Background
Back in the summer of 2025 the Government consulted on how to reform Decent Homes Standards (DHS) and it has now published its response. It sets out significant changes which will impact both the social and private rented housing sectors.
The Housing, Communities and Local Government Committee (HCLGC) (a cross-party committee established to scrutinise and refine housing policy) has also considered the Government's responses to the DHS consultation as part of their report on "Housing Conditions in the Social Rented Sector" (fourth report of session 2024 – 2026) (the HCLGC Report). It includes their recommendations on how to successfully implement the new DHS and will likely form the basis of further guidance to be provided by Government.
We set out below the key takeaways so that stakeholders can better understand the scope of the changes, how Government will likely finesse the detail based on recommendations in the HCLGC Report and how stakeholders will need to prepare to ensure compliance.
Expansion to the private rented sector
The reformed DHS will apply to both the social rented sector (SRS) and the private rented sector (PRS) for the first time, meaning that all tenants in rented housing will benefit, regardless of who their landlord is. This represents a transformative shift in housing regulation. As of 2023, 21% of homes in the PRS and 10% of homes in the SRS failed to meet the DHS, highlighting the urgent need for reform, particularly in the private sector.
The Renters' Rights Act 2025 will allow the DHS to be applied to the private rented sector and will be enforced by local authorities whilst the Regulator of Social Housing will continue to regulate the social rented sector. PRS tenants will access redress through the new PRS Landlord Ombudsman Service.
Decent Homes Standards
The DHS has defined baseline expectations of housing quality in the social rented sector since 2001, requiring properties to: be free from category 1 health and safety hazards; be in a reasonable state of repair; have reasonably modern facilities and services; and provide a reasonable degree of thermal comfort. However, the DHS was last updated in 2006 and is now out of date.
Key updates
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Criterion B – State of Repair: The new DHS will remove age from the definition of disrepair and focus on condition using outcome-based descriptive definitions rather than percentage-based thresholds. The building component list will include additions relating to bathroom components, fire safety, damp and causes of damp, safe access, internal finish and security.
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Criterion C – Facilities and Services: Landlords will be required to provide at least 3 of the listed essential facilities for flats and at least 2 of the remaining 3 for houses. All rented properties must provide child-resistant window restrictors on all windows which present a fall risk for children.
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Criterion D – Thermal Comfort: Properties will need to comply with their respective Minimum Energy Efficiency Standards (MEES) requirements to meet Criterion D. The primary heating system will need to include a distribution system capable of providing heat to the whole home, and the DHS will retain the requirement for programmable heating.
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Criterion E – Damp and Mould: A new Criterion E will require that landlords ensure their properties are free from damp and mould. This will be in addition to Awaab's Law, which has been introduced in the social rented sector and the Government has committed to applying to privately rented properties.
The HCLGC's Report noted that the new DHS could have gone further e.g. requiring digital connectivity and prevention of overheating and that various RICS surveyors (as part of the Northern Housing Consortium) recommended that the DHS should be periodically reviewed and updated to ensure that the mandated minimum standards reflect modern expectations.
The HCLGC has therefore recommended that the Government implements this approach so that, if necessary, it can update the DHS at least every 10 years to ensure it reflects the changing needs of the population, environmental pressures, scientific evidence of the hazards to health from poor housing and societal expectations of what a decent home consists of.
Time frames for implementation
Compliance with the updated DHS will be required by 2035 to give sufficient time for landlords in each tenure to plan and undertake necessary works. The Government expects to see steady improvement in conditions now that the new DHS has been published and will begin monitoring rates of compliance ahead of the final deadline.
The HCLGC's Report considers the balance between Landlord and Tenant interests in implementing the new DHS. The National Housing Federation considers the 2035 time frame appropriate in order to permit social landlords to align funding requirements and the G15 has stated that it is the 'only deadline that provides landlord's with the necessary time to prepare' due to the need to survey their stock, organise strategic work programme and allocate necessary budget. Tenant respondents to the consultation however did not consider 2035 to be soon enough to address the needed improvements.
The Housing Ombudsman proposed that phasing-in aspects of the revised standards could be feasible and so HCLGC has taken this on board and recommended that the Government puts in place interim targets (by way of % of social homes which should be upgraded each year before the final implementation date) to demonstrate to tenants that progress is being made.
The Government has acknowledged that there will be circumstances where it may be prohibitively hard or impossible to meet certain elements of the standard e.g. due to planning restrictions. The Government has said that it will provide further details on acceptable exceptions from the DHS in upcoming guidance.
Funding challenges
Both types of landlord face significant financial pressures. In responses to the Consultation, Landlords raised concerns about costs associated with the reforms, particularly if grant funding / incentive scheme were not made available. Most SRS landlords raised concerns about the cost of the reforms alongside implementing MEES and other regulatory changes.
Social landlords are already struggling to balance their Housing Revenue Accounts and it is anticipated that new regulatory requirements will add further pressure to the challenges of meeting net zero targets and building safety improvements.
The Government considers that the situation will be eased by the following changes in social rents:
- A single housing quality framework or strategy that consolidates, and aligns, the regulatory requirements on social landlords;
- A pooled fund that brings together existing funding for improvements to social homes and gives providers greater flexibility; and
- Local partnerships between local government, social landlords and the private rented sector to address skills and supply chain constraints.
Given that the HCLGC does not call for specific grant funding to be provided for the new DHS, we expect that the Government's position will remain that Landlords will need to budget for DHS works using rental income rather than relying on grants or incentive schemes.
It may be the case that social landlords will be given greater autonomy on pooling funding and spending as required but, given current fiscal challenges and that the DHS will be an additional regulatory requirement, it remains to be seen whether the long-term rent settlement and rent convergence mechanism will provide sufficient funds for delivering the new DHS.
Enforcement and sanctions
Landlords will need to prepare well in advance and factor in DHS in long term works programmes to ensure their housing stock complies with the required standards by 2035.
Action will be taken where landlords fail to comply with DHS requirements. In the social rented sector, the Regulator of Social Housing will regulate the new DHS through its standards and will monitor and assess landlords' compliance. If social landlords fail to meet such requirements, then it could result in a regulatory downgrade.
In the private rented sector, local authorities will have strong powers to issue penalties for non-compliance. The Renters' Rights Act will strengthen enforcement by giving local authorities a new power to issue financial penalties of up to £7,000 to landlords who have failed to take reasonably practicable steps to keep their properties free of category 1 hazards. Given this concerns safety, the Government intends to keep to the timeframe of implementing this by summer 2026.
Next steps
The reformed DHS represents a significant step towards ensuring all tenants – whether in social or private housing – live in safe, warm and decent homes. However, there are a host of issues which must be addressed in order to bring about successful implementation.
The HCLGC's Report sets out a number of recommendations which ought to address concerns raised by various stakeholders. Committee recommendations are reviewed by Government and are often accepted in part or full in order to refine policies further. The Government normally responds to Committee reports within 2 months of publication and so the sector ought to receive much needed further guidance in early April.
