The Energy Efficiency (Private Rented Property) (Scotland) regulations 2020: EQIA

Screening

Policy Aim

3. The aim of the Regulation and its underlying policy is to improve the energy efficiency of the worst performing private rented sector housing, to help reduce energy consumption and the emission of greenhouse gases. It follows extensive consultation on the issue during 2017 and 2018 and formed part of the Energy Efficient Scotland Route Map launched in May 2018.

4. Energy use in our homes accounts for around a quarter of Scotland's total energy consumption, and this policy will make a contribution to reducing the new carbon emissions targets of 2030 and 2040 to 70% and 90% emissions reductions respectively in line with the requirements set out in the Climate Change (Scotland) Act 2009.

5. The Regulation and its underlying policy also aims to ensure that tenants in the private rented sector have access to good quality energy efficient homes and recognises that landlords must be able to continue to maintain and expand the sector.

6. The new standards will contribute to the Scottish Government's Greener and Healthier Strategic Objectives. It will impact on the following National Outcomes:

• We live in well-designed sustainable places where we are able to access the amenities and services we need.
• We reduce the local and global environmental impact of our consumption and productions.

Who will it affect?

7. Minimum standards for energy efficiency in homes in the private rented sector (PRS) will affect landlords and tenants. The minimum standards should make the least energy efficient homes in the PRS warmer and more comfortable, and are likely to reduce fuel bills and contribute to reducing fuel poverty. Owners will be responsible for making improvements required to meet the minimum standard for energy efficiency.

8. In 2017, 95,000 Scottish households in private rented accommodation (or 28% of PRS households)^[1] were fuel poor , where they would be required to spend more than 10% of their income on fuel to maintain a satisfactory heating regime.

9. Overall, in the general population, 39% of one or two member households with at least one resident aged 65 or above are fuel poor, compared with 12% of families, and 21% of other households. 31% of households where one or more person is long-term sick or disabled (LTSD) are fuel poor compared with 20% of households with no one who is LTSD^[2].

What might prevent the desired outcomes being achieved?

10. Achieving the desired outcome will be dependent on private landlords taking action to ensure compliance with the new standard. Property owners need to understand the requirements of the Regulations and also the support which is available to achieve the standard. In the event that the desired outcome is not achieved, property owners must also understand the implications of that.

11. In June 2019 we published a consultation on the draft Energy Efficiency (Private Rented Property) (Scotland) Regulations 2019 and Associated Guidance to seek views on:

• The awareness of the standards proposed and the means by which they will be introduced in advance of formal parliamentary consideration of the Regulations to follow;
• The nature of the guidance to support the Regulations and ensure that users are confident that sufficient information is available to them to begin the implementation of the standards required;
• The use of exemptions to clarify those properties which may not be covered by the Regulations and how property owners may go about confirming an exemption for their property with the relevant local authority;
• The support available to achieve the desired outcome including financial and advice; and
• The use of penalties in the event of non-compliance with the Regulation and the levels of those penalties based on a scale to a maximum fine of £5000.

12. The responses have been analysed and a summary can be seen in Annex Two of this document.