Building safety and decarbonisation for property owners in Britain

Navigating the requirements can be challenging, especially as the rules in England and Wales differ from those in Scotland.

Many regulations are already in force governing building safety and building energy efficiency and decarbonisation, with new legislation proposed.

Building safety 

The Building Safety Act 2022

The Building Safety Act 2022 established a system of regulation for building safety across England and Wales. The main provisions of the Act came into force in England on 1 October 2023 and 6 April 2024 and have been supplemented by regulations that further detail the requirements to be met in England. The Welsh parliament, the Senedd, is responsible for enacting implementing regulations in Wales.

Among the main changes introduced under the Act is the introduction of a specific new building safety regime governing so-called ‘higher-risk’ buildings (HRBs).

HRBs are subject to approval at three ‘gateway’ stages of development – they must pass through the first ‘gateway’ to obtain planning permission; the second ‘gateway’ before building work can be commenced; and the third ‘gateway’ before a completion certificate is issued and the building can be occupied. The process is overseen by the new building safety regulator (BSR), provided for under the Act. The BSR sits within the Health and Safety Executive (HSE).

The Act also established a number of duty holder roles in respect of building safety for HRBs. Those duty holders are accountable throughout the design, construction, and occupation phases.

A ‘golden thread’ of information pertaining to HRBs must also be put in place and updated throughout the building’s lifecycle.

Developers and construction product manufacturers also face increased liability for building safety defects, including historic defects, under the Act, which also provides the government with powers to regulate construction products and introduce new regulations for the safety of construction products in the UK. The Act also provides protections for leaseholders in respect of the costs of remediating historic building safety defects in their properties.

Apart from the new powers relating to construction products, the Act does not apply in Scotland. Despite this, Scottish law makers have been developing separate plans to enhance the building control system and fund remediation of historic defects, with some features of those plans bearing similarity to features of the new regime in England. See more details below.

Compliance plan for high-risk buildings

The Building Standards division of the Scottish government has developed a new compliance plan approach for high-risk buildings. Compliance plans need to show that the duty to comply with the building regulations imposed on the ‘relevant person’ – usually a building owner or developer – is being delivered efficiently at the design and construction stages of a project. The plans need to be submitted when seeking a completion certificate for the building.

Building safety levy

There are plans for a building safety levy to be introduced in both England and Scotland.

In England, the secretary of state has powers to impose a new building safety levy in respect of certain residential development in England. The levy, which developers will be liable for, is intended to help fund remediation works to existing residential buildings where safety defects have been identified.

The secretary of state consulted on detailed proposals for the calculation and collection of the levy and the levy is anticipated to come into force in autumn 2026.

The Scottish government intends to introduce a building safety levy to mirror the one to be introduced in England and the Building Safety Levy (Scotland) Bill was published in June 2025. The proposed levy will apply to all new residential development in Scotland including build to rent and purpose-built student accommodation but will exclude affordable housing. The levy is anticipated to come into operation in 2027.

Cladding

The Housing (Cladding Remediation) (Scotland) Act 2024 confers on Scottish ministers powers to identify external wall cladding systems on residential buildings that create or exacerbate risks to human life and to address those risks; to establish a register to record that a building's cladding has been assessed and that remediation works have been completed; to enable one or more schemes to be established to require persons in the building industry to contribute towards assessing and remediating dangerous cladding; and for connected purposes.

The legislation applies to buildings constructed between 1992 and 2022 that stand over 11 metres tall and that contain at least one residential unit.

Energy efficiency and decarbonisation of buildings 

EPC legislation

Energy Performance Certifications (EPCs) were introduced in England and Wales in 2007 for both the commercial and residential private rented sectors. Under the EPC Regulations EPCs are required on the sale, letting and construction of buildings. EPCs are valid for 10 years. No minimum level of EPC rating is required on the sale of buildings but minimum levels of EPC ratings are required on the letting of property in England and Wales (see under MEES below). 

In Scotland, EPCs were introduced in 2008. For non-domestic buildings, EPCs are supplemented by the Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 (AEP Regs 2016). As part of a package of EPC reforms (see below), the Scottish government proposes to reduce the period EPCs are valid for from 10 years to five years.

EPC methodology and reform

The methodology currently used by energy assessors in respect of the EPC system in England and Wales differs to that used in Scotland. EPC ratings in England and Wales cannot therefore be directly compared with EPC ratings in Scotland. 

In June 2022, the methodology used in England was changed with the introduction of a new “primary energy” metric. This can have a significant effect on EPCs issued after that date as it takes account of grid decarbonisation over the previous decade. It means EPCs that pre-date June 2022 are unlikely to be accurate (although they currently remain valid for their 10-year life), with electrically heated buildings likely to attract higher ratings and fossil fuel heated buildings likely to have lower ratings. The methodology underpinning domestic EPCs changed further on 15 June 2025 by requiring more granular and accurate information about key building features and more categories of heating type being included.

