Raising the Bar: How the Decent Homes Standard Will Reshape Property Investment
- DNB Future Properties
- Jan 2
- 7 min read
Updated: Jan 23
The Renters' Rights Act 2025 is not just about evictions; it’s about property quality. For the first time, the Decent Homes Standard (DHS), long applied to social housing, will be legally extended to the private rented sector. This move signals a zero-tolerance approach to substandard housing and mandates a proactive shift in maintenance and investment strategies for every landlord.
What the Decent Homes Standard Requires
The DHS is broken down into four key compliance areas. Your property must satisfy all four of these criteria:
1. Be Free From Serious Hazards: Your property must be free from any serious health and safety hazards, as defined by the Housing Health and Safety Rating System (HHSRS). This includes checking for fire risks, structural stability, and, critically, severe damp and mould.
2. Be in a Reasonable State of Repair: All essential facilities and components—such as the roof, windows, doors, walls, and plumbing—must be in good repair and not nearing the end of their useful life. Proactive maintenance, not just reactive fixes, is now required.
3. Provide Adequate Thermal Comfort: The property must have adequate and efficient heating and effective insulation. This typically means having an effective heating system and proper loft/cavity wall insulation to ensure tenants can keep warm at a reasonable cost.
4. Have Reasonably Modern Facilities: The home must feature reasonably modern facilities and services, including a functional kitchen and bathroom that are not so old or worn that they disrupt modern living.
The Enforcement Power of Awaab's Law and Penalties
Coupled with the Decent Homes Standard is the extension of Awaab's Law to the private sector. This law establishes strict, legally defined deadlines for landlords to investigate and repair serious health hazards, particularly damp and mould, once reported by the tenant.
Strict Timelines for Repair
Awaab’s Law creates specific, mandatory deadlines that private landlords must meet when a tenant reports a hazard (such as damp and mould):
• Emergency Hazards: The landlord must investigate and commence repair/remediation work to make the property safe within 24 hours of being made aware of the issue.
• Significant Hazards: The landlord must complete the investigation within 10 working days and begin any necessary repair work within 5 working days of the investigation concluding.
If a property cannot be made safe within the prescribed timescales, landlords may be required to provide suitable alternative accommodation at their own expense.
The Consequences of Non-Compliance
Local authorities will be given stronger enforcement powers to issue fines and take serious action against non-compliant landlords. Failure to meet the DHS or adhere to the repair deadlines under Awaab's Law could result in:
• Fines: Civil penalties for failing to keep a property free from serious hazards can be up to £7,000. For serious or repeated non-compliance with the Act, a local authority can impose fines of up to £40,000 as an alternative to criminal prosecution, which carries an unlimited fine.
• Rent Repayment Orders (RROs): Tenants or the local authority can apply to the First-tier Tribunal for an RRO, where a landlord may be ordered to repay up to two years' worth of rent if the property was deemed non-decent.
• Property Portal Designation: Non-compliant properties and landlords could be designated on the new Property Portal, creating a public record of poor practice.
📅 The Implementation Timeline: Preparing Now
The full implementation date for the Decent Homes Standard and the new tenancy system is not yet confirmed but is widely anticipated to be in early to mid-2026 following the introduction of further regulations.
💡 Don't wait: Given the depth of the required changes and the severity of the potential fines, landlords should treat the impending commencement date as a hard deadline. The time to assess your portfolio, identify necessary upgrades (especially for older kitchens, bathrooms, and insulation), and budget for capital expenditure is now.
Your Action Point: Proactive Audit
Proactively audit your properties now. Don't wait for the tenant or the local authority to find a fault.
• Review HHSRS: Check your properties against the 29 categories of hazard in the HHSRS (not just damp and mould) to ensure you are Category 1 hazard-free.
• Maintenance Schedule: Transition your maintenance strategy from reactive to proactive. Schedule necessary repairs and replacements for items nearing the end of their useful life (e.g., old heating systems or worn bathroom suites).
• Compliance Budget: Identify and budget for any major upgrades needed to ensure full compliance before the new standards commence.
The extension of the Decent Homes Standard and the power of Awaab’s Law mark a watershed moment for the private rented sector. This isn't just a regulatory change; it is a fundamental re-prioritisation of tenant well-being and property quality that will redefine what it means to be a professional landlord.
The message is clear: properties that require constant, reactive maintenance or fall short of basic modern standards will become financial liabilities under the new regime.
For the savvy investor, this challenge presents a genuine opportunity. Those who act decisively now to upgrade their portfolios will benefit from:
• Reduced Voids: Higher-quality homes attract and retain better tenants.
• Lower Operating Costs: Proactive maintenance and energy-efficient upgrades reduce expensive emergency call-outs.
• Future-Proofed Investment: Compliance secures the long-term viability and value of your asset.
Your final takeaway is simple: Compliance is no longer a tick-box exercise—it is a core business strategy. The choice is between budgeting for necessary capital expenditure now or facing significant fines, Rent Repayment Orders, and reputational damage later.
Don't wait for the law to mandate your action; let market wisdom guide it. Start your comprehensive property audit today and reposition your investment for a more ethical and profitable future.
📑 Renters Rights Act 2025: Full Blog Series Index
This is one of a 10-part series exploring the Renters Rights Act 2025. Check out the rest of the posts below to understand all the changes coming to the private rented sector.
The Renter’s Rights Act 2025 formally known as the Renters Reform Bill has officially become law, bringing significant changes to the private rented sector in England.
The Landlord's Essential Guide to the Renter's Rights Act 2025 formally known as the Renter’s Reform Bill: 10 Critical Q&As. The Renters' Rights Act 2025 is a landmark piece of UK legislation designed to fundamentally rebalance the power dynamic in the private rented sector.
Read about how the end of 'no-fault' evictions will fundamentally change tenancy agreements and provide tenants with greater security of tenure.
Read about the new and reformed mandatory and discretionary grounds that landlords must now use when seeking to regain possession of their property
Discover the move away from fixed-term tenancies and how all new tenancies will now operate as periodic tenancies from day one.
We detail the new measures introduced to prevent landlords and agents from encouraging or participating in unfair rent bidding wars among prospective tenants.
Understand the new rule that restricts landlords from increasing rent more than once every 12 months, providing tenants with more financial certainty.
Explore the new legal duties placed on landlords to prevent discrimination against certain groups, particularly those receiving benefits or with children.
The Renters' Rights Act 2025 is not just about evictions; it’s about property quality. For the first time, the Decent Homes Standard (DHS), long applied to social housing, will be legally extended to the private rented sector.
We look at the new rules that make it easier for tenants to keep pets, requiring landlords to have a reasonable excuse to refuse a request.
Read about the role of the new Ombudsman and how it will provide a mandatory, impartial route for tenants and landlords to resolve disputes outside of court.
Read about the creation of the new portal that will require all landlords to register their properties and comply with certain standards to operate legally.
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These articles may have been drafted prior to release. Some content and images may have been generated by AI. All information is believed to be correct at the time of writing. The content and information provided in this blog post series are based on a synthesis of publicly available government guidance, parliamentary documents, industry analyses, and news reports regarding the Renters' Rights Act 2025. We may have utilised various external sources for this information. We make no representations or warranties, express or implied, about the completeness, accuracy, reliability, or suitability of the information gathered from these sources. We assume no responsibility, nor any affiliation, with the external sources used; the content is presented solely for informational purposes. You should always seek independent professional and legal advice before making any decisions related to property management or compliance with new legislation.
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