Technical Notes 2025, Issue 140 - Draft Proposals for Minimum Energy Efficiency Standard Regulations for Domestic Private Rented Sector
The Scottish Government has published the Draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations for consultation from 6 June 2025 to 29 August 2025. The report proposes introducing Minimum Energy Efficiency Standard (MEES) regulations for domestic Private Rented Sector (PRS) properties. This Technical Note provides a summary of the Scottish Government proposals and a recommended Council response to the consultation questions (see Appendix A).
Rationale for the Proposals
- The PRS in Scotland is made up of around 300,000 homes and has some of the highest rates of fuel poverty, with approximately 44% of people in privately rented homes living in fuel poverty. Around 48% of PRS properties are at Energy Performance Certificate (EPC) band D or below, and the sector has the highest percentage of EPC band E, F or G rated properties across tenures at 14%, compared to 5% in the social rented sector and 11% in the owner-occupied sector View the Scottish House Condition Survey: 2023 Key Findings.
- The way in which we heat our buildings accounts for around 19% of Scotland’s total emissions, making it the third largest source of greenhouse gas emissions in Scotland. Improved insulation and other energy efficiency measures are estimated to reduce greenhouse gas emissions from PRS properties by 5% while also improving housing quality, reducing energy costs for tenants and facilitating the transition to clean heating systems
- Removing poor energy efficiency as a driver of fuel poverty and reducing greenhouse gas emission levels to mitigate Scotland’s contribution to climate change are priorities for the Scottish Government. Read the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022.
Scottish Government Policy Context
- The Energy Act 2011 grants powers to Scottish ministers to develop domestic energy efficiency regulations including over PRS properties thus constituting legislative grounds for prohibiting properties that do not comply with set obligations such as energy efficiency standards from being let
- The Draft MEES regulations, which were consulted on in 2019 and approved by Parliament in 2020, were withdrawn due to economic impacts from the Covid-19 pandemic. Therefore, the current consultation on PRS MEES seeks to reintroduce the regulations, with allocations of exemptions and enforcement criteria
- The Scottish Government’s 2021 Heat in Buildings Strategy outlined its intention to revise their proposals to regulate energy efficiency in the domestic PRS in line with recommended action from the Climate Change Committee to deliver on the Scottish Government’s net zero targets
- Scottish Government also published its Fuel Poverty Strategy in 2021 which reinforced the commitment to regulate energy efficiency and the role these regulations can have in removing poor energy efficiency as a driver of fuel poverty
- A series of phased targets for energy efficiency standards and the prohibition of fossil fuel based heating systems in the public sector estate by set dates are expected in the forthcoming Heat in Buildings Bill, which was consulted on between November 2023 and March 2024 (PNCA/005/23/NS)
- The recent Heat in Buildings Bill consultation proposed that the MEES for the private rented sector be set at the equivalent to EPC band C. While earlier proposals allowed compliance either by achieving this rating or by installing a prescribed list of energy efficiency measures, the Scottish Government now intends to exclude the list of measures route for PRS landlords. This change reflects the fact that PRS landlords are already required to hold a valid EPC before letting a property, and aims to:
- Ensure consistency in the standard applied across all PRS properties
- Promote fairness for tenants, who cannot independently install additional measures to improve comfort beyond the prescribed list
- Reduce confusion for landlords and tenants on what is required by the standard
- The Scottish Government undertook a consultation on the proposed Social Housing Net Zero Standard in 2023, to replace the second Energy Efficiency Standard for Social Housing (EESSH2). The new standard aims to align with Scotland’s net zero targets and includes a requirement for social landlords to install specified insulation measures, where feasible, by 2028
- Scottish Government also undertook a consultation on reforms to Energy Performance Certificates (EPC) for buildings in autumn 2023, as set out in the Council’s Technical Note 2023 issue 146, to incentivise building fabric improvements and the adoption of non-polluting heating systems. The Scottish Government will lay revised EPC regulations in Parliament during 2025, with an intention to bring them into force in 2026, subject to discussions with the UK Government and other devolved administrations
- Key aims of the EPC reforms are to incentivise improved fabric efficiency of properties (such as insulation) and the adoption of low-emission heating systems (such as heat pumps, heat networks and modern electric storage heaters)
Accordingly, poorly insulated buildings would score lower under the proposals than well-insulated buildings and buildings with direct greenhouse gas emitting heating systems (such as gas boilers) would score lower than buildings with low-emission heating systems - The new domestic EPCs will provide three headline ratings:
- Heat Retention Rating (HRR) - this new rating will demonstrate the performance of the building fabric (i.e. how well the building retains heat due to insulation and other factors)
- Energy Cost Rating - similar to the current ‘Energy Efficiency Rating’, this will demonstrate how costs could change as a result of the potential improvement options
- Heating System Rating - which will indicate the emissions and efficiency of the installed heating system
- Using the HRR (The HRR is based on ‘useful energy’ – the modelled space heating and cooling requirement for space heating only, before heat generation efficiency is applied, per square meter of floor area) band C from the reformed EPC ratings (which indicates good insulation levels and energy demands for heating between 71 - 120 kWh/m2/year) as the measure for setting the PRS MEES is aimed at ensuring commitments to meet this standard can be achieved in a just and proportionate manner, and will be broadly in line with the fabric performance of houses achieving the current EPC Energy Efficiency Rating band C. View the Energy Performance Certificate reform consultation: response
- Broader legislation of relevance to the MEES includes the Local Heat and Energy Efficiency Strategies (Scotland) Order, which requires local authorities to prepare, publish and update a Local Heat and Energy Efficiency Strategy (LHEES) and accompanying Delivery Plan to identify building stock improvements needed to support Scotland’s statutory target to reach net zero greenhouse gas emissions by 2045, under the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 and a target that by 2040, as far as reasonably possible, no household in Scotland is in fuel poverty, as defined in the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019.
