The Building (Procedure) (Scotland) Amendment Regulations 2024: final business and regulatory impact assessment

The Building (Procedure) (Scotland) Amendment Regulations 2024: Determining the principles for a Scottish equivalent to the Passivhaus standard

1 Title of proposal

The Building (Procedure) (Scotland) Amendment Regulations 2024 – Determining the principles for a Scottish equivalent to the Passivhaus standard

2 Purpose and intended effect

2.1 Background

The building standards system in Scotland is established by The Building (Scotland) Act 2003 (The 2003 Act). The purpose of the building standards system is to protect the public interest. The system regulates building work on new and existing buildings to provide buildings that meet reasonable standards which:

• Ensure the health, safety, welfare and convenience of persons in or about buildings and of other who may be affected by buildings or matters connected with buildings,
• Further the conservation of fuel and power, and
• Further the achievement of sustainable development.

The building standards system is pre-emptive and is designed to check that proposals meet building regulations. The main principles of the system are that a building warrant must be obtained from a verifier before work commences on site and a completion certificate is accepted by a verifier if, after undertaking reasonable inquiry, they are satisfied the building work meets the building regulations, prior to the building being occupied. The thirty-two local authorities in Scotland are appointed by Scottish Ministers as verifiers to administer the building standards system in their geographical areas. Responsibility for compliance with the building regulations lies with the “relevant person” as the party instructing building work and, ultimately, with the building owner.

Following the introduction of the Building (Scotland) Act 2003 and our current system of building standards in May 2005, energy standards within section 6 of the Building Standards Technical Handbooks were reviewed and improved in 2007, 2010, 2015 and most recently in February 2023.

Each review introduced further staged improvement to energy standards and related changes on topics such as ventilation. It is assessed that emissions arising from energy use in new buildings constructed to the February 2023 standards are, on aggregate, around 32% lower for new homes and 20% lower for new non-domestic buildings, compared to the previous 2015 standards and more than 80% lower than standards in force in 1990, the baseline reporting year for CO₂ emissions.

A further, specific change was introduced this year by the New Build Heat Standard, which applies to new buildings and certain conversions where a building warrant application was submitted from 1 April 2024. The new standard (6.11) requires, with few exceptions, that new buildings must no longer use ‘direct emission heating systems’ for space or water heating or cooling.

2.2 Objective

The purpose of this review is to consider changes to the requirements and processes set within The Building (Scotland) Regulations 2004 and The Building (Procedure) (Scotland) Regulations 2004. Changes under consideration are to introduce updates within Scottish building regulations and supporting guidance to define a Scottish equivalent to the Passivhaus standard. The intent is that these changes will deliver two outcomes:

• Improvements to the setting of energy and environmental (ventilation) performance and standards for new buildings, leading to lower energy demand (and reduced running costs) and a healthy indoor environment; and
• Improvements to the design and construction process to give greater assurance that compliance, and therefore the performance sought, is delivered in practice.

This Impact Assessment considers the first of two stages in the review which will consider the technical, commercial and wider policy implications of improvements to energy and environmental standards in the context of broader action by the Scottish Government on climate change, to further our ambition of becoming a net-zero society by 2045.

This initial stage and the related consultation do not set out the details of proposed new standards or performance targets and supporting assurance processes. That will be set out in a further stage and public consultation in summer 2025.

This initial stage sought views on the form and approach that a Scottish equivalent to the Passivhaus standard, implemented through building regulations, should adopt. It sought information to enable confirmation of the extent of amendment of regulations, proposed for December 2024.

2.3 Rationale for Government intervention

The Scottish Government is committed to reducing greenhouse gas emissions. The Climate Change (Scotland) Act 2009^[1] introduced the most ambitious climate change legislation anywhere in the world. The Scottish Government has committed to stop contributing to climate change within a generation. The Climate Change (Emission Reduction Targets) (Scotland) Act 2019 includes a legally binding target of net zero greenhouse gas emissions by 2045.

