It’s time to act on new energy efficiency standards

Bob Cherry says landlords should be aware

Landlords who fail to comply with new energy-saving legislation may soon face heavy fines and be forced to leave property empty.

The Scottish Government has set out minimum energy efficiency standards for privately rented properties, with a view to improving energy efficiency in all homes and reducing carbon emissions by 23 per cent by 2032.

Where properties are let or re-let after 1 April next year, landlords must ensure that they meet the minimum standard – Energy Performance Certificate Band E.

Furthermore, all properties including existing lets will be required to comply with this by 31 March, 2022.

The Scottish Government expects 30,000 properties will be affected by this first series of measures.

For properties which currently have the lowest standards of energy efficiency – Band F or G – landlords must complete a minimum standards assessment and bring the property up to that standard within six months.

Many properties in rural areas may fall into these categories, in particular older properties and former estate or farm workers’ cottages, which often lack modern windows and doors, or sufficient loft or cavity wall insulation, all of which has a significant impact on heat retention.

Properties built before 1919 typically have solid walls, with no cavity, but it is still possible to insulate them, using a different approach.

Following this first deadline, a further round of legislation comes into force, whereby the minimum standards will be raised further – to a band D – by 31 March, 2025.

This is expected to affect an additional 65,000 properties in Scotland.

The government in Scotland has given landlords a little more breathing space than in England, where the legislation came into force on 1 April.

However, fines will be imposed on landlords failing to comply and, in England, these are up to £4,000.

In addition, landlords are obliged to leave a property standing empty if it is in breach of the law.

Homes which currently have the lowest energy efficiency ratings may require considerable expenditure to bring them up to standard.

However, there are some simple measures which are relatively inexpensive which can make a significant difference to the rating.

Loft insulation is relatively inexpensive, as is underfloor insulation.

Replacing an old boiler with a new energyefficient one also helps considerably.

Some vulnerable tenants may also attract grants for improvements to the property where they live, in certain cases.

For all types of tenant, loans are usually available to landlords, in many cases on an interest-free basis, to carry out energy efficiency work, under schemes organised by the Energy Saving Trust and in line with the Scottish Government’s affordable warmth initiative.

In addition, the Scottish Government is currently proposing a cost cap of £5,000 per property and is considering allowing an additional time period for works to be completed in certain circumstances.

But landlords should be planning now so that energy-efficiency improvements can take advantage of empty periods, lease breaks or be included as part of on-going maintenance.