East Dunbartonshire Council Policy Context
- The Council has set targets to reach net zero emissions from its direct corporate emissions by 2036 and for the East Dunbartonshire area as a whole by 2045. The emissions reduction modelling which was undertaken through the Climate Action Plan’s Evidence and Options Report notes that energy use in domestic buildings accounts for the largest portion of area-wide greenhouse gas emissions, at around 40%. With a majority of properties currently relying on natural gas for heating, the modelling based on Climate Change Committee’s 6th carbon budget’s ‘Balanced Pathway’ illustrates that transition to low emission heating systems, for which improving fabric energy efficiency in buildings is fundamental, would contribute towards achieving 90% emissions reduction (from 2019 levels) by 2045. See Ricardo report template
- East Dunbartonshire’s LHEES and Delivery Plan were approved by Council in December 2024 (EDC/048/24/NR). The LHEES provides a detailed baseline analysis of the building stock, identifies potential technological opportunities for strategic heat decarbonisation and strategic opportunities for prioritised energy efficiency measures in the area, while the accompanying Delivery Plan provides the actions and timescales for implementation
- As set out in the LHEES baseline analysis and home analytics data (Data from Energy Saving Trust Home Analytics dataset version 4.0) for East Dunbartonshire, domestic PRS shows the highest percentage of pre 1919 properties at 12% and second highest percentage of properties falling within EPC bands D to G at around 59%, across tenure types, which indicates poor insulation levels and high energy demands for heating. Approximately 44% PRS homes lack wall insulation, 10% have single / partial glazing and around 74% PRS households are estimated to be in fuel poverty. Furthermore, around 86% PRS properties rely on mains gas as primary fuel for heating, indicating high greenhouse gas emissions in the sector. Setting a MEES for the PRS would therefore have a significant impact on eliminating poor energy efficiency as a driver of fuel poverty and reducing greenhouse gas emissions in the area
- However, as with the forthcoming Climate Action Plan which will set out ways for the Council to deliver on its net zero targets, delivery of many of the opportunities from Council’s LHEES will be subject to additional funding being secured and the lower cost of renewable energy being passed on to consumers resulting in electricity-based heating systems becoming cheaper to operate than direct emitting heating systems.