Scotland’s commitment to reach net-zero greenhouse gas emissions by 2045 means a fundamental transformation of our economy. The document, ‘A National Mission for a fairer, greener Scotland’ was published on 23 March 2021. The Report provides practical advice to Scottish Government Ministers, through 24 recommendations, on how to deliver on a Just Transition to a net zero future. This includes recognition of the benefits that national regulation can play in driving change.

With the introduction of the New Build Heat Standard (NBHS) in April 2024, and further revision published for January 2025, there has been a shift in focus in the way we heat our new homes and buildings. Apart from cooking, new buildings can be seen as contributing ‘zero direct emissions’ or using low emissions heating which positively contributed to achieving our 2045 targets. A step reduction in delivered energy use will aid the reduction of any associated upstream emissions as a result of production of the energy used in the operation of new buildings.

In December 2022 the Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights confirmed that, in response to Alex Rowley MSP’s Proposed Domestic Building Environmental Standards (Scotland) Bill, the Scottish Government would make subordinate legislation by 14 December 2024 to give effect to Mr Rowley’s final proposal “to introduce new minimum environmental design standards for all new build housing to meet a Scottish equivalent to the Passivhaus standard, in order to improve energy efficiency and thermal performance”.

2.4 The risks to be addressed

The actions proposed within this review are the reduction in delivered energy demand and improvement in the indoor environment whilst introducing a robust compliance regime.

The reduction in energy use for new development will contribute positively to the development of the Scottish Government’s Climate Change, Energy Strategy and Fuel Poverty Programmes.

In delivering improvement, there are subsidiary risks that must also be considered. Minimum standards applicable to new buildings should still:

• be achievable across the whole of Scotland
• be proposed with an understanding of the potential cost of improvement to the delivery and operation of buildings;
• remain technically feasible;
• offer flexibility in the ways which standards can be achieved, to allow best value;
• ensure proposals do not conflict with or duplicate other regulatory requirements; and
• be implemented with consideration of wider societal issues related to the occupation and use of buildings.

3 Consultation

3.1 Development phase

Before making or amending building regulations, Scottish Ministers are required, under Section 1(2) of the Building (Scotland) Act 2003^[2], to consult “such persons as appear to them to be representative of the interests concerned”.

Prior to public consultation on the proposed changes to regulations, this duty is discharged through the development of proposals by a Departmental Working Group^[3], comprising of officials and representatives of industry, together with communication with other parts of Government and bodies representing organisations of the construction industry. This is intended to provide assurance that proposals are proofed against the considerations previously identified above.

In 2023, Scottish Ministers approved a Departmental Working Group to consider amendments to building regulations in respect of taking on the effect of Mr Rowley’s final Bill proposal. Along with government officials, the Working Group included members of local authority verifiers, designers, building services engineers, energy modellers, academia and private sector organisations representing the commercial and domestic sector.

Over four meetings between June 2023 and July 2024 alongside seven technical industry workshops, this group helped shape the development of proposals for consultation.

Themed industry workshops were held through Autumn/Winter 2023 to gather feedback on a number of topics related to very low energy building design and construction. Working Group members and wider industry stakeholders have been actively engaged in the review process to date. However, a position of consensus on what a Scottish equivalent to the Passivhaus standard should look like has so far not been reached.

Further meetings of the Working Group during the consultation period were undertaken to develop a consensus paper which would, alongside consultation responses, inform the second stage of the review.

Information on the review process to date, including membership of the Working Group and meeting notes are published at: Energy Standards Review – Scottish Passivhaus Equivalent: Working Group - gov.scot (www.gov.scot). Links to the consultation analysis report, Scottish Government Response and the Working Group consensus paper will also be provided at the end of 2024.

3.2 Within Government

Building Standards Division has a network of stakeholder organisations with an interest in building regulations. Government organisations and departments with a policy interest in proposals are contacted in respect of these proposals and consultation documents are made available to these bodies.

