There is plenty of help available to private sector landlords looking to improve the energy efficiency of their rental properties. Read on to find out more, or call Home Energy Scotland on 0808 808 2282 for free, impartial advice, funded by the Scottish Government.
If you are a registered social landlord please visit our page on how we can support social housing providers.
Making your rented properties more efficient could add value, make your properties more attractive to new tenants, lead to lower turnover of tenancies and reduce potential problems like damp. Improving your property’s Energy Performance Certificate (EPC) rating can help you meet minimum energy efficiency standards which are coming into force in April 2020. Plus, your tenants could benefit from lower energy bills, making them warmer at home and reducing the risk of fuel poverty.
Whether you’re looking for a full assessment of your properties, need someone to chat through your EPC or would like advice on funding, Home Energy Scotland can help. This free, impartial advice service is funded by the Scottish Government, with specially trained advisors covering the whole of Scotland.
A private landlord specialist could visit your rental property and assess what energy efficiency improvements you could make. You’ll get a tailored report which outlines:
The specialist will talk you through the report and help you decide what’s right for you. You can also get advice over the phone at a time that suits you – just call 0808 808 2282.
Whether you’re looking to spread the cost of energy efficiency improvements with an interest-free loan, or looking to secure payments for energy generated by a renewables system, Home Energy Scotland can help you work out what funding option is right for you. Have a read about the different options, and call 0808 808 2282 to find out more.
The interest-free Home Energy Scotland Loan is funded by the Scottish Government and available to eligible registered private sector landlords. This can be used for energy efficiency improvements like insulation, glazing and boilers. The loan can also be used for home renewables systems, energy storage systems and connections to local gas grids or an approved district heating scheme powered at least partly by renewables.
Landlords who operate as ‘natural persons’ can apply for funding for up to three properties. Cashback grants are also available for a limited time for energy efficiency improvements.
The HEEPS Equity Loan is a Scottish Government pilot project which provides equity loan funding for energy efficiency improvements and repairs to the fabric of the building. The loan is available to homeowners and landlords with no more than two properties in Perth and Kinross, Stirling, Dundee, Glasgow City, Inverclyde, Renfrewshire, Argyll and Bute or the Western Isles.
Funded by the Scottish Government,the Resource Efficient Scotland SME Loan can help private sector landlords upgrade their properties by offering interest free loan funding of up to £100,000 for a variety of energy efficiency improvements such as insulation, heating or double glazing. If you should require more than the eligible funding amount of £100,000, or have any other queries, please speak to Home Energy Scotland directly, as there is scope to review loan funding on a case by case basis.
Landlords who install or have already installed an eligible renewable heating system could receive quarterly payments over seven years to help cover the costs through the UK Government’s Renewable Heat Incentive.
Following the closure of the Feed-in Tariff to new applicants in March 2019, the UK Government recognised the need to pay small-scale renewable energy generators for the electricity they export to the grid. The Smart Export Guarantee will do this, and comes into force from 1 January 2020. Landlords who install or have already installed a renewable energy generating system, like solar PV panels, could benefit from this incentive.
The Scottish Government is committed to improving the energy efficiency of homes in the private rented sector and on 2 May 2018 announced minimum energy efficiency standards for private rented homes.
The standards form part of the Energy Efficient Scotland programme which aims to make sure homes and buildings are warmer, greener and more efficient. You can read more about the programme in the Energy Efficient Scotland routemap.
It is proposed that the minimum energy efficiency standards for private rented properties in Scotland will be phased in and increase over time. Your properties will need to meet these minimum Energy Performance Certificate (EPC) ratings:
The Scottish Government has consulted on a standard that would require an EPC of at least band C if you’re starting a new tenancy from 1 April 2025. A response has not yet been published.
This page gives information about the draft regulations’ requirements for private rented properties to meet EPC bands E and D. Regulations for meeting EPC band C will be confirmed at a future date.
On 17 June 2019 the Scottish Government published The Energy Efficiency (Private Rented Property) (Scotland) Regulations 2019, detailing the draft regulations and associated guidance. The guidance is aimed at private landlords, local authorities and other stakeholders, and the Scottish Government is consulting on this. Responses are required by 13 September 2019 and the consultation asks for views on the proposed approach to exemptions, advice and support available, lead-in times and penalties. The regulations are expected to be laid in Parliament after the summer recess.
Energy efficiency recommendations
The draft regulations use EPCs to measure minimum energy efficiency standards. Recommendations will be based on an EPC recommendation report which landlords can use to find out what work they can do to improve their property’s energy efficiency to help meet minimum standards.
There are some key exemptions proposed in the draft regulations, which outline specific circumstances when a private landlord would not need to meet minimum energy efficiency standards. These include situations where:
For a full list of exemptions and further information, refer to the draft regulations.
For all exemptions, it’s proposed that:
In these cases, it is proposed that the landlord must register information with the local authority to support this, by way of a valid exemption.
The draft regulations propose that local authorities enforce the minimum standards. This includes recording and monitoring exemptions, and if necessary, serving a penalty notice on landlords that don’t comply with the standards.
The proposed penalties are:
Local authorities can also add a publication penalty to all of the penalties above. This means that the local authority may publish details of the breach and the amount of penalty imposed on the exemptions register.
Landlords can appeal the decision of a penalty notice review – to find out more, read the draft regulations.
If you need to make improvements to your property, now’s the time to start. A private landlord specialist from Home Energy Scotland can talk you through the new standards and help you work out what improvements to prioritise over your whole portfolio. Call 0808 808 2282 to get the ball rolling, or request a call back.