The Scottish Government’s MEES Regulation Proposals
- The proposed PRS MEES will be phased in implementation, with proposals that MEES will apply to new tenancies from 2028 onwards. By the end of 2033, all privately rented homes would be required to meet EPC HRR band C, which is considered a ‘good level of energy efficiency, irrespective of tenancy changes. The proposals would prohibit the letting of properties that fall below the minimum standard of energy efficiency until the landlord has made any relevant energy efficiency improvements which apply to the property (unless subject to exemptions), as required by the regulations. Read about the Heat in Buildings Strategy - achieving net zero emissions in Scotland's buildings
- Provisions for accommodating flexibility and individual circumstances will be given through proposed exemptions for landlords and tenancies that meet the specified criteria. These exemptions relate to consent, negative impacts on the fabric or structure of property, cost cap and temporary exemptions
- Local authorities will have an enforcement duty, which includes monitoring compliance, issuing enforcement notices and administering exemptions and penalties. This is anticipated to align with the Councils’ ongoing energy efficiency improvement and support programmes such as the Area Based Schemes and EPC regulations enforcement
- Through this consultation, the Scottish Government is also seeking views on amending the Energy Act 2011, to ensure consistency in powers across the UK and increase the maximum level of fine that could be imposed within regulations to £30,000. This is with the intention of future-proofing Scottish Ministers’ powers to make regulatory changes and will not impact the proposals for PRS MEES regulations in this consultation
- Short-term holiday lets are proposed to be exempted from the PRS MEES requirements due to lack of fuel poverty impacts on tenants. However, the emissions impact of this exclusion is not discussed. Furthermore, several tenancies including those that are short-term, lifelong, intergenerational or legally required will be excluded from the MEES requirements (subject to the subsequent prohibition on letting where the standard is not met), to ensure that interventions to meet the standard are appropriate for the nature of the tenancy agreement
- The proposed MEES is intended to contain flexibility and exemptions where those are needed to ensure regulations are fair, affordable and achievable. Therefore, no landlords will be required to install measures which are technically unsuitable for the type of property they own, for which they cannot attain the required consent from tenants, neighbours or planning authorities, or which would be prohibitively expensive. Provisions for exemptions are noted under the following criteria:
- Consent - as required from the current tenant and necessary third parties. The exemption would last five years and reflect any changes to the tenancy and planning regulations
- Negative impacts on fabric or structure of the property - where the landlord has received a written opinion from a relevant professional, advising that installing relevant measures would be inappropriate or have negative impacts on the fabric or building structure. This aims to prevent the unsuitable application of certain improvements based on individual property circumstances
- Temporary exemptions - to address specific circumstances that may arise, such as changes to the landlord, and are intended to be effective for six months
- Cost cap - the maximum investment that a landlord would be required to invest in a single property for required energy efficiency improvements is proposed as £10,000 Further analysis is anticipated to inform on finalisation of a suitable cost cap for these regulations
- The proposed financial penalties have been informed by multiple consultations and through extensive stakeholder engagement, and are therefore considered appropriate:
- £600 - non-compliance for less than six months by the time the penalty notice is served, submission of false or misleading information and failure to comply with a compliance notice in breach of regulations
- £3,000 - where the breach of regulations is six months or longer at the time the penalty notice is served.
- The proposed MEES is anticipated to be proportionate and achievable with reasonable interventions, in accordance with the definition of ‘relevant energy efficiency improvements’ in the Energy Act 2011, where the cost of purchasing or installing can be financed, wholly or partially, by means of funding provided by a grant or loan from the Scottish Ministers
- Accordingly, the consultation seeks views on:
- The proposed minimum standard to be met
- The timescales for compliance
- The properties that are in scope of the regulations
- The exemptions to be included
- The level of cost cap exemption
- The approach to monitoring and compliance of these regulations
- The Scottish Government is also consulting on the scope of a potential Heat and Energy Efficiency Technical Suitability Assessment (HEETSA) in parallel, to provide additional safeguards for buildings that are more complex to decarbonise and implementing energy efficiency measures as appropriate.
Consultation Response
Submission of responses to the consultation is due by Friday 29 August 2025, so any responses / input is requested by 5.00pm Wednesday 20th August.
The recommended responses can be found in Appendix A below. For additional information, please contact Robert.Seale@eastdunbarton.gov.uk.
Appendix A – Consultation Questions and Proposed Response
Response: Yes
Please provide further information here:
As noted in the consultation, the Private Rented Sector has some of the highest rates of fuel poverty in the country. Since improved insulation and other energy efficiency measures is estimated to reduce emissions by 5% while also improving housing quality, reducing energy costs for tenants and facilitating the transition to clean heating systems, the introduction of these measures would help to alleviate fuel poverty in East Dunbartonshire and across Scotland while also reducing contributions to climate change. As outlined in the consultation paper and supporting documents, band C indicates properties with a ‘good level of energy efficiency’ and would therefore constitute a good initial minimum standard. Accompanying rent controls would need to be explored to ensure costs of energy efficiency measures are not passed on to tenants.
Response: Yes
Please provide further information here:
EPCs serve the dual function of providing basic information about the energy efficiency of a building and providing a metric against which government policies related to home energy, such as fuel poverty and decarbonisation, can be measured. Therefore, the use of reformed EPCs to define the MEES would be a clear way to convey any MEES.