This includes direct contact and discussion with the following during the development phase. This ensures that the implications of options on other policy areas is clearly understood and that proposals are developed with an awareness of similar or related work elsewhere within the UK.

• Scottish Government Directorate General Communities
• Scottish Government Directorate General Net Zero
• Building Regulations, Wales
• Building Regulations, Northern Ireland
• Building Regulations, England (Health and Safety Executive)
• Building Regulations, England (Department for Energy Security and Net Zero)
• Building Regulations, England (Ministry of Housing, Communities and Local Government)

3.3 Business consultation

While changes to building regulations affect any party who chooses to build a new building or carry out new building work to an existing building, such changes have the most significant impact on parties involved in the delivery of such building work for example; designers, developers, contactors; and manufacturers of building products.

Businesses have been represented on the Departmental Working Group through the development phase of this consultation and have also been represented on a range of themed industry workshops through Autumn/Winter 2023

Further views of businesses were sought as part of the consultation, to enable a full discussion on the technical and financial implications of the proposed changes on Scottish firms. This will be initially on the principles for regulation proposed within the 2024 consultation. Engagement with businesses will continue through 2025 as the second consultation on detailed proposals is launched.

3.4 Public consultation

This Final Impact Assessment is updated from the partial assessment issued as part of the public consultation. The consultation sought general comment on principles and processes to allow changes to regulations to be confirmed and laid in December 2024 as enabling actions for final changes to published documents and processes which will be subject to further consultation in summer 2025. Annex A of the consultation summarised proposals for potential regulatory change to support the outcome sought.

Notification of the consultation is issued to a list of individuals and organisations previously identified as having an interest in building standards.

The full consultation package was published on the Scottish Government website for a period to twelve weeks, from 31 July to 23 October 2024. A total of 354 responses to the consultation were received. The consultation, responses and the consultation analysis report is published online at https://consult.gov.scot/local-government-and-communities/building-regulations-passivhaus-equivalent/.

4 Options

4.1 Sectors and groups affected

These proposals affect all persons who develop and deliver new buildings or new construction work and, ultimately, those who will own or occupy such buildings.

Sectors and groups directly affected can be categorised as:

• Persons procuring or occupying new buildings or building work, who may need to bear any additional costs associated with delivering buildings which have improved energy performance. Whilst this relates to a specific activity, the group who may be affected at one time or another can be considered to be the majority of the population.
• Developers who, in addition to the above, would have to review existing building specification, construction detailing and, potentially, methods of working. This might include, where relevant, seeking amended Scottish type approvals for standard constructions, possibly sooner than otherwise intended.
• Building materials and component manufacturers, who may need to review and introduce changes to products and literature to address revised performance standards.
• Those involved with the energy aspects of building design and construction, who would have to familiarise themselves with any revised standards and methodologies.
• Building services contractors, who may need to invest to increase the capacity for commissioning and testing of buildings and engineering services.
• Local authority verifiers, who may need to arrange training of staff on changes to energy standards and guidance, to ensure these can be verified at design submission and during construction where necessary.

4.2 Option Development

Annex A of the stage one consultation set out an analysis of potential areas of regulatory change which would support the intended revised standard and sought views both on those potential changes and on the general principle that underpins delivery of ‘a Scottish equivalent to the Passivhaus standard’.

Two options (outcomes) could be derived from the stage 1 consultation.

4.2.1. Option 1- do nothing.

This is only a viable option if it is proven that the effect of the final proposal to Parliament can be achieved without regulatory change. Analysis of the current extent of regulatory provisions identified a number of potential candidates amongst current regulations and mandatory standards for regulatory change. It also noted the potential that a new regulation or standard may be needed to deliver this outcome.

Further analysis during and after the stage 1 consultation identified where new regulatory provisions would be needed to achieve the outcome sought. Accordingly this is no longer a viable option.

4.2.2. Option 2 - make regulatory change.

The review would identify and implement necessary changes to regulations to give effect to the final proposal by Alex Rowley MSP for a proposed Domestic Building Environmental Standards (Scotland) Bill.

