Update on Current Rental Property Standards

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Update on Current Rental Property Standards
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Following the long-delayed Renters Reform Bill
being introduced in parliament in May, many
landlords may be considering whether their rental
properties remain compliant with standards and
regulations. One of the complexities is that
the revised Decent Homes Standard, first
published in September 2022, was excluded from
the Bill due to ongoing consultations. Therefore,
while the Bill is expected to be made law in
October 2024, the government has yet to make any
formal announcements, and the updated Decent
Homes Standard is still a long way from becoming
legislation. In this article Tod Anstee
summarises the current requirements and outlines
what we anticipate changing for rental property
at some point within the next two years when the
Decent Homes Standard is finalised.
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What Is the Decent Homes Standard?
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• It is important to reiterate that the Renters
  Reform Bill and Decent Homes Standard are
  different and approach distinct aspects of the
  private rental property market
• The primary focus of the Renters Reform Bill is
  around evictions and tenancy security, such as
  removing Section 21 no fault evictions but
  broadening the acceptable reasons a landlord
  might choose to serve a Section 8 notice to end a
  tenancy.
• The Decent Homes Standard concentrates on
  property conditions, maintenance and health and
  safety factors, citing 12 of rented homes that
  are not in a reasonable condition or have serious
  issues such as mould and dampness.

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Another relevant point is that, in the
consultation process thus far, the government has
verified that around 79 of homes already let to
private tenants are fully compliant with the
current standards and require no further
investment or upgrades. The remaining 21 may
need work to address areas such as thermal
efficiency and fire safety provisions. Still, the
intention is to introduce a cost cap, where
landlords with a property that does need some
improvements will be expected to contribute up to
a maximum amount. As yet, we do not know what
the cost cap might look like or whether this will
be included in the final proposals once all
consultations have concluded.
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Current Rental Property Standards for Private
Landlords
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The original Decent Homes Standard is aimed at
social housing but began a review process back in
2020 along with the Levelling-Up Agenda, designed
to help meet a target to reduce the number of
rented properties considered non-decent by
half. Currently, private landlords must comply
with various regulations, but the Decent Homes
Standard, as it stands, does not apply to the
private rental sector and is not legally binding.
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• However, landlords are obliged to
• Fit smoke and carbon monoxide alarms, and ensure
  they are tested regularly.
• Follow safety regulations in multi-unit
  properties such as flats.
• Allow Housing Health and Safety Rating System
  inspectors to attend if requested by the local
  council this normally happens when a tenant
  reports a possible safety hazard.
• Rented homes must be in good condition, which
  applies to things like having gas and electrics
  tested and certified and ensuring that
  maintenance issues related to bathrooms, central
  heating and the structure of the property are
  addressed swiftly.

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What Will Change if the New Decent Homes Standard
is Introduced?
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The immediate impact will be that the Decent
Homes Standard applies to private and social
housing, providing consistent regulations and
legislation to make the requirements for property
conditions equal across all parts of the rented
housing market. Minimum standards in the
proposed Decent Homes Standard white paper
include requirements to ensure properties are
free of fire, fall and carbon monoxide risks, all
of which are already covered by landlord
responsibilities. A change that may have an
effect refers to bathrooms and kitchens, where
these rooms need to be positioned in the correct
place within the property and have sufficient
heating and noise insulation.
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Energy Performance Rating Changes
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The government has also stated that it intends to
work towards a target to increase the proportion
of rented properties with an Energy Performance
Certificate (EPC) rating of Band C by 2030. The
existing energy efficiency standards, introduced
in 2018 and revised in 2020, currently mean
landlords need to take action to improve the
energy performance of properties rated below Band
E. From April 2020, landlords cannot always let
properties with this rating and are expected to
spend up to a cost cap of 3,500, including VAT,
on improvements to bring the housing up to the
minimum standards. However, exemptions apply
where a landlord cannot bring the property to a
Band E rating without spending more than the cost
cap. More information about the plans to
introduce a minimum Band C EPC rating is covered
in our earlier article What is the EPC Band C
Rating and How Can Landlords Ensure Their
Properties are Compliant?
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The Proposed Landlord Rental Property Portal
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The consultation includes a suggestion that the
government introduce a Property Portal, where
private landlords need to register their property
and provide information that tenants can access
that shows whether the property is compliant. If
the proposal proceeds, the portal will allow
landlords to self-submit details, verifying
whether the property meets the minimum decent
homes standard and reporting exemptions.
Penalties for submitting incorrect or
intentionally misleading information could
potentially lead to fines of up to
30,000. Under the current system, local
councils are responsible for dealing with any
issues around safety hazards or complaints from
tenants. They are required to enforce standards
where a landlord refuses to comply with orders to
address maintenance issues or carry out repairs.
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The Decent Homes Standard proposal suggests that
the responsibility will remain with local
councils but make compliance a legal duty, with
non-compliance possibly treated as a criminal
offence. While many of the details remain
uncertain, and some of the elements of the
proposed reforms will undoubtedly be changed
before the revised Decent Homes Standard becomes
law, the vast majority of privately rented homes
will be largely unaffected. In the meantime,
landlords can check that their properties have
the requisite heating systems, energy efficiency
and upkeep to meet minimum standards noting
that only around 12 of all properties in the
sector are thought to require additional work to
bring them into good order. For more
information about either the Renters Reform Bill
or the Decent Homes Standard, please contact Tod
Anstee at any time.
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