Ensure you’re energy efficient
New regulations affecting how Energy Performance Certificates work are on the horizon, writes Barbara Mayne
With world leaders convening in Brazil for the COP30 climate change conference, sustainability finds itself back on the agenda. But changes are not just being discussed far away in Brazil; they are also on the horizon in Scotland, where new regulations will shortly come into force, affecting how Energy Performance Certificates (EPCs) work for both domestic and non-domestic properties.
An Energy Performance Certificate (EPC) is a legal document showing how energy-efficient a property is. It’s required when a property is built, sold, or rented, and helps buyers, tenants, and owners understand the energy performance and environmental impact of a building.
The new regulations - the Energy Performance of Buildings (Scotland) Regulations 2025 - are intended to revoke and completely replace the 2008 regulations governing the production and use of EPCs in Scotland and will be effective from 1 November 2026. Ultimately, the principal purpose of these updates is to bring Scottish regulation more closely in line with current practices applicable to the rest of the UK, modernise energy assessments and support Scotland’s net-zero ambitions.
Some current practices and requirements will continue to be recognisable under the new regulations, principally the requirement to obtain and display an EPC upon construction of a new property, and/or when an existing property is sold or leased. The categories of exempt buildings remain the same. Penalty charges for breach of EPC regulations will continue to be levied at current prescribed rates (currently £500 for failure to produce a domestic certificate and £1000 for non-domestic breaches). However, the new regulations will introduce the following changes:
- Domestic properties will be subject to a new EPC rating system concerned with heat retention, heating systems and energy cost ratings, all focused on energy efficiency;
- Non-domestic properties will be subject to their own new rating system concerned with energy performance, energy use and direct emissions ratings;
- For all properties, an EPC will have a reduced lifespan of 5 years (down from 10 years), and will be accompanied by a Property Report, setting out potential measures to improve energy efficiency and lower energy costs of the property, with information on potential alternative, more efficient heating systems;
- Enhanced quality assurance measures will be introduced through a new accreditation scheme for EPC assessors, requiring organisations to be approved before they can produce and issue EPCs and property reports;
- A public EPC Register will continue, with the introduction of fees for data entry to this (£6 for domestic properties and £15.50 for non-domestic properties)
The Scottish Government has acknowledged the possibility of resulting negative impacts on some parts of the property market and made certain transitional arrangements, to apply from and after 1 November 2026. These arrangements (with exceptions for certain specific types of property) allow either set of regulations to be applied for one year. It’s important to note this one-year period ends if a property is sold or let before 31 October 2027, and again that in certain circumstances, timings are subject to certain different arrangements.
Furthermore, the Scottish Government has said in the run-up to the new regulations coming into force it intends to undertake various steps which include public engagement through communications and marketing to ensure awareness of the new Regulations. It will be interesting to watch and learn more specific detail from the Scottish Government as more information about the Regulations and their practical application becomes known.
Barbara Mayne is a Legal Director, TLT LLP