The stage 1 consultation sought consultation responses to enable confirmation of any changes needed to current building regulations to enable the actions that would define the improved targets and processes of a revised standard. There are therefore limits to the available evidence at present.

The purpose was to identify where changes required to be made to current building regulations to enable actions that are identified as necessary to achieve the outcomes described in section 2.2

Reporting below confirms the intent to implement Option 2.

The nature of the regulatory changes can now be confirmed. However, a full understanding of the costs and benefits of final changes will only be derived once the detail of changes to standards and performance targets and processes are set out next year. A full assessment of the cost and benefit arising from options will be presented in support of the second stage consultation in summer 2025.

Indicative costs of achieving an elemental standard approaching that associated with Passivhaus were include in the final assessment of options for the 2021 consultation on energy standards. This indicated a potential further uplift of capital cost to development, over and above the implemented options of 2-3% for new homes (resulting in a net increase in overall cost for a ten year policy period of approximately £ 300M) and up to 2% for new non-domestic buildings (resulting in a net increase in overall cost for a ten year policy period of approximately £ 80M).

This now requires to be re-evaluated in the context of current costs and the New Build Heat Standards and the omission of mains gas heating. This work is currently being undertaken and will enable an updated assessment of approximate impact to be provided as part of work taken forward from January 2025.

An assessment of likely costs associated with initial regulatory changes was initially proposed to be presented on conclusion of the stage one consultation, based upon an update of components of the previous 2021 consultation and the outcome of new commissioned research currently underway. Research remains in progress and, due to the limited nature of the regulatory changes now identified, only a general statement (below) is needed on the financial impact of changes at this point in the review.

The regulatory changes proposed introduce a formal requirement for those delivering building work which is the subject of a building warrant to provide information to demonstrate how compliance is achieved for a range of mandatory standards which address energy and environmental performance. The regulatory amendments do not change the standards which must be achieved but will, through a supporting guidance document define the minimum levels of action and reporting expected in providing such information. Formalisation of reporting is expected to have an impact on the actions of both developers and verifiers and this impact will be codified and costed as part of an updated Business and Regulatory Impact Assessment prepared as part of the stage two consultation in summer 2025.

It is again stressed that the full detail of proposed changes will determine the overall impact of the delivery of the new standard and its component parts – improvement to standards and targets and improvement towards a stronger, evidence-led approach to demonstrating compliance with energy and environmental standards. All components of the amended standards and compliance regime will be identified in support of the second stage consultation in summer 2025.

5 Regulatory and EU Alignment Impacts

5.1 Intra-UK Trade and International Trade

An assessment was made on the impact of these proposals to international trade and also in respect of trade within the UK. The measures proposed relate to the function or performance of construction work and how that is reported. They do not prescribe measures which:

• have the potential to affect imports or exports of a specific good or service, or groups of goods or services;
• affect trade flows with one or more countries; or
• include different requirements for domestic and foreign businesses.

At present, the proposals do not define technical regulations or conformity assessment procedures for which a relevant standard does not exist. Accordingly, proposals do not require a submission of a Technical Barrier to Trade notification to the World Trade Organisation. This assessment will be further reviewed as part of an updated Business and Regulatory Impact Assessment prepared as part of the stage two consultation in summer 2025.

5.2 EU Alignment

The subject of this review has material relevance to impact on the Scottish government’s policy to maintain alignment with the EU.

Energy standards set though building regulations formed part of the transposition of Directive 2010/31/EU on the energy performance of buildings, with changes to our regulations as recent as June 2023 demonstrating awareness of issues relevant to the transposition of that Directive.

Recent amendment of this Directive as (EU)2024/1275, such as the phasing out of fossil fuels from new buildings, have already been put in place in support of our domestic heat decarbonisation agenda, through the 2024 New Build Heat Standard.

