Government warns landlords could leave PRS over Awaab’s Law costs
9:00 AM, 12th October 2026, 1 week ago
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The government’s own impact assessment on Awaab’s Law admits that extending the law to the private rented sector could have a financial impact on landlords and cause some to leave the market.
The government has launched a consultation on extending Awaab’s Law to the private rented sector (PRS), alongside an impact assessment. It is seeking views on how the rules should work and when they should come into force.
The government is seeking views on extending Awaab’s Law to the private rented sector (PRS), including how the rules should work and when they should come into force.
Landlords may decide to leave
In its impact assessment, the government estimates the changes will cost businesses £422.4 million in net present value, with an equivalent annual net direct cost to business of £42.2 million.
The assessment estimates an average cost of £8.17 per property per year, ranging from £5.64 to £10.69. However, landlords could face additional costs from having to carry out repairs more quickly.
The government appears to anticipate that extending Awaab’s Law could drive landlords providing poorer-quality accommodation out of the private rented sector, with their properties potentially being taken over by professional landlords.
The impact assessment said: “The main costs are expected to fall on private landlords and owners of licensed accommodation.
“They include landlords/licensors familiarising themselves with the new requirements, fixing properties quicker so they are compliant with the new requirements, and communicating with tenants about repairs.
“This equates to a cost to landlords of £8.17 per property per year (ranging from £5.64 to £10.69) This does not account for any pass through of landlord costs to tenants. Landlords may, in some instances, attempt to pass through some of the costs of the regulation to tenants.
“The extent to which this will happen is dependent on market conditions and housing affordability, however at an aggregate level we do not expect 100% cost pass-through.
“Alternatively, landlords may decide to leave the sector as a result of increased costs. However, we think the landlords most affected by the new requirements are those offering the poorest-quality accommodation.”
“Their potential exit from the market could create opportunities for more professional landlords to enter or expand, thereby improving overall standards in the sector.”
Power imbalance between landlords and tenants
The government claims intervention through Awaab’s Law is needed to address what it describes as a power imbalance between landlords and tenants.
The impact assessment said: “While the majority of landlords aim to act responsibly, market forces do not provide the right incentives to discourage landlords and licensors from providing low-quality homes. Therefore, there is a clear need for government intervention.
“There is unequal information between landlords, tenants and letting agents. This is because landlords typically possess more information about a property than a tenant. Tenants may not be aware of the hazards posed by a property before moving in, nor do they know in advance how landlords or agents will respond when problems arise. This means tenants are not always able to make an informed decision about whether to move into the property and the level of rent they are willing to pay.”
The impact assessment adds: “This is exacerbated by the power imbalance between landlords and tenants. Wider reforms to the PRS, including the abolition of ‘no-fault’ section 21 evictions and the introduction of a new Ombudsman, will help tenants to demand action from their landlords on issues such as damp and mould without the fear of retaliatory evictions or unfair rent increases. However, there are fewer properties being marketed than pre-pandemic, and there are still, on average, 5.6 enquiries per rental property.
“This reduced competition among landlords and increased competition between tenants limits tenants’ bargaining power and their ability to push for home improvements.”
14 comments on this article
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Member Since January 2024 - Comments: 22
10:43 AM, 12th October 2026, About 1 week ago
The general trend is anything that a Landlord does (or fails to do) is criminal. Anything the tenant does or fails to do (like paying rents on time) is civil.
Is this the best sector to deploy capital?
Member Since September 2018 - Comments: 3759 - Articles: 5
11:29 AM, 12th October 2026, About 1 week ago
holy hell. Anything else you want to lump on the PRS???
About to fill in the consultation and vent. The biggest issue I have here is they clearly want to make the same legislation apply differently in the PRS than in the social sector.
Institutionalised discrimination between tenants is clearly acceptable along with overbearing persecution of the PRS landlord it seems.
At what point does this assault on the private landlords and their inability to run their business not fall under Human Rights??
Property Rights and Business Ownership
• Right to Property: Under Article 1 of Protocol No. 1 of the European Convention on Human Rights (ECHR) — incorporated into UK law via the Human Rights Act 1998 — everyone has the right to the peaceful enjoyment of their possessions, including land, money, shares, and business enterprises.
