Raising the Bar: London’s New Property Standards (Decent Homes & EPC) for Landlords
For London landlords, ensuring your properties meet evolving standards is not just about compliance; it’s about providing safe, comfortable, and efficient homes, which in turn attracts and retains quality tenants. The coming years will see significant shifts in the minimum quality benchmarks for rental properties, spearheaded by the extension of the Decent Homes Standard to the private rented sector and the continued push for higher Energy Performance Certificate (EPC) ratings.
Understanding these impending regulations – including the crucial Awaab’s Law – is vital for proactive planning, budgeting for necessary upgrades, and avoiding potential penalties. This guide will break down what these new property standards entail for your London portfolio.
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The Decent Homes Standard: Elevating Rental Quality
The Decent Homes Standard, long a requirement for social housing, is being extended to the private rented sector as part of the wider Renters’ Rights Bill. This move aims to tackle substandard housing, ensuring that all tenants live in homes that are safe, in good repair, and have reasonable facilities.
While the full details and implementation timeline for the private sector are still being finalised (expected to roll out from 2026 or 2027), we can look to the existing social housing standard and government consultations for guidance on what will likely be required.
Key Components of the Decent Homes Standard:
- Satisfactory State of Repair: Your property must be in a good state of repair, addressing any significant defects to key building components (like roofs, walls, chimneys, windows, doors, and foundations) and internal amenities (like heating systems, plumbing, and electrics).
- Reasonably Modern Facilities and Services: This includes kitchens (typically under 20 years old) and bathrooms (under 30 years old) that are functional and adequately sized. It also considers adequate noise insulation and sufficient common entrance areas.
- Reasonable Degree of Thermal Comfort: Properties must be warm enough for tenants, meaning efficient heating systems and adequate insulation. This often translates to minimum standards for loft insulation (e.g., 270mm), cavity wall insulation, and double glazing.
- Free from Category 1 Hazards (HHSRS): This is where the Housing Health and Safety Rating System (HHSRS) comes in. Your property must not contain any serious hazards that pose a significant risk to the health or safety of occupants.
Action Point for Landlords: Begin by conducting a thorough, professional inspection of your London properties. Pay close attention to structural integrity, the age and condition of kitchens and bathrooms, and overall thermal efficiency. Address any existing Category 1 hazards identified by the HHSRS.
Awaab’s Law: Tackling Hazards, Especially Damp and Mould
Named after two-year-old Awaab Ishak, who tragically died due to prolonged exposure to mould in his home, Awaab’s Law introduces strict new deadlines for landlords to investigate and fix serious hazards, particularly damp and mould. While initially introduced for social housing (with phased implementation starting October 2025), the Renters’ Rights Bill will extend its principles to the private rented sector.
What Awaab’s Law (for PRS) is expected to require:
- 10-Working Day Investigation: If a landlord is made aware of a potential damp or mould hazard, they must investigate within 10 working days to determine if it’s a significant risk.
- 5-Working Day Remedial Action (Significant Hazards): If a significant hazard (like dangerous damp and mould) is confirmed, the landlord must take action to make the property safe (even with temporary measures) within 5 working days of the investigation.
- 12-Week Completion (Supplementary Works): Any further, supplementary work needed to permanently resolve the issue and prevent reoccurrence must be completed within 12 weeks.
- 24-Hour Emergency Repairs: All emergency repairs, including those related to damp and mould or other urgent hazards, must be addressed as soon as reasonably practicable, and certainly within 24 hours.
- Alternative Accommodation: If the property cannot be made safe within the specified timescales, landlords may need to offer suitable alternative accommodation at their expense.
Action Point for Landlords: Implement a robust system for handling tenant reports of disrepair, especially concerning damp and mould. Ensure your maintenance contractors are aware of these strict new deadlines. Proactive property inspections can help identify and address issues before they escalate.
EPC Regulations: The Road to Band C by 2030
The drive for greater energy efficiency in rental properties continues, with the government’s aim for all privately rented homes to achieve a minimum Energy Performance Certificate (EPC) rating of C by 2030. This ambitious target is being phased in, with the requirement set to apply to new tenancies from 2028, and to all existing tenancies by 2030.
Key EPC Considerations for London Landlords:
- Current Minimum (Band E): Properties currently require a minimum EPC Band E to be let.
- The 2030 Target (Band C): This is a significant jump for many properties, particularly older London homes.
- EPC System Reform (from 2026): The government is planning to overhaul how EPCs are measured and scored, introducing new metrics focusing more on “fabric performance” (how well a property retains heat) rather than just energy use. This means insulation and draught-proofing will become even more critical.
- Potential Spending Cap: While the average cost to upgrade to EPC C is estimated, there may be a spending cap (e.g., £15,000, potentially lower for some properties) after which landlords could register for an exemption if the property still doesn’t reach Band C.
- Penalties: Failure to comply with the new EPC regulations could lead to fines up to £30,000 for landlords who persistently rent out non-compliant properties.
Action Point for Landlords:
- Check Your EPCs: If you haven’t recently, obtain an up-to-date EPC for all your properties to understand their current rating and the recommendations for improvement.
- Prioritise Upgrades: Start planning and budgeting for energy efficiency upgrades now. Focus on measures that significantly impact fabric performance, such as loft insulation, cavity wall insulation, and double glazing.
- Explore Funding: Look into potential government grants (like the Warm Homes: Local Grant, expected to launch in April 2025) or ‘green mortgages’ that offer preferential rates for energy-efficient homes.
Preparing Your London Portfolio for the Future
The introduction of these new property standards underscores a commitment to improving housing quality across London’s private rented sector. While they present new obligations, they also offer opportunities: properties that meet high standards are more attractive to tenants, often command better rents, and are more future-proof.
- Proactive Inspections: Regularly assess your properties against these emerging standards, not just basic safety checks.
- Budget for Improvements: Factor in potential costs for upgrades, especially for older properties.
- Engage with Professionals: Work with reputable contractors, energy assessors, and legal advisors to ensure your properties are compliant and your processes are robust.
- Stay Informed: Keep abreast of the Renters’ Rights Bill’s final details and implementation timelines, as these are still subject to change.
By taking these steps now, London landlords can confidently navigate the evolving regulatory landscape, ensuring their properties remain desirable, safe, and fully compliant for years to come.
