Scotland’s private rented sector is bracing for an exodus of landlords and longer waits for homeless housing placements as ministers push ahead with tough new energy efficiency rules.
Under proposals out for consultation, all new tenancies from April 2028 would need to meet an EPC band C rating, with every rental property in the country expected to comply by 2033.
But the Scottish Association of Landlords (SAL) says the plans are “dangerous” and risk making the housing crisis worse, not better.
It claims the policy would slash emissions by just 0.04% while sending costs soaring and driving investors away.
Properties will likely need expensive retrofits, including insulation and heating upgrades and landlords say the government has given them no time to prepare.
The key technical reports needed to work out what changes are required won’t be published until autumn 2026, leaving just 18 months to plan and fund works.
SAL Chief Executive John Blackwood said: “With the lack of technical reports to assess options and the clock ticking down to the deadline, landlords will have no time to arrange works to be done. Scotland’s landlords are urging ministers to rethink these dangerous proposals and to work with us to encourage investment and confidence in our sector.”
Landlords fear that extended void periods for works will push up homelessness, with tenants stuck longer in temporary or emergency housing.
They say the EPC targets, combined with rising regulation and tax, will push many to sell up altogether.
Funding support is available, but critics say it won’t go far enough.
Landlords can access low or zero-interest loans of up to £38,000 per property or £100,000 across a portfolio of up to five homes.
Grants are also on offer through ECO4 for properties with a current EPC of E, F or G, particularly if tenants are on benefits.
But SAL argues the bureaucracy is off-putting and the system lacks flexibility. The association is now calling for a complete rethink ahead of the 29 August consultation deadline.
