Short-Term Lets and EPC Requirements in Scotland: What Hosts Need to Know

The rise of Airbnb, holiday cottages, serviced apartments, and other short-term lets has created new opportunities for property owners across Scotland.

However, many hosts are unsure whether Energy Performance Certificates (EPCs) are required for their properties and what their legal obligations might be.

Understanding the rules can help hosts stay compliant, avoid potential issues when marketing their property, and provide guests with greater transparency about energy efficiency. Here is what Scottish short-term let hosts need to know about EPC requirements.

What Is an EPC?

An Energy Performance Certificate (EPC) measures the energy efficiency of a building and provides it with a rating from A (most efficient) to G (least efficient). The certificate also includes recommendations that could help improve the property’s energy performance and reduce running costs.

EPCs are commonly required when properties are sold, rented, or constructed. The certificate remains valid for 10 years unless significant changes are made to the property that affect its energy performance.

Do Short-Term Lets Need an EPC in Scotland?

In many cases, yes.

If a property is being marketed or made available for short-term accommodation, an EPC may be required depending on how the property is used.

Generally, an EPC is needed if:

• The property is a self-contained building or flat.
• Guests have exclusive use of the accommodation.
• The property is advertised for short-term rental.
• The accommodation is not exempt under EPC regulations.

This means that many Airbnb properties, holiday cottages, lodges, and self-catering apartments in Scotland will require a valid EPC.

Properties That May Be Exempt

Some types of accommodation may not require an EPC.

Common examples can include:

• Rooms rented within an owner’s primary residence where guests do not have exclusive use of the entire property.
• Certain temporary buildings.
• Properties with a very limited annual occupancy period where specific exemption criteria are met.
• Some listed buildings where compliance would unacceptably alter their character or appearance.

Exemptions can be complex and depend on the specific circumstances of the property. Hosts should seek professional advice if they are unsure whether an exemption applies.

Displaying EPC Information in Advertisements

Where an EPC is required, the energy performance rating should typically be included in property advertisements. This allows prospective guests to understand the property’s energy efficiency before booking.

Online listings, agency websites, and other forms of advertising should accurately reflect the property’s current EPC rating where applicable.

How EPC Ratings Can Benefit Hosts

While EPC compliance is a legal requirement in many situations, improving a property’s rating can also provide commercial benefits.

Energy-efficient accommodation may offer:

• Lower heating and electricity costs.
• Greater comfort for guests throughout the year.
• Improved environmental credentials.
• A competitive advantage when attracting eco-conscious travellers.
• Potential increases in property value.

As energy costs remain a consideration for both owners and guests, a higher EPC rating can be a useful selling point.

Common EPC Recommendations for Holiday Lets

Many short-term let properties can improve their rating through relatively straightforward upgrades.

Recommendations often include:

• Increasing loft insulation.
• Improving wall insulation where appropriate.
• Installing low-energy LED lighting.
• Upgrading older heating systems.
• Adding modern heating controls and thermostats.
• Improving glazing and reducing draughts.

The recommendations listed within the EPC provide a tailored roadmap based on the property’s current condition.

Short-Term Let Licensing and EPCs

Scotland’s short-term let licensing scheme has introduced additional compliance requirements for many operators.

While licensing and EPC regulations are separate legal frameworks, local authorities may require documentation relating to property safety and standards as part of the licensing process.

Ensuring that a valid EPC is available where required helps demonstrate compliance and can prevent delays when dealing with property-related regulatory matters.

When Should Hosts Arrange an EPC?

Hosts should arrange an EPC before advertising a new short-term let property if one is required and not already in place. Since certificates remain valid for 10 years, many properties may already have a valid EPC available.

If significant energy-efficiency improvements have been carried out since the previous assessment, obtaining a new EPC may help reflect the property’s improved performance.

Final Thoughts

Many short-term let properties in Scotland require a valid Energy Performance Certificate, particularly self-contained accommodation offered to guests on a short-term basis.

Understanding whether your property requires an EPC, ensuring advertisements display the correct information, and considering energy-efficiency improvements can help keep your business compliant while enhancing the guest experience.

For hosts who are unsure about their obligations, a qualified EPC assessor can provide guidance on requirements and help ensure that the property meets current regulations.