Update on the Minimum EPC Requirement

New EPC regulations came into effect on 1 April 2022.

The Scottish Government has informed the Scottish Association of Landlords (SAL) of an amendment to the minimum EPC regulations.

The “E” standard will be removed, and private rented properties must achieve an EPC rating of D by 31 March 2025. And an EPC rating of D must be achieved if there’s a change of tenancy from 1 April 2022, so landlords will have 1 year to comply from the date the regulations begin.

The regulations provide a few exemptions, such as:

  • In an event where other owners within a block of flats don’t consent to work being carried out to common parts of the building. Or if tenants themselves do not consent for work to be carried out.
  • If it’s not technically feasible to perform work.
  • When the cost of work exceeds £10,000
  • When permission to carry out improvements can’t be obtained with a listed property, or in a conservation area.

The new regulations mean that landlords will only be required to carry out improvements if the cost of purchasing and installing new equipment can be financed by a grant or loan from the Scottish government.

The Scottish Government has created the Private Rented Sector Landlord Loan, interest-free for five or fewer properties, or with an interest rate of 3.5% for landlords managing larger portfolios.

These regulations will be enforced by local authorities, and fines can be issued to owners who fail to comply with the minimum standard or provide inaccurate information in regards to the exemptions register.

If you need assistance in improving your EPC rating, you can refer to SAL’s fact sheet here. However, this is not the ideal tool to ascertain what improvements your property needs to achieve the standard EPC rating.

Additional advice is required from an expert who will assess your property, providing you with detailed suggestions and reasons for improvements.