The ongoing review, examining changes to performance targets and processes, will assess the continued opportunities for, and risk to, alignment. The topic of this review supports the more effective delivery of very low energy buildings and proposals in development for the second stage of this review will reference such opportunities and options in more detail.

6 Scottish firms impact test

The Scottish firms’ impact test regards all firms with fewer than 50 full-time employees as being small businesses. The majority of small firms have fewer than 10 employees and guidelines state that a concerted effort should be made to consult them over policy proposals.

Businesses have been represented on the Departmental Working Group through the development phase of this consultation and have also been represented on a range of themed industry workshops through Autumn/Winter 2023. Changes at this stage, arising from the proposed changes to regulation are not significant in respect of impact on firms as they have yet to be placed in the context of amended performance targets or processes.

Due to the staged format of the review and the presentation of detail on the nature of proposed technical and procedural change, it is intended that that the most significant engagement with business will occur in the period leading up to and during the second stage consultation in summer 2025.

7 Competition assessment

Having reviewed the five competition filter questions provided with the Competition and Markets Authority Fair Trading document “Competition assessment guidelines, Part 2: guidelines”, it is considered that proposals set out in this consultation will not result in a significant impact on competition within the market place.

In support of the above, it is noted that:

• The manner in which standards for new buildings are set allows for flexibility in the solutions adopted which reduces the emphasis on performance of individual products or solutions;
• New regulations and improved standards are a recognised driver to product improvement and to innovation and as such, and element of challenge to all parties involved in delivering products and services is expected.

No significant areas where issues of competition, restriction or imbalance will arise have been identified as part of this first stage of the review. This situation will be reassessed in the context of the second stage consultation in summer 2025.

8 Consumer assessment

The Scottish Government definition of a consumer is “anyone who buys good or digital content or uses goods or services either in the private or public sector, now or in the future.”

While changed to building regulations affect any party who chooses to build a new building or carry out new building work to an existing building, we must recognise that consumers will eventually use or live in these buildings.

New regulations and improved standards are a recognised driver to product improvement and to innovation and as such there is likely to be an associated cost uplift due to the changes that are brought about by the improvement in building standards. Any potential cost uplifts will be reported in an updated BRIA as part of the second consultation in Summer 2025.

At this stage, the proposed changes do not create any adverse impact on consumers beyond what may reasonably be expected by a regulatory regime of this type (application of minimum standards to a process).

9 Test run of business forms

There are no new business forms proposed within the confirmed regulatory changes. However, these changes do relate to the manner in which information will be presented to verifiers as part of the design and construction process. The need for such forms will be reassessed during the second stage of the review based upon the detail off final proposals.

10 Digital impact test

The proposals put forward relate to the provision of physical systems within newly created buildings and focus on how information on specific issues will be reported. These requirements are set through national regulation and implemented as part of construction work. As such, there are no direct implications or unintended consequences identified in relation to the impacts of digital technology and technological services.

Of indirect relevance, it can be noted that digital technology is implemented widely within the construction and housing sectors in the management of information and to improve productivity and outcomes. Correspondingly, the Scottish Government has an improvement agenda that include the increased use of digital solutions in the management of the building standards process.

For the building standards system, this includes an online portal for the submission of applications and approval of building warrants required for the construction of new dwellings. Ongoing development of this digital strategy is a workstream being continued under the Building Standards Futures Board^[4].

11 Legal aid impact test

Proposals within this consultation that would be the subject of regulation follow established process and premise. It is not anticipated that there will be any greater demands placed on the legal system by the proposal. Accordingly, it is not considered that there will be any effect on individuals’ right of access to justice through availability of legal aid or on possible expenditure from the legal aid fund.

This will be reviewed further for the second stage consultation and this aspect of proposals will be verified in discussions with officials from the Scottish Government Access to Justice Team prior to the production of a final impact assessment.