• State Interference: The government cannot arbitrarily seize or destroy private property, but the state can legally interfere with property or business operations when it serves a clear public interest (such as taxation, planning laws, health and safety regulations, or environmental protection) and follows a fair legal process.
• Business Operations: Running a business is not free from government rules. Business owners must comply with statutory requirements, such as obtaining local council planning permissions, paying business rates, or adhering to employment and safety laws.
Protection Against “State Prosecution”
• Lawful Regulation vs. Unlawful Prosecution: You cannot be criminally prosecuted or penalized by the state without a clear, pre-existing legal basis (Article 7 of the ECHR: no punishment without law).
• Regulatory Compliance: Operating a business or owning property means you are subject to civil and criminal laws. If you break tax laws, build without required planning consent, or ignore commercial regulations, the state can prosecute or fine you. However, any enforcement action must be proportionate, non-discriminatory, and carried out through due process.
Member Since May 2014 - Comments: 170
12:35 PM, 12th October 2026, About 1 week ago
It`s entirely deliberate by previous & current HMG`s. There has been a carefully planned attack on the PRS for 15 years gradually increasing the bureaucracy, compliance & financial pressure to diminish the presence of `small` landlords in the PRS. Corporate landlords, banks & government are determined to control property in the UK, land & farms next, cashless society & compulsory ID`s.
It`s all about state control..I`ll spell it out..communism.
Member Since May 2017 - Comments: 842
1:18 PM, 12th October 2026, About 1 week ago
Reply to the comment left by John MacAlevey at 12/10/2026 – 12:35
Also known as Fabianism
Member Since April 2018 - Comments: 649
1:36 PM, 12th October 2026, About 1 week ago
If you read the governments survey you will realise it is not a survey , they have already made up their mind. Not worth completing this lengthy survey unless you wish to spit venom at them.
When implemented this will heap endless time and costs on to landlords with no doubt massive fines, all to be recorded on the landlord’s database.
Member Since September 2018 - Comments: 3759 - Articles: 5
2:06 PM, 12th October 2026, About 1 week ago
Reply to the comment left by David at 12/10/2026 – 13:36
Agree – BUT all comments are at least logged and they have to be accounted for in the replies received stats etc so EVERY SINGLE LL SHOULD REPLY ASAP.
Member Since November 2025 - Comments: 1
2:48 PM, 12th October 2026, About 1 week ago
I’ve done the survey. It didn’t take long although I would have entered longer comments if the system had allowed. I was very clear about my views on the attack on PRS landlords and the negative effect this is and will continue to have on tenants.
Member Since April 2018 - Comments: 649
3:13 PM, 12th October 2026, About 1 week ago
Reply to the comment left by Reluctant Landlord at 12/10/2026 – 14:06
This is a foregone conclusion, it’s just a matter of whether for example a landlord has 1 day or 3 days to complete work that an inspector says needs doing and who will these inspector’s actually be.
I would then be hard pushed to find a tradesman to even attend within the time limits they are proposing, even if the inspector says 1 floorboard is a millimetre too high and a trip hazard, so bang another big fine.
Yes you can complete the survey but there is no box to tick to say this is a bad idea and do you really think they will take any notice of landlord’s comments, in fact they might even bin those.
Member Since November 2019 - Comments: 215
7:57 PM, 12th October 2026, About 1 week ago
Has anyone had a Damp Proof Man recently or in the past. If so it the report would almost certainly resulted in a report recommending repairs costing Thousands.
(Remember Chemical Injections and 25 year worthless guarantees)
Member Since April 2018 - Comments: 649
8:52 PM, 12th October 2026, About 1 week ago
Reply to the comment left by Northernpleb at 12/10/2026 – 19:57
Lots of expensive suggestions on a rental from such a specialist survey, but it’s easy to spend other people’s money isn’t it. No insurance backed guarantees. I have resisted cavity fill in my own house for 65 years with negligible damp issues and I don’t intend to start now.