Plans for heat pumps in Scotland
On 25 July, the Scottish Government published a consultation that proposes to downgrade the Energy Performance Certificate (EPC) ratings of homes with gas boilers compared with homes with more energy-efficient systems such as heat pumps.
Already, legislation will ensure gas boilers are banned in newly-built homes from April 2024.
The Scottish Government has pledged to ensure that all homes will have a ‘band C’ EPC rating by 2033, where it is “technically and legally feasible and cost-effective”.
The Consultation explores ways in which the yet-to-be-published Heat in Buildings Bill will ensure this target is met, along with the other Government target of prohibiting the use of direct emissions heating systems in domestic and non-domestic buildings by 2045.
There are concerns, however, that it will not be feasible to meet the targets; heat pumps are considered to be the most energy-efficient alternative to gas boilers, but the costs of operating them are uncertain and they are considered unsuitable for around 40% of Scotland’s houses. Alternatives are available but their efficiency and operating costs are also uncertain. The consultation can be viewed here.
Rent controls may be increasing rents
In September 2022, the Scottish government froze rents and introduced an eviction ban, then capped in-tenancy rate increases at 3% until 31 March 2024. This ‘temporary’ legislation announced in September 2022 is set to be continued and expanded in proposals due to be put before Holyrood in the current legislative year. In his article for the Scotsman, David Alexander, of DJ Alexander Sales & Lettings argues that due to rents increasing by 5.7% in the year to July 2023, the rent controls are not working, the situation is actually worsening for tenants and the freeze should not be extended.
More Council Tax for large homes
In a consultation that closed in October, the Scottish Government is proposing to change council tax rates in a shake-up that further moves Scotland’s tax system to that of the rest of the UK.
The proposals include changes to reflect the circumstances created by the cost crisis and also approaches to longer-term reform of the system. The Scottish Government acknowledges the criticisms of the present council tax system, which is seen by some as unfair and regressive because it levies a higher tax rate on lower value properties, and a lower rate for higher value properties.
Council tax in Scotland has historically been lower than in England, but under the proposals, this will no longer be the case for those with the highest-rate homes. A band H home in England pays twice the tax of a band D property, but in Scotland, the ratio is set to rise to three times that level. The typical band H property in England will incur council tax of £4,130 per year, while its equivalent in Scotland will pay £4,253.
November 24th, 2023
