Energy Efficiency Standard for Social Housing post 2020 (EESSH2) review: interim guidance for social landlords

Investment decisions

22. Investment in housing will be affected by the current cost-of-living crisis. The Scottish Government recognises that the rises in inflation puts additional pressure on existing programmes, including increased costs for installers and materials, and on existing commitments for maintenance and repair. Landlords will be mindful of uncertainty around inflation and the development of the moratorium on rent increases, and the impact of these factors on business planning. Landlords will also be mindful of the difficulty of ensuring investment is cost effective, and the balance between reducing fuel costs and increasing rents.

23. EESSH2 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. EESSH2 provides that landlords have broad discretion to decide if potential energy efficiency measures are too expensive, or are not value for money in their stock. However, it remains the case that decarbonisation will require significant changes to social housing, along with other buildings, in order to realise the aim to deliver net zero heating.

24. Landlords are expected to continue to seek funding opportunities and to have active plans for the improvement of their housing stock.

25. A cost-effective investment policy is recommended (see Section 8 of the EESSH2 guidance), and will continue to be valuable to support decisions on potential projects.

26. Further advice on potential funding sources will be produced and disseminated to social landlords. This will be developed as part of the EESSH2 Review.