One in Five Private Rented Homes in England Could Soon Be Illegal

New government proposals could see more than a million privately rented homes in England banned from the market unless they meet stricter quality standards.

According to new analysis by Inventory Base, 21% of private rental properties currently fail to meet the Decent Homes Standard (DHS). If planned reforms under the Renters’ Rights Bill (RRB) go ahead, these homes would require significant upgrades to remain legally rentable.

What is the Decent Homes Standard?

The DHS is a government benchmark for housing conditions, designed to ensure properties are safe, in good repair and have modern facilities. Currently, it only applies to social housing, such as council-owned homes and those managed by housing associations.

The proposed RRB would expand the DHS to include the private rented sector for the first time, bringing millions of additional homes under its scope.

What the Reforms Mean for Landlords

The government is currently consulting on a reformed DHS that would apply to both social and private rentals. The consultation closes in September, with deadlines for compliance proposed for 2035 or 2037.

Alongside this, new minimum energy efficiency standards are due to come into force for all rental properties by 2030. Combined, these changes will require landlords to invest heavily in improvements over the next decade.

Inventory Base’s analysis highlights the scale of the challenge:

• 3.78 million homes in England fall below the DHS (14.9% of all housing).
• In social housing, 10.3% of properties remain non-compliant despite the standard being in place since 2006.
• In the private rented sector alone, 21% of homes — around 1.027 million properties — would fail to meet the proposed rules.

A Potential Shake-Up for the Rental Sector

Sián Hemming-Metcalfe, operations director at Inventory Base, describes the RRB as “one of the most disruptive overhauls of England’s rental sector in a generation”.

With other reforms on the table — including the abolition of fixed-term Assured Shorthold Tenancies (ASTs), the end of no-fault evictions, and new rules on pets — landlords will face mounting pressure to adapt.

Without financial support or clear guidance, there is concern that many landlords could sell up rather than invest in costly upgrades, reducing rental supply and putting further pressure on tenants.

Time to Act

Although the potential compliance deadlines are over a decade away, experts warn that waiting until the last minute could be costly. Early property inspections, energy efficiency assessments and planned maintenance can help spread costs over time and prevent a sudden financial hit.

The consultation period is an opportunity for landlords, agents and industry bodies to have their say — and for the government to put support measures in place.

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