Decent Homes Standard: Landlords need support
The Decent Homes Standard could be extended to include the private rented sector, according to new Government plans. NRLA chief executive Ben Beadle is warning ministers landlords will need support if they are to stay in the sector as goalposts are moved once again.
Over the last few years us landlords have got used to the sands shifting beneath our feet.
Changes to mortgage interest relief, stamp duty and wear and tear allowances have all had an impact, as has the introduction of various licensing schemes up and down the country.
Landlords’ ability to regain possession of their homes going forward is still up in the air, with the Government yet to publish its white paper on rental reform – and now we are being told that housing standards within the sector could be set to change, with the Decent Homes Standard extended from the social sector to cover the PRS as well.
The announcement was made in the Government’s levelling up white paper, made public earlier this year, but it is not yet clear exactly what the standard will look like.
Safe warm and secure homes
I am sure every landlord worth their salt would agree that every tenant – regardless of tenure - deserves a home that is safe, warm and secure.
But is the existing Decent Homes Standard, with its over reliance on arbitrary figures, really the right vehicle for delivering this?
Legislation was introduced in 2006 to bring all homes in the social sector up to a Decent Homes Standard– based on metrics including the age of fixtures and fittings and room sizes.
Of course minimum room sizes already exist in the PRS – and rightly so – but other aspects of this standard, which remember was designed specifically for the social rented sector I don’t believe accurately reflect the many of the differences between it and the PRS.
Especially when considering the types and ages of properties that make up each.
Standards in the PRS are covered by the existing Housing, Health and Safety Rating System (HHSRS), a system which is itself currently under review.
Properties must be ‘fit for purpose’
What is key is whether a property is fit for purpose, not arbitrary figures – for example how long a bathroom or a kitchen has been in the property for. Metrics included in the existing Decent Homes Standard.
Any standard needs to be tailored to the private rented sector and I have been speaking to both the housing minister and shadow housing minister to make just this point.
While we are still awaiting the outcome of the Government’s consultation on minimum EPC ratings, it is looking likely that landlords will need to spend up to £10,000 per property on energy efficiency improvements to meet the new minimum standards in the next three years.
If the Government is to move the goalposts as regards broader property standards then there could be a potentially major impact on landlords’ businesses.
A review into the plans is currently underway and in my discussions with Government I have made the point that landlords will need encouragement if they are to comply with yet more new legislation if they are to stay in the sector.
This should include grant cash to make improvements above and beyond those covered by current legislation regarding standards in the PRS.
The need for a robust, vibrant private rented sector has never been greater -with increasing numbers of families, younger and older people relying on it for a home.
If landlords are to remain, and continue to invest, then the Government needs to support them to make any improvements needed.
We will work with the Government to ensure whatever standards expected of the sector are proportionate, fit for purpose and can be properly enforced.
Without this, we believe criminal landlords will continue to undermine the reputation of the vast majority of responsible landlords doing the right thing.
We will shortly be publishing our proposals for what a cross-tenure Decent Homes Standard should look like. Please keep an eye on our news pages and social media channels to find out more.
