Local Housing Strategy: guidance 2026

House condition

In the Housing (Scotland) Act 2006, Section 10 introduced three statutory requirements for local authorities, and local authorities should include a summary of these in a LHS.

Below Tolerable Standard (BTS)

This requirement is to set out a strategy for ensuring compliance with Section 85(1) (duty to close, demolish or improve houses which do not meet the tolerable standard) of the Housing (Scotland) Act 1987 (c. 26).

Local authorities should evidence the extent of BTS housing in the local authority area by providing details of numbers, location and type. A LHS should include information on what mechanism(s) is in place to monitor BTS levels and what powers and actions the local authority uses to address BTS properties. The BTS strategy should be linked to strategies for assistance, landlord registration, homelessness, housing options, adaptations, and energy efficiency. Local authorities will be aware of Advisory Guidance on the Tolerable Standard for local authorities and additional guidance relating to the tolerable standard on satisfactory fire detection and satisfactory carbon monoxide detection.

Housing Renewal Area Policy

This requirement is the local authority’s policy for identifying parts of its area for designation under Section 1 of the Housing (Scotland) Act 2006 (asp 1). Local authorities are encouraged to consider Advisory Guidance on Housing Renewal Areas and Repair, Improvement and Demolition.

A policy is required even if there is no intention to immediately declare a Housing Renewal Area, as the policy should be ready to support housing improvement as and when required, including the criteria against which an area would be identified.

Local authorities should include information in their LHS on what process is in place for identifying Housing Renewal Areas and what powers and actions the local authority plans to use to address them.

Scheme of Assistance Strategy

This requirement is to set out a strategy for improving the condition of houses by providing or arranging for the provision of assistance under Part 2 of the Housing (Scotland) Act 2006 (asp 1).

Local authorities should include information in their LHS on how their Scheme of Assistance will be used to address substandard private housing, implementing the Below Tolerable Standard strategy as appropriate. Local authorities should note the interaction between work to improve energy efficiency and house condition in private housing.

Summary of areas expected to be included in LHS

a. evidence that the local authority has a Below Tolerable Standard Strategy in place together with a summary of the level of Below Tolerable Standard in the area, how the local authority is currently addressing Below Tolerable Standard properties and what future action it plans to take.

b. evidence that the local authority has a Housing Renewal Area Policy in place together with a short summary of how Housing Renewal Areas will be identified and what powers and actions will be used.

c. evidence that the local authority has a Scheme of Assistance Strategy in place together with a short summary explaining how it will be used to improve standards.

Social Rented Sector

The Scottish Housing Quality Standard (SHQS) requires all social landlords to achieve a minimum level of housing quality, including energy efficiency. The SHQS is funded through social landlord investment plans, including prudential borrowing by local authorities. Even if the local authority is not directly responsible for the provision of social housing, it is responsible for ensuring that social housing meets the tolerable standard.

The SHQS target is set out in the Scottish Social Housing Charter and progress towards meeting this target is monitored by the independent Scottish Housing Regulator.

The Energy Efficiency Standard for Social Housing (EESSH) sets out the minimum energy efficiency ratings that landlords are expected to meet across their housing stock. The first EESSH milestone was that all social housing meets a minimum energy efficiency rating, by house type and fuel, by the end of December 2020. The second EESSH milestone was that all social housing met or could be treated as meeting, EPC Band B, or is as energy efficient as practically possible, within the limits of cost, technology and necessary consent, by the end of December 2032. Additionally, no social housing could be re-let below EPC Band D from December 2025, subject to temporary exemptions. A review of EESSH2 commenced in 2022 to bring it in line with net zero.

As part of the review, the Scottish Government ran a consultation, which closed in March 2024, to invite views on proposals for a new Social Housing Net Zero Standard (SHNZS). This will replace the post-2020 Energy Efficiency Standard for Social Housing, or EESSH2. The consultation sought views on a standard that will require social landlords to improve fabric efficiency, and install clean heating, across their stock, where it is technically feasible and cost-effective to do so.

The EESSH2 target has been suspended while the review is underway. Interim guidance for landlords was issued in October 2022. This sets out that landlords are not required to demonstrate performance against the EESSH2 target while the review is ongoing, but emphasised the importance of investment where possible, especially where energy use can be reduced.

Whilst the review is underway (and the 2025 and 2032 EESSH milestones suspended) social landlords should continue to invest in energy efficiency measures to help reduce running costs, and in zero emissions heating systems where appropriate.

Summary of areas expected to be included in LHS

a. a summary explaining how non-exempt stock, which has not achieved Scottish Housing Quality Standard and an explanation around how this will be brought up to standard together with information on how this will be funded.

b. a summary explaining how exemptions will be tackled and abeyance properties are kept under review as technology develops and tenants/owners change together with information on how this will be funded.

c. a summary on any housing stock that does not meet the Scottish Housing Quality Standard together with information on what plans it has for bringing it up to standard. Any housing where the standard cannot be met should be highlighted as either exempt stock or that action is currently in abeyance and how this is being kept under review.