12 Enforcement, sanctions and monitoring

12.1 Background

The changes confirmed in this consultation identify where amendment is needed to the Building (Scotland) Regulations 2004 and the Building (Scotland) (Procedures) Regulations 2004. This confirms regulatory changes made to the latter. Following a second consultation in Summer 2025, review will extend to the modification of the supporting guidance to the regulations and standards (issued by the Building Standards Division of the Scottish Government) that support the Regulations. This would include the Technical Handbooks which list the mandatory functional standards set out under Regulation 9 of the Regulations and give guidance on ways of complying with these mandatory functional standards. It will also extend to the approved calculation methodologies required by regulations and cited in published guidance.

All matters relating to enforcement, sanctions and monitoring will be carried out under the existing processes, which form the building standards system in Scotland, as set out under the Building (Scotland) Act 2003. Parties responsible for operation of this system are currently the 32 Scottish local authorities, appointed as verifiers under the Act, and the Building Standards Division, on behalf of Scottish Ministers.

12.2 Enforcement and sanctions

The regulatory changes proposed apply where work subject to the Building (Scotland) Regulations 2004 requires that a building warrant must be obtained before work commences and a completion certificate accepted once works are finished. Whether or not such work requires a building warrant is set out under Regulation 5 of the Regulations, the person responsible for the building or work, the ‘relevant person’ as defined in Section 17 of the Building (Scotland) Act 2003, is required to ensure compliance with building regulations.

Regulation 4 and 41 of The Building (Procedure) Scotland) Regulations 2004 set out information which must be provided in support of an application for building warrant or amendment of building warrant and the submission of a completion certificate. Changes to these regulations as a result of the stage one consultation require the provision of an energy and environment statement at both design and construction stages to support verification of compliance against specified mandatory standards.

Where a building warrant is required, proposals are subject to the scrutiny of verifiers prior to approval of building warrant or acceptance of a completion certificate. Local authorities have enforcement powers under the act to ensure compliance with approvals and the Regulations. Cases of non-compliance can be referred to the Procurator Fiscal and persons found guilty of offences in terms of the Act are liable on summary conviction to a fine not exceeding level 5 on the standard scale. Separate work is underway to review the sanctions which can be applied to non-compliance with building regulations.

12.3 Monitoring

The objective of this exercise is to deliver a reduction in delivered energy and a healthy indoor environment alongside the introduction of a robust compliance regime in new buildings through changes to building regulations. Building regulations are applied within a legislative framework summarised above. In line with Scottish Government policy, any implemented changes which address this issue should be subject to a review within a 10-year period. Any such review shall be accompanied by a further Impact Assessment.

13 Implementation and delivery plan

On completion of the current consultation, the results were analysed to support confirmation of changes needed to building regulations to enable the process of laying enabling regulations in December 2024. This will satisfy the requirement to give effect to Mr Rowley’s final 2022 Bill proposal by the laying of subordinate legislation by 14 December 2024.

A second consultation will be launched in Summer 2025 on the detailed proposals for technical and procedural changes enabled by the amended regulations. An updated suite of Impact Assessment will support this consultation.

An implementation date for changes will be confirmed on the laying of enabling regulations in December 2024. An in-force date in early 2028 received support, to enable engagement with industry to prepare for the revised standards. It remains the proposal that the review be concluded and all provisions needed to deliver the revise standards will be in place in early 2026. This offers a suitable period between publication of the full suite of changes and their implementation under building regulations.

Dissemination

Confirmation of the outcome of the conclusion of the stage one review and amendments to building regulations will be published on the Scottish Government website and notified to a range of key stakeholder organisations.

Notification will confirm that the review of standards will continue with the development of detailed proposals for improvement to performance targets and processes, for consultation in summer 2025.

Notification of the consultation is issued to a list of individuals and organisations previously identified as having an interest in building standards..

