Chamber and committees

The second milestone of the Energy Efficiency Standard for Social Housing to 2032 (EESSH2) requires social landlords to ensure their stock meets, or can be treated as meeting, EPC Band B, or is as energy efficient as practically possible, by the end of December 2032 and within the limits of cost, technology and necessary consent.

The EESSH2 milestone does not change landlords’ responsibility to manage their investment policy to ensure that it is cost-effective, especially where substantial additional investment has a potential impact on rents. The Scottish Government guidance for landlords makes it clear that we do not expect landlords to invest in measures that are unaffordable or where the costs are disproportionate to the benefits to tenants. Landlords have broad discretion to decide if potential energy efficiency measures are too expensive or are not value for money in their stock. We will continue to work in partnership with the sector to find the most effective ways to tackle the shared challenge of the climate emergency together.

Scottish Government modelling suggests that it could cost a total of £3.4 billion to bring 62% of Scottish social housing up to EPC band B using existing technology. Historically, a large part of the expenditure needed to improve homes has come from landlords' own resources or borrowing as part of their continuing investment to improve their homes. The Scottish Government provides guidance to help landlords identify funding sources, including Energy Company Obligation, UK Government Schemes, and funding from the Scottish Government.

Through our Social Housing Net Zero Heat fund, the Scottish Government has already committed to make available £100 million over the next parliament to support existing social landlords across Scotland to install zero emission heating systems and energy efficiency measures across their housing stock. In addition, the Low Carbon Infrastructure Transition Programme and its successor programme will invest £400 million over the next five years in large-scale heat decarbonisation infrastructure. We will continue to work with the sector to assess the impact of funding to date and ensure that our funding effectively supports further acceleration of the decarbonisation of our social housing stock alongside the ongoing investment of social landlords in maintaining the efficiency and quality of their stock.