efficiency standards will apply.
• Commercial sub-lets. Housing let commercially will be subject to energy efficiency standards for private rented housing.
• Amenity blocks for Gypsy/Traveller sites. Amenity blocks should meet the energy efficiency standard set out in guidance on minimum sites standards .^[13]