New EPC rules could lead to higher fines for landlords without valid EPCs in Scotland

The Scottish government could impose fines on landlords for failing to have a valid EPC.

A technical consultation is underway on proposed changes to lodgement fees and penalty charges as part of its ongoing reform of the EPC system in Scotland.

However, Propertymark warns that increased fees and penalties could harm remote areas in Scotland, where upgrading properties to meet new energy efficiency standards may be impossible.

Penalty charges will increase

The Scottish government says the statutory lodgement fee will increase by £3.49 for domestic and non-domestic EPCs.

This rise is expected to improve the EPC system, including better oversight of assessors and updates to the way assessments are carried out.

Penalty charges will also increase to £500 for domestic properties and £1,000 for non-domestic properties, which the government believes will act as a stronger deterrent against non-compliance.

By 2028, private rented sector properties must meet a minimum EPC C standard, with owner-occupied properties required to meet the same standard by 2033 in Scotland.

However, the Scottish government has provided few details on how landlords will meet new energy efficiency targets.

Increased fees could disproportionately impact property professionals in remote areas

The Scottish government have also proposed changing the validity of EPCs from ten years to five years.

However, Propertymark has warned that while funding for the EPC system is necessary, the Scottish government must consider the financial challenges faced by landlords and letting agents.

Propertymark said: “Propertymark acknowledges the necessity of funding improvements to the EPC system, but we urge the Scottish government to consider the economic challenges landlords and property agents face.

“For remote areas such as the Scottish Highlands and Islands, properties often require more frequent EPC assessments due to unique heating systems and, increased fees could disproportionately impact property professionals operating in these areas.”

A Member of the Scottish Parliament (MSP) previously told Property118 how a landlord would have to erect a windmill outside his property just to meet new energy efficiency targets.