Preparing For The Decent Homes Standard

Amongst the raft of impending changes under the incoming Renters’ Rights Bill, the Decent Homes Standard is set to be introduced in the private rented sector. It is estimated that around 1 in 5 rented properties do not currently meet the standard required and for some landlords, this will mean that property improvements will be required.

The Decent Homes Standard was introduced into the social housing sector in 2000, with the addition of the Housing Health and Safety Rating System (HHSRS) in 2006. The government introduced the new regulations to tackle the problem of poor condition social housing.

With the Renters’ Rights Bill expected to be introduced in late 2025 or early 2026, landlords of private rented properties should start preparing now for the upcoming changes by dealing with any issues and potential hazards to comply with the new rules.

What is the Decent Homes Standard?

The Decent Homes Standard sets out the minimum requirements of a rental property to ensure it is safe to live in, warm and in a decent state of repair. Properties must meet the requirements of the HHSRS which lists 29 different hazards including:

·      Damp and mould growth

·      Excess cold/excess heat

·      Pollutants such as carbon monoxide and uncombusted fuel gas

·      Crowding

·      Noise

·      Electrical and fire hazards

·      Hazards that could result in falls

The council may carry out a HHSRS assessment on rental properties and if any of these hazards (or any others listed) are identified, remedial action will be required. Non-compliance could result in fines or prosecution.

How can landlords prepare for the Decent Homes Standard?

Landlords should conduct a full property condition assessment, either doing this themselves or hiring a professional surveyor. If you choose to assess the property yourself, some of the key hazards to look for are:

·      Damp and mould

·      Leaks

·      Issues with structural integrity

·      Faulty/unreliable hot water and heating systems

·      Potential electrical or gas hazards such as faulty wiring

·      Poorly insulated or unsecure windows and doors

Another requirement under the Decent Homes Standard is that there are reasonably modern facilities. For example, kitchens must be less than 20 years old with adequate space and layout, and bathrooms must be under 30 years old.

Consequences for landlords not meeting the Decent Homes Standard

Properties that do not meet the Decent Homes Standard could require repairs or improvements costing an estimated average of around £8,000. Whilst 4 out of 5 properties should not require any remedial action, properties in poor condition could be costly to bring up to standard.

Councils have been given additional powers to prosecute non-compliant landlords, so getting prepared now should help to prevent issues in the future. Compliance matters aside, keeping rental properties in good condition helps to protect the value of the property, attract a better calibre of tenant and will encourage long-term rentals.

If you were considering updating a bathroom or kitchen, doing so before the new rules come into force is recommended, especially if they are very outdated. Upgrading bathrooms and kitchens will usually add value to the property, should you choose to sell in the future.

Are repairs regarded as allowable expenses?

Most types of property repairs are deemed as allowable expenses, so if you need to replace windows or roof tiles, the work could be claimed as an allowable expense, deductible from your tax bill.

Replacing a shower like for like would also be classed as maintenance and therefore an allowable expense, whereas a full upgrade of a bathroom is a capital improvement and is not classed as an allowable expense.

There are lots of changes coming for landlords and staying on top of all the new legislation can be overwhelming. At Evans Estates, we offer a full property management service, providing support with compliance and arranging maintenance to ensure properties are meeting the required standards.

If you would like to find out more, contact our friendly and experienced lettings team.