Response: No
Please provide further information here:
It should be earlier than 2033. Recent global and local temperature records underscore the need for urgent action to reduce emissions, particularly in ways which support households that are most exposed to fuel poverty. While a reasonable time period should be allowed for landlords to plan for the cost of the transition and to account for potential supply chain and workforce capacity constraints, the delay in the proposed MEES timescales from the Heat in Buildings Bill from 2028 to 2033 does not reflect the imperative to reduce emissions and address fuel poverty as rapidly as possible. In the case of East Dunbartonshire, a majority of the Council’s housing stock is located in mixed-tenure buildings, and installing insulation measures over a shorter period would involve significant investment from the Council. Sufficient additional resource will therefore need to be provided to Councils to undertake the enforcement duty, and ensure the additional work entailed could be undertaken without disruption to ongoing processes.
Response: Yes
Please provide further information here:
As noted previously, recent global and local temperature records underscore the need for urgent action to reduce emissions, particularly in ways which support households that are most exposed to fuel poverty. Enforcement of the MEES by 2028 does appear to be a reasonable timeframe to allow landlords to plan for the cost of the transition and to account for potential supply chain and workforce capacity constraints, however, earlier dates should be explored where possible. A phased implementation would also allow the Council to assume its enforcement duties and plan for increased demand for resources, once the regulations come into effect in 2028, and sufficient additional resource will need to be provided to Councils to undertake the additional enforcement duty.
Response: Don’t Know
Please provide further information here:
While the draft regulations provide good justification for exempting these properties, complete exemption may create the risk of landlords converting tenancy types to qualify for exemptions and continuing to expose PRS tenants to fuel poverty. It may be worth exploring nuanced exemptions that would reduce the risk of this.
Response: No
Please provide further information here:
The rationale provided for excluding short-term holiday lets, that the occupiers typically do not pay energy bills, fails to account for the greenhouse gas emission reductions that MEES could deliver and how including short-term lets would support Scottish Government and local authority net zero targets. Compliance with the MEES could also benefit landlords through lower long-term operational costs (heating costs) and improved quality of their properties.
Response: Yes
Please provide further information here:
Response: Yes
Please provide further information here:
Response: No
Please provide further information here:
While a cost cap may be appropriate for standard-sized properties where energy efficiency upgrades are prohibitively expensive, it should not apply uniformly to large homes - such as mansions or high-emitting dwellings - to avoid exempting the most carbon-intensive segment of the housing stock from improvement obligations. We recommend that properties exceeding a defined floor area threshold (potentially differentiated by bedroom count) be excluded from the £10,000 cost cap. For properties within scope of the cap, the Scottish Government should monitor implementation costs and consider adjusting the cap over time to reflect inflation, market conditions, and technological developments.
Response: Yes
Please provide further information here:
Since landlords may seek to implement improvements earlier than the enforcement dates, it is reasonable that these costs are captured in their efforts to achieve the minimum standard. Cost caps on EPCs should also be explored to ensure that they do not become prohibitively expensive.
Response: Yes
Please provide further information here:
These are costs which landlords will have to meet so it is reasonable that these costs count towards the cost cap.
Response: Yes
Please provide further information here:
Scottish Government should provide guidance to support landlords, in addition to access to loans to ensure the energy efficiency measures are affordable for landlords.
Response: Yes
Scottish Government should continue to provide the Private Rented Sector Landlord Loan in order to support the MEES.
Please provide further information here:
Response: Yes
Please provide further information here:
This would align with local authorities’ role in related workstreams such as the delivery of Area Based Schemes (ABS) and EPC regulations enforcement. However, there will be additional human and financial resources needed to carry out the enforcement duty. Therefore, adequate additional resource must be provided for local authorities to undertake this additional duty, to ensure this additional work could be undertaken without disruption to ongoing processes. It would also be helpful if Scottish Government could commit to multi-year funding for ABS, as this would allow longer term contractual awards and provide more time on site for delivering outcomes.
Response: Yes
Since the proposed level of financial penalty for acts of non-compliance were developed through multiple consultations and through extensive stakeholder engagement, this seems appropriate, however, the level should be monitored to ensure that it continues to act as an effective deterrent to non-compliance.
Please provide further information here:
Response: Yes
Please provide further information here:
The current maximum fine for non-compliance of £5,000 may not be a sufficient deterrent, particularly within the context of the level of inflation that has occurred since the Act was passed in 2011.
Please provide further views or information here:
Enforcing a MEES would be of particular benefit to tenants who are more vulnerable to financial and health impacts of poor energy efficiency (including from cold and dampness), including those of particular age groups (such as children and elderly residents) and those with disabilities. Reducing Scotland’s greenhouse gas emissions also contributes to inter-generational benefits by reducing Scotland’s contributions to greater climatic hostility, which future generations are set to inherit.