Response to Scottish Government consultation on PRS MEES regulations

Consumer Scotland is the statutory body for consumers in Scotland. Established by the Consumer Scotland Act 2020, we are accountable to the Scottish Parliament. The Act defines consumers as individuals and small businesses that purchase, use or receive in Scotland, goods or services supplied by a business, profession, not for profit enterprise, or public body.

Our purpose is to improve outcomes for current and future consumers, and our strategic objectives are: 

• to enhance understanding and awareness of consumer issues by strengthening the evidence base
• to serve the needs and aspirations of current and future consumers by inspiring and influencing the public, private and third sectors
• to enable the active participation of consumers in a fairer economy by improving access to information and support

Consumer Scotland uses data, research and analysis to inform our work on the key issues facing consumers in Scotland. In conjunction with that evidence base we seek a consumer perspective through the application of the consumer principles of access, choice, safety, information, fairness, representation, sustainability and redress.

The Consumer Principles are a set of principles developed by consumer organisations in the UK and overseas.

Consumer Scotland uses the Consumer Principles as a framework through which to analyse the evidence on markets and related issues from a consumer perspective.

The Consumer Principles are:

• Access: Can people get the goods or services they need or want?
• Choice: Is there any?
• Safety: Are the goods or services dangerous to health or welfare?
• Information: Is it available, accurate and useful?
• Fairness: Are some or all consumers unfairly discriminated against?
• Representation: Do consumers have a say in how goods or services are provided?
• Redress: If things go wrong, is there a system for making things right?
• Sustainability: Are consumers enabled to make sustainable choices?

We have utilised these principles to inform our response.

The focus of our response is the interest of households in Scotland as consumers of private rented sector tenancies, i.e. tenants.

Consumer Scotland is generally supportive of the proposals outlined in the consultation. The proposals can help to reduce tenant’s energy bills in a tenure in which fuel poverty rates are relatively high. The risk is that this potential benefit for consumers is offset by a combination of higher rental costs or reduced supply of properties to rent. For these reasons it is important that landlords are appropriately supported to meet the proposed standards (including through the provision of appropriate advice and information), and that appropriate mitigations and exemptions are in place to ensure the PRS regulations do not have adverse impacts on consumers, i.e. tenants.

We have not responded to all of the questions asked but have responded where we can add value from our experience in this and other markets and where we identify that proposals will have a direct impact on Scottish consumers. We would be pleased to discuss the content of this response in more detail.

General

Question 1. Do you agree that the PRS MEES should be EPC HRR band C?

Consumer Scotland is broadly supportive of the introduction of a Minimum Energy Efficiency Standard (MEES) for properties within the Private Rented Sector (PRS), recognising its potential to reduce energy costs and enable households to maintain a comfortable indoor temperature. In 2023, 56% of Scottish homes achieved an Energy Performance Certificate (EPC) rating of Band C or above, an improvement from 52% in 2022.

However, the PRS continues to lag, with 48% of properties rated EPC Band D or lower. Notably, 14% of PRS properties fall within Bands E, F, or G—significantly higher than the social rented sector (5%) and the owner-occupied sector (11%). This disparity is closely linked to elevated levels of fuel poverty within the PRS, where 44% of households are affected[1].

The proposed regulatory changes present a substantial opportunity to enhance the thermal performance of Scotland’s private-rented housing stock, thereby addressing the social and economic consequences of high energy costs and poor living conditions for tenants. However, these benefits must be weighed against the potential risks and unintended consequences – these may include the risks of higher rental costs or reduced supply of properties for rent. It is essential that these risks are rigorously assessed and clearly understood prior to the introduction of any legislative measures.

Question 2. Do you agree that only new reformed EPCs should be used as a basis for the proposed MEES?

Consumer Scotland is broadly supportive of utilising the reformed Energy Performance Certificate (EPC) as the basis for the proposed Minimum Energy Efficiency Standard for Scottish households.

However, with the parallel consultation on the Heat and Energy Efficiency Technical Suitability Assessment (HEETSA) currently in train, it will be imperative to sign post consumers on which assessment will be required for their specific property. In general, having fewer assessments to complete will make it simpler for consumers to comply with regulations and ease the consumer journey.     

Question 3. Do you agree that the backstop date for all PRS homes to comply with MEES should be 2033?

Consumer Scotland supports the introduction PRS MEES as a key driver to accelerate improvement in energy efficiency across rented homes in Scotland. Consumer Scotland believes that a backstop date of 2033, five years after the regulations are due to come into force in 2028, falls in line with Scotland’s science-based Net Zero target and provides the sector with certainty for long term, planning and investment.

However, significant challenges remain in the climate literacy space as some tenants and landlords are unaware of the link between energy inefficiencies and higher energy bills. The Scottish Government should ensure that they provide clear guidance and information on the benefits of increased energy efficiencies can bring, and how these will help Scotland reach Net Zero and tackle fuel poverty.