A consultation was issued in December 2024 on the reform of EPCs in England & Wales. For commercial EPCs it was proposed not to amend the metric which determines the EPC rating which is a metric based on carbon emissions but possibly to add further metrics for information only purposes. For domestic EPCs substantial reform was proposed to address the concern that domestic EPC ratings are based on a energy cost metric and whilst gas is cheaper than electricity are seen to be driving the wrong behaviour and disincentivising the decarbonisation of heat. The consultation proposed that domestic EPCs should be based on multiple metrics, namely a fabric performance metric which measured the thermal efficiency of the property, a heating system metric with higher ratings for low carbon heating, a smart readiness metric which would measure the “demand side flexibility” based on features such as smart meters, onsite solar generation and battery storage and EV charging, and a cost based metric. It is not clear if ratings would be given for each type of metric rather than there being one overall EPC rating, but this seems likely and would enable further regulatory intervention (such as MEES) to be targeted at particular features of a property 

The consultation also sought views on reducing the validity period of EPCs, requiring EPCs at all times when the property is let and on requiring historic buildings to have EPCs on sale or letting and included proposals for transition provisions designed not to deter improvement works pending the new form of EPCs coming into force which it envisages will be in the second half of 2026.

The proposed new methodology for residential property will be used across the UK. The Home Energy Model (HEM) is intended to replace the current methodologies used in each jurisdiction and will focus on fabric performance, heating system type, and energy cost, to achieve better output in terms of data and awareness of energy issues. It is hoped that the UK HEM will be available in autumn 2026 which will bring residential EPCs in England, Wales and Scotland into alignment.

In Scotland, EPC reform of commercial buildings is also proposed although details are awaited. The EPC certificate will be redesigned and the validity period of EPCs will be reduced from 10 years to 5 years. A new EPC register will be hosted by the Scottish Government rather than by the Energy Trust. The new Scottish EPC register will be compatible with the England & Wales register so data can be shared. The proposed EPC regulations are anticipated to come into force in 2026 once the UK HEM is published.

One criticism of EPCs in England, Wales and Scotland is that they do not take into account the actual use, as opposed to the modelled hypothetical use of the property. Against this it is said there is value to owners, investor and funders in knowing the objective capability of the property in terms of energy efficiency, unaffected by the behaviour of a particular occupier. The proposed reforms do not include any proposals to make actual energy use a determining factor in EPC ratings although as currently, they propose to retain for information the energy use (i.e. modelled not actual energy use) shown on current EPCs.  There is no sign of any intention to progress separate measures consulted on in 2021 to rate the actual energy use of commercial and industrial buildings above 1,000 square metres in England and Wales.

Minimum energy efficiency standards (MEES)

In England and Wales, MEES are in place for both the residential and commercial private rented sectors respectively – currently, a minimum EPC E rating is required.

The government set out plans in its energy white paper in 2020 to impose stricter MEES for non-domestic property which would require those properties to have an EPC B rating on new and existing lettings by 2030 where cost effective. It consulted on delivering on that plan in 2020 and 2021, in which it also proposed an interim target for non-domestic buildings to meet an EPC C standard by 2027. Due to delay in any government response to those consultations which would set out its decisions in the light of those consultations, no stricter requirements have been announced.  The current government intended to respond in early 2025 and a response is now expected imminently. It is likely there will be a short delay in any increased MEES requirement to an EPC B which may now take effect in around 2031 and it is far from certain that an interim uplift will be imposed.

In 2020 the government consulted on MEES requirements for an EPC C for new lettings of domestic property from 2025 and for all lettings of domestic property from 2028. There was also delay following this from the government and in February 2025 the government responded to the 2020 consultation and issued a new consultation on domestic MEES. This new consultation proposes an uplift in MEES from 2028 for new tenancies and from 2030 for existing tenancies. It does not state what EPC rating the uplift will require as this will be dependant on the new form of EPCs and the underlying methodology for these which have yet to be finalised. It does however propose that the higher MEES requirement would be based on fabric metric and also on a secondary metric, which at the landlord’s choice could be a heating type metric or a smart readiness metric. 

A number of exemptions from compliance with current MEES requirements are available and it is not proposed that these should not continue to apply. It is proposed that the cost cap exemption will be amended to increase the cost cap from the current £3,500 to £15,000 but also that the resulting exemption would apply for 10 years rather than the current 5 years. Transitional arrangements are proposed including that an EPC C rating under the current EPC regime would satisfy any requirements under an uplifted MEES.

There are currently no MEES in force in Scotland. However, the Scottish government is proposing a minimum standard of energy efficiency equivalent to an EPC rating of C for private rented housing:

• by 2028 for new tenancies and
• by 2033 for all private rented housing.

It is anticipated that these regulations will come into force in 2026 after the EPC reform in Scotland has taken effect. The EPC rating will be based on the new HEM.

While failure to meet those standards would not prohibit a sale of the property, leasing to a new tenant would be prohibited where the standards are not met.

