Thank you for the opportunity to give evidence on the draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations 2020.
Our programme for government included a commitment to introduce minimum standards for the energy efficiency of homes in the private rented sector that are to be let out for new tenancies from 1 April 2020. The regulations fulfil that commitment using provisions of the Energy Act 2011 that have been in force since 1 July 2019. In drafting the regulations, we have also drawn on the responses to a number of public consultations, the most recent of which was held last summer.
The standards that the regulations establish will make an important contribution to the removal of poor energy efficiency in the private rented sector, which is a driver of fuel poverty. With the most recent figures, for 2018, showing that 36 per cent of households in that sector are fuel poor, the importance of taking that action is clear.
The regulations also flag the wider expectation of the energy efficient Scotland programme to introduce standards for energy efficiency across all building stock in Scotland. Further to standards that have been set in the social sector through the energy efficiency standard for social housing—EESSH—they herald another important step for the 20-year energy efficient Scotland programme. The standards that are introduced will be phased in over five years and will use the widely recognised energy performance certificate as the yardstick for energy efficiency.
From 1 October 2020, there will be a prohibition on the letting of new tenancies that fall below EPC band E. That standard must then be met by all tenancies by 31 March 2022. From 1 April 2022, the standard will increase to EPC band D—again for new tenancies first. By 31 March 2025, all private rented properties will be required to meet the EPC band D standard.
The regulations allow for various exemptions to the standard to take into account individual circumstances and the variety of building stock found in the private rented sector. Examples of those include the cost of the works exceeding £5,000 for each standard set; a sitting tenant or third party refusing to allow the required works to take place; and the likelihood that the necessary works would have a negative impact on the fabric or structure of the property.
We will work with stakeholders to finalise non-statutory guidance to support the roll-out of the changes. If the committee recommends approval of the regulations, my officials will publish draft guidance on 1 April, which will be used as a platform for conversations with local authorities and landlords during the spring of 2020.
The regulations introduce minimum standards for energy efficiency in the private rented sector. The approach will help to ensure that private tenants are able to live in homes in which they do not have to trade off paying for heating with spending on other basic needs.
I apologise for my croaky voice.