More than a million PRS homes could be illegal under the Decent Homes Standard

More than one in five privately rented properties in England, which is around 1.027 million homes, could be classified as illegal under the Decent Homes Standard, a study reveals.

According to Inventory Base, its analysis, based on government figures, reveals that these homes fail to meet the Decent Homes Standard (DHS), which is part of the Renters’ Rights Bill.

The DHS outlines minimum housing conditions, ensuring properties are safe, comfortable and energy efficient.

The Bill aims to apply these standards to private rented homes, with compliance deadlines set for 2035 or 2037.

This extended timeline is designed to allow landlords time to upgrade properties, including meeting new energy efficiency rules by 2030.

Landlord sell-off and non-compliance

The firm’s operations director, Sián Hemming-Metcalfe, said: “The Renters’ Rights Bill represents one of the most disruptive overhauls of England’s rental sector in a generation.

“Landlords will face enormous pressure navigating the transition, from the end of fixed-term ASTs and no-fault evictions to new rules on pets and a sweeping expansion of the Decent Homes Standard.

“If the DHS proposal becomes law, over a million privately rented homes will require significant upgrades.”

She added: “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.”

Logistical issues for landlords

Inventory Base’s findings also highlight a significant challenge: 15% of all residential properties in England, approximately 3.78 million homes, do not meet the DHS.

In the social housing sector, where the standard has been enforced since 2006, 10.3% of properties, or 428,000 homes, still fall short.

For private rentals, the figure is much higher with 21% of properties below the required level, compared to 15.8% for all private homes.

The passing of the Bill would place substantial financial and logistical demands on landlords to upgrade more than one million properties.

Landlords and agents need clarity

Ms Hemming-Metcalfe said: “Agents and landlords need clarity now. They must assess where they stand, what actions will be required by 2035 or 2037, and how tools like property inspections can close the gap between today’s standards and tomorrow’s expectations.

“While consultation is important, deferring implementation until 2035 or later isn’t strategic – it’s negligent.”

She adds: “The delay legitimises inaction and leaves millions of tenants stuck in substandard homes for another decade; despite the fact we already have the data and tools to start driving progress.

“What’s missing is the urgency – and the investment – to build the infrastructure needed to scale change.”