Minimum EPC Requirements for Scottish Landlords

The Scottish Government is introducing new energy-efficiency rules for private rental homes.

Under forthcoming regulations, all privately rented properties must meet at least an Energy Performance Certificate (EPC) Band C. The timetable is strict: new tenancies must already comply by 2028, and all tenancies (new or existing) by 2033. This marks a big change: as of today, over half of Scotland’s 300,000 rental homes fall below band C, and roughly 14% are in the lowest bands (F or G). In fact, nearly 44% of Scotland’s private tenants currently live in fuel poverty, and so the government is pushing for upgrades that can reduce energy bills.

Timeline and Standards

• EPC Band C by 2028 (new lets): All new private tenancies must achieve EPC band C or better by 2028.
• EPC Band C by 2033 (all lets): After 2028, the requirement extends to existing tenants when leases are renewed or re-let, with full compliance by 2033.
• No current minimum: Currently, Scotland has no minimum EPC for private rentals. These will be the first mandatory Minimum Energy Efficiency Standards (MEES) for landlords.
• New EPC system (2026): A reworked EPC system will be introduced (likely in 2026) focusing on “Heat Retention” (the building’s fabric quality) and other metrics. Landlords will eventually need a new EPC under this system. The draft rules say you cannot rely on old EPCs for compliance – you’ll need a fresh certificate meeting the new standard.

Exemptions and Support

Landlords will have some flexibility under the draft rules. Key points include:

• Technical exemptions: You won’t be forced to install upgrades that are technically unsuitable (for example, if a required consent from neighbours or planners cannot be obtained).
• Cost cap: A per-property cap (suggested around £10,000) will limit how much you must spend on improvements. The government’s draft explicitly mentions a £10k cost cap for all work required for a substandard rented home.
• Register of exemptions: Any exemption claimed (technical or cost) must be registered in a new public PRS (Private Rented Sector) Exemptions Register. This keeps a record of why a home couldn’t be upgraded.
• Financial support: Practical help is available to landlords. For example, zero-interest loans are offered through Home Energy Scotland (up to £38,000 per property, or £100,000 for a small portfolio). In addition, fuel-poor tenants may qualify for grants (e.g. ECO4 scheme) to install insulation or heating improvements.

What Landlords Should Do

• Assess your properties early. Check current EPC ratings and identify homes below C. Those with E, F or G ratings should be top priority.
• Plan upgrades. Spread the cost by phasing improvements over the next few years. Common measures include loft/wall insulation, double glazing, and efficient heating. Use government loans/grants where possible.
• Stay updated on the new EPC rules. The reformed EPC (with Heat Retention Rating) will be the official compliance test. Ensure you obtain a new EPC under the updated scheme and budget for any needed works.
• Consider exemptions. If a particular upgrade is truly impossible or would ruin the building, prepare evidence (e.g. surveyor reports) to claim a technical exemption. Similarly, track expenses if nearing the £10k threshold.
• Seek professional advice. Given the complexity, consult a solicitor or energy consultant for personalised guidance. Early legal advice can help ensure leases and service charges account for upgrade costs.

Staying ahead of these energy rules is crucial. Landlords should begin preparing now – the deadlines are fixed, and failure to comply could bar letting the property and lead to enforcement action

The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.