The PRS MEES can deliver warmer, healthier and more affordable homes for tenants and make a significant contribution to Scotland’s Climate Change targets if it is delivered alongside a targeted awareness campaign to increase understanding, encourage action and provide financial support to make upgrades affordable. It is imperative that landlords know what is expected of them in order to comply with regulations.

Question 4. Do you agree that the MEES should apply to properties being let to new tenants from 2028?

The introduction of the PRS Minimum Energy Efficiency Standards (MEES) represents a significant step forward in engaging private landlords and tenants in efforts to improve the energy efficiency of their homes. Enhancing the thermal performance of housing will be essential to addressing fuel poverty for tenants in Scotland, and we broadly support the establishment of a standard aimed at reducing emissions from one of the least energy-efficient sectors in the country. Consumer Scotland welcomes the implementation of MEES from 2028, with a backstop date of 2033, provided that appropriate financial support and clear guidance are made available ahead of the regulatory changes.

Exemptions

Question 5. Do you agree that, regardless of changes to the repairing standard, that crofters, small landholders and agricultural holdings should be excluded from PRS MEES?

As the purpose of the legislation is to improve energy efficiency of accommodation in the private rented sector as a part of our goal for healthier and more affordable homes for tenants and make a significant contribution to Scotland’s Climate Change Targets it will be essential to engage with rural energy consumers to encourage energy efficiency measures to be improved regardless of their requirement under the regulations.

We understand that small landholders and agricultural holdings require an alternative approach to energy efficiency upgrades. However, we agree that as technology develops it may allow measures to be installed that are not currently suitable for these properties and this exemption should be revisited periodically to ensure properties are meeting their full potential.

Consumer Scotland welcomes further clarification on the exclusion of small landholders and agricultural holdings as part of these regulations. It is important to ensure that landlords will have access to government financial support for properties that are not currently required to make energy efficiency upgrades under the proposed regulations but are doing so on a voluntary basis.

Question 6. Do you agree that the regulations should exclude short-term holiday lets from the PRS MEES?

Consumer Scotland understands that the exclusion of short-term holiday lets from PRS MEES is due to the payment structure for these rental properties. As tenants do not typically pay for the energy used while stay in a short-term holiday let it is inferred that the benefit of upgrading energy efficiency measures will only benefit the owner.

However, we would like to highlight that the increased cost in running a holiday property with inefficient heating will ultimately trickle down and any cost will be reflected in the cost to the consumers.

However, Consumer Scotland is currently unable to take a view on the exclusion of short term holiday lets from the PRS MEES until more data can be provided in relation to the following points:

• How the Scottish Government intends to define Short Term Holiday Lets in relation to this regulation
• Whether the proposed figure of 300,000 Private Rented Sector properties includes those currently categorised as Short Term Holiday Lets. Data from Office of National Statistics (ONS), released in May 2024, provides estimates of the number of short term let hosts and listings on three major platforms (Airbnb, Booking.com and Expedia Group). The latest available data estimates there were 64,000 listings across the three platforms in Scotland as of December 2023[2].
• If the exclusion of Short Term Holiday Lets from this regulation will mean that these properties would not qualify for financial government support if they were to voluntarily upgrade their energy efficiency measures.

Consumer Scotland would welcome further engagement on this area once clarification on the above points can be provided.

Question 7. Do you agree with the proposed exemptions covering consent, the fabric requirements of the home and temporary exemptions?

Consumer Scotland supports the exemption for buildings which would be negatively impacted by the requirement to upgrade energy efficiency measures due to fabric requirements. However, technological advancements should continue to be reviewed to ensure that buildings can upgrade when appropriate.

Additionally, we welcome that tenant consent in a requirement under the proposed regulations and that landlords should not be penalised for being unable to comply until tenant consent has been granted.

Heat and Energy Efficiency Technical Suitability Assessment

Question 8. Do you agree that HEETSA should be available as an option to evidence potential negative impacts on the fabric of a property and to support an exemption?

Consumer Scotland is supportive of the addition of a more tailored assessment that supports landlords to make energy efficiency improvements if they are presented in a manner that is easily digestible to consumers and doesn’t require advanced knowledge of energy efficiency standards to enable fabric improvements or low carbon technology installation.

We are broadly supportive of the utilisation of HEETSA for evidence on the fabric of a property. If an assessment is already in place which collects the relevant information to evidence an exemption, it should be utilised before implementing any further assessments for households to complete. However, Consumer Scotland has not taken a position on the specific technical methodologies, skill requirements or assessors qualifications outlined in the proposed Heat and Energy Efficiency Technical Suitability Assessment consultation.

Question 9. Do you agree that the cost cap level should be £10,000?

