Private landlords will need to spend a combined £26.5 billion to bring their properties up to the new Decent Homes Standard, according to government data published this week.
The figures, released as part of the English Housing Survey briefing on modelling the new standard, reveal that compliance costs for the private rented sector are roughly double the £10.9 billion needed to meet the existing standard.
Failure rates set to double
Under the current Decent Homes Standard, 21 percent of private rented properties – around 1 million homes – fail to meet requirements. Under the new standard, that figure rises sharply to 48 percent, affecting approximately 2.4 million homes.
The new standard requires landlords to ensure properties are in a reasonable state of repair and provide core facilities including a kitchen with adequate space and layout, an appropriately located bathroom and WC, and adequate protection from external noise.
For landlords already facing refinancing pressures and rising operational costs, the additional compliance burden represents a significant financial challenge.
Average upgrade costs
The mean cost per dwelling in the private rented sector is around £11,000 under both the existing and new standards. However, individual property costs vary significantly depending on current condition and the specific works required.
Social housing faces a total estimated cost of £11.3 billion to meet the new standard, with £4.8 billion applying to local authority properties and £6.5 billion to housing association homes.
The announcement comes alongside confirmation that all private rented and social housing properties must meet EPC C targets by 2030. Industry experts have warned the combined regulatory burden could accelerate landlord exits from the sector.
Full details of the modelling are available on the government website.
Editor’s view
The numbers are stark: half of all private rental homes will fail the new standard. With EPC upgrades already looming and mortgage costs elevated, many landlords will run the sums and conclude the margins no longer work. The government’s ambition to improve housing quality is understandable, but the pace and cost of change risks shrinking the very sector it aims to regulate.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 February 2026
Sources: Ministry of Housing, Communities and Local Government, English Housing Survey
Related reading: Landlords face £20bn EPC upgrade bill as 2030 deadline looms
