Following a consultation in 2023, the Scottish Government has announced proposals for the extensive reform of Energy Performance Certificates (EPCs), with the aim of making them more accurate and easy for property owners to understand.

Every property that is being sold or rented has an EPC, which rates the property’s energy efficiency from A (the most efficient) to G (the least). The certificate is meant to give property owners a sense of what their energy costs will be, and the environmental impact of heating their property.

The Scottish Government has now announced proposals to introduce an entirely new ratings system, which should give clearer information about emissions, energy efficiency and costs. This move will align with the Scottish Government’s broader goal of reducing emissions and improving energy efficiency. The changes proposed include:

• The validity period of EPCs being reduced from 10 years to 5, requiring more frequent assessments and more up-to-date information for property buyers.
• A redesigned certificate, designed to make the information clearer and more accessible.
• More in-depth information on energy costs, efficiency and emissions.
• Strengthening governance arrangements for EPC assessors, to ensure that high-quality assessments are carried out across the country.
• A new assessment procedure and EPC Register, which will be shared with the UK Government to ensure similarly high standards across the UK.

In a statement on 21st January 2025, Alasdair Allan, the acting Minister for Climate Action, explained the benefits of the proposed new system:

“The system will ensure better information for consumers on how well a property retains heat and on the emissions and efficiency of its heating system, as well as redesignated and more accessible certificates. Consumers need to be able to trust the EPC assessment process, so the new regulations will be accompanied by tighter governance requirements to improve quality assurance.”

While this is a progressive proposal containing changes for which the industry has been asking, it could cause uncertainty for property owners and landlords. Nobody is yet sure about what kinds of improvements homeowners could be advised to take to improve their new EPC rating. It is believed that these details could be elaborated upon in the upcoming Heat in Buildings Bill, which would give property owners clarity about their next steps. In an interview with Good Morning Scotland, Josiah Lockhart, Chief Executive of low-carbon charity Changeworks explained:

“We don’t know what we’re being encouraged to do yet, until we see what the Scottish Government will produce in the Heat in Buildings Bill… that will set the timeline and dictate to us when and how we do this [make improvements to properties based on the new EPC ratings system]”

Following Parliamentary approval, the proposed changes are expected to come into force in 2026.

Click here to find out more about the EPC reform, from Scottish Housing News