Consumer Scotland is unable to comment on the impact of the £10,000 cost cap based on this information provided within the consultation. Although your analysis has shown that the average cost of energy efficiency improvements that may be required for domestic PRS properties, based on current EPC metrics, could be around £1,400 - £2,700. It does not confirm the standard deviation related to these averages or how those averages are impacted by region.

We welcome further analysis on the implications of the £10,000 cost cap and we are keen to engage further with the development of this exemption.

Question 10. Do you agree with the proposed 12 month lead in time period for works to contribute to the total cost cap?

Consumer Scotland is broadly supportive of the proposed 12-month lead-in period. It will be important that regulations do not unfairly penalise landlords who have proactively improved their properties energy efficiency performance in advance of these regulations coming into effect. Therefore, we believe these improvements measures should contribute to the total cost cap.

Question 11. Do you agree that that all actual costs, and the cost of an EPC, should count towards the cost cap?

We are supportive of all actual costs, and the cost of an EPC and any additional assessment required should count towards the cost cap.

Question 12. Do you agree that landlords should receive Scottish Government support to make the required changes?

Ensuring that adequate support is available for landlords to make energy efficiency improvements will be paramount to the successful implementation of this regulation. Consumer Scotland recommends clear guidance and information on the benefits that increased energy efficiencies can bring, and how these will help Scotland reach Net Zero and tackle fuel poverty.

The PRS MEES can deliver warmer, healthier and more affordable homes for tenants and make a significant contribution to Scotland’s climate change targets. However, this will need to be delivered alongside a targeted awareness campaign to increase understanding and encourage action with appropriate financial support to make upgrades affordable. Consumer Scotland’s recent investigation into the market for energy efficiency and low carbon technologies expands these points further[3]. 

Question 13. Do you agree that this should be in the form of a loan?

Consumer Scotland would not look to comment on the mechanism of the support provided to landlords. However, we would emphasise the importance of financial support and guidance to allow landlords to decarbonise their buildings.

Question 14. Do you agree that local authorities should be responsible for monitoring and compliance of these regulations? If no, please provide details of an alternative with your reason(s) as to how this would support the delivery of these regulations.

Consumer Scotland supports the proposal that local authorities be responsible for monitoring and compliance of the regulations due to their experience and knowledge in the enforcement of EPC regulations for these areas of Scotland. However, this is very likely to require additional funding and support for those undertaking this new responsibility.

As local authorities have responsibility for Landlord Registration, it would be beneficial to explore the possibility to building this into the existing process to reduce the likelihood of duplication.

Question 15. Do you agree with the proposed level of financial penalties to support compliance with the regulations? If no, please provide detail on suggested amendments that should be made, outlining how the changes would increase the impact of penalties to achieving compliance with the Regulations.

Question 16. Do you agree that the Scottish Government should seek to amend the Energy Act 2011 to increase in maximum financial penalties that could be imposed up to £30,000 in future, should this be deemed necessary?

Consumer Scotland recognises the need to have appropriate measures in place to enforce compliance with the proposed Heat in Buildings Standard. However, we would encourage the Scottish Government to further consider how it can incentivise compliance in the first instance.

Landlords should also be encouraged to view the energy efficiency component of the proposed Standard as a floor, not a ceiling. We want to ensure that any system is fair, proportionate, and compassionate in order to fully support landlords that are struggling to achieve the proposed Standard.

If the principal objective of enforcement action is to support all buildings to meet the relevant requirements of the proposed Heat in Building Standard (or, where relevant, to be deemed as having met them, through the granting of an appropriate abeyance or exemption), we think there is merit in further thought being given as to how the imposition of penalties can help to deliver this outcome.

Question 17. In what way could these regulations have a specific or different impact, positive or negative, on a particular group of people? This could be based on protected characteristics, such as age or disability, or geography, such as island communities.

We understand that a series of impact assessment have be undertaken to evaluate the potential effects of these proposed regulations on Scottish consumers. 

In addition to the information gathered from the impact assessments. We encourage the use of Consumer Scotland’s recently published framework[4] to help policymakers take account of the consumer perspective when developing policies and interventions to address climate change. This framework sets out the key issues for consumers in the transition, as follows:

• Cost: The costs of responding to the climate emergency are distributed fairly
• Convenience: Sustainable products and services are designed in ways that fit easily into consumers’ lives
• Clarity: Consumers understand what they need to do and why
• Confidence: Consumers trust sustainable products and services, have strong protection, and have access to redress

This ‘four Cs’ framework underpins our response to the consultation.

Next Steps

We would be happy to discuss the content of our submission to this consultation in more detail. Looking forward, we would be keen to work closely with the Scottish Government as its thinking on minimum energy efficiency for the private rented sector develops.

Rebecca Smyth

August 2025