Most landlords reading about the Renters' Rights Act 2025 spend their energy on the headline tenancy reforms (Section 21 going, periodic tenancies as default, the new Section 13 rent-rise procedure). The property-condition arm of the Act, Part 3 sections 100 and 101 extending the Decent Homes Standard to the private rented sector, gets less coverage and is moving more slowly. As of 22 May 2026 the framework provisions are live (in force from 27 December 2025 under SI 2025/1354); the substantive standard (the regulations the Secretary of State must make defining the Type 1 and Type 2 requirements) is not yet in force. This page maps what is operative today, what is scheduled, what the four limbs of the standard will require when the further commencement order lands, and how the remediation spend hits the rental P&L.
Where the related enforcement and tax-treatment threads sit elsewhere on the site: civil-penalty notices and the First-Tier Tribunal appeal route are covered in our civil penalty and banning order defence guide; the PRS Database and Ombudsman registration mechanics are covered in our PRS Database registration page; the cap-versus-revenue split that drives deductibility of HMO compliance spend (which carries across to Decent Homes spend) is covered in our HMO licensing fees deductibility guide.
The Statutory Framework: What is in Force on 22 May 2026
Part 3 of the Renters' Rights Act 2025 amends the Housing Act 2004 to introduce a Decent Homes Standard for qualifying residential premises in England. The amendments are structured as a partial overlay onto the existing HHSRS enforcement framework, not a replacement of it, which means the property-condition floor for private landlords has two operative regimes after commencement: HHSRS (in force since 2006 and continuing) plus Decent Homes (framework live now, substantive standard pending).
SI 2025/1354 (the Commencement No. 1 Regulations 2025) brought the following into force on 27 December 2025:
- Sections 63 (residential landlord and residential tenancy definitions), 99 (marketing definition), and 100(1), (5) and (6) of the RRA 2025, sufficient to insert the new section 2B definition of qualifying residential premises into the Housing Act 2004.
- Paragraphs 1 and 9(1) of Schedule 4 to the RRA 2025 (linked-purpose preliminary amendments).
- Paragraph 9(3) of Schedule 4, inserting subsection (1A) into Housing Act 2004 section 9 (excluding subsection (1A)(a)).
What is not yet in force is the substantive Decent Homes Standard itself. The regulation-making power under the new sections empowers the Secretary of State to make regulations defining the Type 1 requirements (mandatory enforcement, parallel to Category 1 hazards) and Type 2 requirements (discretionary enforcement, parallel to Category 2 hazards). Those regulations are not yet made; government policy statements anticipate commencement before April 2027, but no statutory instrument appointing the day has been made as of 22 May 2026. Until those regulations are in force, the operative property-condition regime for the PRS continues to be HHSRS under Part 1 of the Housing Act 2004 (in force since 2006), supplemented by the financial-penalty extension in the new section 6A and the procedural amendments in paragraphs 35 to 37 of Schedule 4 to the RRA 2025.
The Four Limbs of the Decent Homes Standard
The standard, in its 2006 social-housing version that the PRS extension will broadly track, requires a property to pass four tests. The detailed pass-fail criteria for the PRS test will be set by the substantive regulations when made; the four-limb structure itself is durable and is the planning framework landlords should adopt now.
| Limb | Test (working description) | Underlying authority |
|---|---|---|
| 1. Statutory minimum | The property is free of Category 1 hazards under HHSRS | Part 1 Housing Act 2004 + Housing Health and Safety Rating System (England) Regulations 2005 |
| 2. Reasonable state of repair | Building components are not old and in poor condition. Test is age-and-condition combined | Section 100 RRA 2025, substantive Decent Homes Regulations (pending) |
| 3. Reasonably modern facilities and services | Kitchen, bathroom, layout, noise insulation, and common parts meet a working modernity threshold | Section 100 RRA 2025, substantive Decent Homes Regulations (pending) |
| 4. Reasonable degree of thermal comfort | Effective insulation and an efficient heating system | