To ask the Scottish Government, in relation to the proposals included in the forthcoming Heat in Buildings Bill, whether it has received any representations regarding whether (a) they could adversely impact upon the mortgage market, (b) mortgage valuation assessments could have to be changed for Scotland as a result of the proposals requiring homebuyers to commit to upgrading to clean energy systems, (c) they could lead to higher interest rates for mortgage holders in Scotland compared with the rest of the UK, and (d) they could create a reported "material shock to the Scottish housing market that could have a detrimental impact on consumers and the wider economy".
The Scottish Government recently consulted on proposals for a Heat in Buildings Bill, this consultation closed on 8 March 2024. We are currently analysing all responses received. This analysis will inform the further design of policy provisions together with any feedback gathered during wider consultation engagement events and workshops. All responses will be published in full, in accordance with Scottish Government guidance.
Ahead of the launch of the consultation and in preparing the proposals, I met with several retail banks to discuss their role in supporting consumers in meeting the costs of the proposed standards. In addition, I attended a Scottish Financial Enterprise hosted roundtable to discuss lenders' role and the potential impacts that the proposals may have on the housing market. As we finalise our proposals we will take this feedback into account.
In addition, the Scottish Government has commissioned research through ClimateXChange to investigate the potential impact of the proposed Heat in Buildings Bill on the Scottish Housing Market. The scope of this project includes an investigation into the impact on the mortgage market. This research is currently being carried out, and findings will be published later this year.