There are presently no plans for MEES for commercial tenancies in Scotland.

Heating systems

In December 2023, the UK government opened a consultation on technical standards for new Future Homes and Future Buildings Standards which would operate via the Building Regulations and apply to new homes or works requiring Building Regulation consent. The standards proposed would apply to England only. The government said at the time that it planned to lay regulations to implement the standards some time in 2024 with a view to the new rules coming into force in 2025, with a 12-month transition period to then apply before they take full effect.

It is proposed that all new homes and non-domestic buildings use low-carbon heating and are “zero-carbon ready”. This means no further work would be needed to those buildings to operate with zero carbon emissions once the electricity grid is fully decarbonised. In June 2025 it announced that it will be mandating roof top solar panels in the Future Home Standard (with some limited exceptions). A government response to the 2023 consultations is expected in Autumn 2025 with the standards coming into force in 2026 but possibly not taking effect for 12 months and subject to transitional provisions which will apply on a property and not site wide basis.

Previous plans to set dates for the phase out of fossil fuel heating have been set aside by the current government who said in December 2024 it would not force anyone to change their gas boilers but rather would incentivise changes from fossil fuel heating. The proposed Warm Homes Plan due  to be  published in Autumn 2025 may provide clarity on this.

In Scotland, the Scottish Government will publish a revised Heat in Buildings Bill in late 2025 which will set a new target for decarbonising heating systems by 2045 (where reasonable/practicable). This stops short of legally requiring homeowners and businesses to replace their heating systems by the target date. The revised bill will include the target alongside provisions to accelerate heat network development by developing requirements for large, non-domestic premises to connect to district heating when available and powers to set minimum energy efficiency standards for owner/occupier and non-domestic properties.

Since 1 April 2024, persons applying for a building warrant in Scotland are prohibited from using ‘direct emissions heating systems’ – systems which produce greenhouse gas emissions at point of use – to meet their space and hot water heating and cooling demand. Instead, the use of zero direct emissions heating technologies is required which includes bioenergy systems.

The rules apply to new domestic and non-domestic buildings, as well as the conversion of existing buildings. They also apply to any installed heating system within the curtilage of a building – but just to the main heating system. Secondary heating can be of any type.

District heating networks

The Future Homes and Building Standards consultation for England outlined the government’s support for the expansion of cleaner heat networks. It said new heat networks will be an important part of the UK’s ‘net zero’ economy.

According to the government, new homes and non-domestic buildings can be connected to existing heat networks, where that heat network produces sufficient clean heat to heat the new homes and non-domestic buildings to be added to the network.

Under the Energy Act 2013 OFGEM was appointed as heat networks regulator in England & Wales and Scotland and the ground was laid for heat network operators and suppliers of heat from them to require licences which would be subject to conditions on consumer protection issues such as fair pricing, required standards and carbon limits. Regulation is expected on this in late 2025 or in 2026.

The government has consulted on consumer protection in relation to heat networks in England. It is intended that customers of heat networks should enjoy the same consumer protection as they have for other utilities, 

There has also been a consultation on heat network zoning in England. This system would involve heat network zones being identified and a zone coordinator for each zone appointing a heat network developer. Within zones all new buildings and some large existing buildings would be required to connect to the heat network. The intention is that this regime would make the development of heat networks easier to fund and help the government reach its target of 20% of heat being supplied by heat networks from 2050 – up from 3% today.

In Scotland, a regulatory and licensing system for district and communal heating, provided for under the Heat Networks (Scotland) Act 2021, became operational in early 2024. The scheme forms part of the Scottish government's heat networks delivery plan.

In Scotland, there is also the concept of heat network zones. Since 30 May 2023, local authorities have been obliged to identify, consult on, and designate potential heat network zones in their areas. The Scottish government can also designate some zones. The purpose of zones is to attract investment from heat network developers.

Since 30 May 2023, owners of non-domestic public sector buildings have been required to produce a building assessment report for each of their buildings to check if they are suitable to connect to a heat network. This duty may be extended to non-domestic buildings beyond the public sector.

Further rules, which are not yet in force, will require prospective heat network operators in Scotland to obtain a permit to build and operate a network in a designated zone. One permit may be issued per zone for a specified number of years. This will help to encourage investment, by providing operators with exclusive access to high opportunity areas.

All heat network companies, including existing operators, will also need a licence to operate in Scotland. This will help to drive up standards, improving user trust and providing greater certainty to investors. A licence will give heat network developers certain rights and powers – such as compulsory purchase, road works and surveying rights – to help reduce construction time and costs.

A consent system is also to be introduced for heat network developments. Companies will need consent for each individual network they operate. This will help to make sure that networks are developed in places where they will have the most benefit, and that communities get a say in plans for their areas.

A new assets schedule and transfer scheme is also still to come into force. This will help to ensure continuity of supply for customers by enabling a smooth transition between operators, if their existing operator stops trading.