Scotland’s new environmental regulations aimed at improving energy efficiency in rental properties risk worsening the country’s housing shortage, according to a stark warning from the Scottish Association of Landlords (SAL).
The association has sounded the alarm over proposed Minimum Energy Efficiency Standards (MEES), set to take effect in 2028 for some private rented homes and rolled out across the sector by 2033. SAL claims the measures could deter investment, reduce the number of rental properties, and offer minimal environmental benefit.
The estimated £600 million cost of upgrading homes has raised concerns among property owners, with SAL arguing that the rules could shrink the private rented sector (PRS) at a time when demand for housing is at a critical high. The group also warns that the policy could delay efforts to move people from emergency accommodation into more permanent housing.
“During a housing crisis, the correct thing to do would be to make investment more attractive and remove as much friction from the housing sector as possible,” said SAL Chief Executive John Blackwood. “These measures do the opposite – they are expensive, bureaucratic, and send the wrong signals to investors.”
Blackwood stressed that landlords lack sufficient time and information to prepare for the changes. Key technical reports on how best to meet the new standards are not expected until 2028 – the same year some of the requirements come into force. Assessment reports won’t be available until autumn 2026, leaving landlords in limbo.
“They will cause unacceptable delays, particularly for those moving from emergency homeless accommodation into a private rented home,” Blackwood added.
The association warns that many properties could be left vacant for extended periods as costly renovations take place, further reducing the number of available homes and prolonging stays in temporary housing.
SAL is now urging ministers to reconsider what it calls “dangerous proposals” and instead work collaboratively with the sector to create an environment that fosters investment and long-term stability.
While the Scottish Government has made no formal response to the latest criticism, the debate highlights the tension between environmental goals and the immediate pressures facing Scotland’s strained housing market.