The Decent Homes Standard – Are your properties compliant?

New Minimum Requirements for Rental Properties

In the social rented sector, there has been a ‘Decent Homes Standard’ for more than 20 years. To be considered ‘decent’, a rented home must be free of the most severe hazards as categorised in the Housing Health and Safety Rating System (HHSRS).

Meanwhile, in the private rented sector (PRS), accommodation is required to meet certain standards which aren’t that dissimilar to the Decent Homes Standards. While councils will base their assessments of privately rented properties on the HHSRS, landlords are required to:

• Make sure their property is ‘fit for human habitation’ at the beginning of the tenancy and throughout (as per the Homes (Fitness for Human Habitation) Act 2018).
• Keep properties in a ‘reasonable state of repair’.

In addition, there is a requirement for gas and electrical safety certificates and to meet minimum energy efficiency standards.

The RRB proposes introducing a legally binding minimum set of standards for the PRS. These are yet to be confirmed.

Key changes:

• A new Decent Homes Standard will set clear expectations for the minimum standards landlords’ properties must achieve.
• There will be stronger rules around keeping properties free from damp and mould and a minimum timeframe for fixing issues.
• Heating and ventilation systems will have to meet energy efficiency standards.
• Local councils will be able to fine landlords up to £7,000 if they fail to keep properties free from serious hazards. (Currently, landlords can only be prosecuted by the courts for letting a sub-standard home.)
• The maximum repayment under a rent repayment order (RRO) is increasing from 12 to 24 months’ rent.
  
  

What This Means for Landlords

• Landlords will have clear guidance around minimum standards of health and safety in their properties.
• Some investment may be needed to ensure minimum standards are met, e.g. upgrading heating systems.
• Regular property inspections will become even more important.
• There will be a strict legal timeframe for investigating and fixing the most serious hazards.
• If landlords fail to comply, tenants will be able to challenge them through the court for breach of contract.
• The consequences for failing to keep properties up to standard will become more severe:
  • Councils will be able to issue a civil penalty of up to £7,000.
  • If a landlord fails to comply with enforcement action, they may be criminally prosecuted – including being taken to court by tenants.
  • If the council or a tenant applies to the First-Tier Tribunal for an RRO, a landlord could be ordered to repay up to 24 months’ rent.
    
    

Steps for Landlords to Stay Compliant

• Carry out regular periodical inspections to ensure properties remain is good condition – paying particular attention to any signs of damp or mould.
• Upgrade heating systems to meet energy efficiency requirements.
• Ensure electrical and fire safety standards are met.
• Be prepared to address and resolve issues quickly.
  
  

What This Means for Tenants

• Tenants will be able to expect safe, well-maintained and secure living conditions.
• They are less likely to face problems with damp, heating and safety hazards.
• The amount they could receive under a rent repayment order, if their landlord fails to keep the property up to standard, will double from 12 to 24 months’ rent.
• All renters in England will be given the right to challenge their landlord in court for breach of contract if their living conditions are dangerous.

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FAQs

1) What is the Decent Homes Standard?

A set of legal requirements ensuring rental properties meet safety, heating, and structural standards. It currently only applies to the social rented sector, but the RRB proposes extending this to the PRS – possibly with some additional requirements.

2) What will happen if a property doesn’t meet the standard?

The local council will be able to issue an enforcement notice for repairs to be made and could penalise landlords with a civil penalty of up to £7,000. Landlords who fail to make any necessary improvements could be taken to court by either the council or their own tenants.

3) How can landlords check if their properties are compliant?

By making regular inspections and having a qualified lettings professionals carry out assessments.

4) What will be the penalties for non-compliance?

If problems are not rectified within any legally required timeframe, the local council can issue a civil penalty of up to £7,000 and could prosecute a landlord in court. Tenants can already apply to the First-Tier Tribunal for a rent repayment order (RRO) and they will be given a new right to take their landlord to court for breach of contract. If a rent repayment order (RRO) is made, the maximum amount will be 24 months’ rent – double what it is currently.

5) Will these changes apply to all rental properties?

Yes, all privately rented homes will have to meet the updated Decent Homes Standard.

6) What is Awaab’s Law?

Awaab’s Law is named after a young boy who died in a social-rented home as a result of prolonged exposure to mould in the property and requires social landlords to take swift action when health hazards are recognised. The RRB will extend this to the private rented sector and set strict legal timeframes for landlords to investigate and fix reported serious hazards such as damp and mould. 

7) How often should landlords inspect their properties?

Every 6-12 months - more frequently if issues arise.

8) What are the most common issues landlords need to fix?

Damp, mould, poor insulation, heating problems and electrical safety hazards.

9) Can tenants report a landlord for non-compliance?

Yes, tenants can contact local authorities if they feel their home falls below minimum standards and can apply to the First-Tier Tribunal for a rent repayment order (RRO). The RRB will give them a new right to take their landlord to court for breach of contract.

10) Will landlords need to improve energy efficiency under the RRB?

While new energy efficiency rules are yet to be defined, landlords will have to ensure heating and insulation in their property meets the minimum requirements. This may require some landlords to invest in improvements.

It is expected that properties will need to meet an energy performance rating of ‘C’ in the future – it’s currently ‘E’. So if you are considering buying a new property to let or renovating an existing one, it’s worth investigating what changes you can make to improve the property’s energy performance as soon as you are able.

11) How can landlords prepare for future changes?

Stay informed about new regulations – either by working with a qualified letting agent or joining a landlord association - and make proactive property upgrades.