14 Post-implementation review

A review will be carried out by the Building Standards Division considering the implementation of the change made to building standards legislation and supporting Technical Handbook guidance. This review will monitor the effectiveness of the changes and ensure that subsequent reviews can be made on an informed basis. This will be done through engagement from early 2026 initially with bodies representing trades, designers, verifiers and the industry in general. Engagement will increase once the revisions are applied in full, with a potential implementation date of early 2028. It is anticipated that an initial report on the implementation of the standards should be provided within four years of implementation.

15 Summary and recommendation

Summary

This current review of building regulations is being undertaken in two stages.

This document reports on the first of those two stages and the regulatory amendments required to support the overall outcome of the review.

A full understanding of the costs and benefits of change will only be evident once the detail of changes to standards and performance targets and processes are set out next year. A full assessment of the cost and benefit arising from options will be presented in support of the second stage consultation in summer 2025.

For this stage, we sought consultation responses to enable confirmation of any changes to current building regulations needed to enable the actions that would define the improved targets and processes of a revised standard. There are therefore limits to the available evidence at present.

As noted in section 4.2, an assessment of likely costs associated with regulatory changes was initially proposed to be presented on conclusion of the stage one consultation, based upon an update of components of the previous 2021 consultation and the outcome of new commissioned research currently underway. New research remains in progress and, due to the limited nature of the regulatory changes now identified, only a general statement (below) is offered on the financial impact of changes at this point in the review.

Regulatory changes will be set out in The Building (Procedure) (Scotland) Amendment Regulations 2024. The regulatory changes proposed introduce a formal requirement for those delivering building work which is the subject of a building warrant to provide information to demonstrate how compliance is achieved for a range of mandatory standards which address energy and environmental performance. The statements will be supported by guidance published within the Building Standards Technical Handbooks.

Amendment will be made to The Building (Procedure) (Scotland) Regulations 2004 to introduce a requirement for developers to provide an ‘energy and environmental design statement” with applications for a building warrant or applications to amend a warrant and an ‘energy and environmental construction statement” with each completion certificate. These statements will describe how the design and construction of the building complies with paragraphs 3.13, 3.14, 3.28, 6.1 to 6.7, 6.10, 7.1 and 7.2 of schedule 5 of the Building (Scotland) Regulations 2004. These being the mandatory standards relevant to the delivery of energy and environmental performance.

The regulatory amendments do not change the standards which must be achieved but will, through a supporting guidance document define the minimum levels of action and reporting expected in providing such information. Formalisation of reporting is expected to have an impact on the actions of both developers and verifiers and this impact will be codified and costed as part of an updated Business and Regulatory Impact Assessment prepared as part of the stage two consultation in summer 2025.

Recommendation

It is recommended that proposals to amend The Building (Procedure) (Scotland) Regulations 2004 are approved.

The Building (Procedure) (Scotland Amendment Regulations 2024 confirm changes to subordinate legislation necessary to give effect to the final proposal by Alex Rowley MSP. Further action to define and confirm non-legislative elements of change will be progressed to consultation in summer 2025, with the intent of completing the review in early 2026. Based upon the support expressed in consultation responses to a linger implementation timetable, it is recommended that regulatory changes apply from March 2028.

It is again stressed that the full detail of proposed changes will determine the overall impact of the delivery of the new standard and its component parts – improvement to standards and targets and improvement towards a stronger, evidence-led approach to demonstrating compliance with energy and environmental standards. All components of the amended standards and compliance regime will be identified in support of the second stage consultation in summer 2025.

Accordingly, a full assessment of the overall costs and benefits of the proposed changes to building regulations to deliver improved energy and environmental performance will be confirmed prior to confirmation and implementation of the current regulatory changes.

16 Declaration and publication

I have read the Business and Regulatory Impact Assessment and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

Signed by the accountable Minister:

Paul McLennan, Minister for Housing

Date: DD MMMM YYYY

Policy contact:

Daniel Foulds
Scottish Government
Building Standards Division Directorate for Local Government and Housing
Denholm House
Almondvale Business Park Livingston
West Lothian
EH54 6GA

Telephone: 0300 244 4000

Email: bsdenergystandardsreview@gov.scot