More than one in five private rented homes in England would fall foul of proposed new legal standards, as ministers push ahead with reforms that could force landlords to upgrade properties or exit the market altogether. Analysis from Inventory Base reveals that 21% of privately rented homes currently fail to meet the Decent Homes Standard (DHS)—a benchmark the government now wants to extend to the private sector via the Renters’ Rights Bill.
Decency threshold could redefine legality in buy-to-let
The DHS was originally introduced for social housing back in 2006, setting minimum requirements on safety, repair, thermal comfort, and facilities. But under the Renters’ Rights Bill (RRB)—which also seeks to abolish fixed-term tenancies and no-fault evictions—the DHS could soon apply to all privately rented homes too.
Based on the latest government figures, an estimated 1.027 million PRS properties in England currently fall below the DHS threshold. That’s over one in five rental homes—properties which, if the Bill passes in its current form, would become legally unlettable without significant upgrades.
“Over a million privately rented homes will require significant upgrades,” warned Sián Hemming-Metcalfe, Operations Director at Inventory Base. “That’s a massive, time-intensive, and costly task—especially without a clear support structure. The likely outcome? Widespread non-compliance or accelerated landlord sell-offs.”
Landlords given until 2035—but is that realistic?
The government has opened consultation on a reformed Decent Homes Standard, set to close in September. Proposals currently suggest implementation by either 2035 or 2037, ostensibly giving landlords a long runway to comply. This aligns with separate proposals to introduce new minimum EPC standards by 2030—though landlords remain sceptical that timelines are being set with market realities in mind.
“This is the most disruptive rental sector reform in a generation,” said Hemming-Metcalfe. “From Section 21 to pets and now decency thresholds, landlords are facing a maze of regulation with no roadmap for support.”
Even in social housing, where the DHS has applied for nearly two decades, 10.3% of homes still fail to meet the standard. The scale of the challenge in the private sector—especially among older housing stock in low-income regions—is likely to dwarf this.
While landlords welcome clarity, many argue the deferred implementation date is politically convenient but practically damaging.
“Deferring implementation until 2035 or later isn’t strategic—it’s negligent,” Hemming-Metcalfe added. “It legitimises inaction and leaves millions of tenants stuck in substandard homes for another decade.”
Policy confusion could squeeze landlords out
Landlords already grappling with mortgage pressures, anti-landlord rhetoric, and uncertain rent regulation face yet another compliance hurdle—this time backed by the threat of legal sanctions. And unlike EPC deadlines, which focus on energy performance, the Decent Homes Standard covers a wider set of conditions including state of repair, thermal comfort, and internal facilities.
Critics argue the government’s approach lacks coherence. With over 3.78 million homes across all tenures currently failing the DHS (equivalent to 14.9% of England’s total housing stock), applying a new legal bar to the PRS without financial support risks shrinking the rental supply just as demand hits record highs.
“The Renters’ Rights Bill, if implemented in full, risks pushing compliant landlords out of the sector and trapping tenants in limbo,” said Paul Barber, a private landlord in Leicester. “It’s the same story—headline reforms with no grasp of the operational or financial realities.”
Where next for landlords?
With the RRB still under consultation, landlords should begin assessing their portfolios now. Understanding which properties are likely to fall short of the proposed DHS is essential—not just to maintain compliance, but to protect long-term value in a tightening regulatory environment.
Whether these reforms achieve genuine progress or trigger a wave of exits from the PRS may ultimately depend less on legislation—and more on whether government support follows through. Because as it stands, landlords are once again being told to meet the standard—without being given the tools to get there.
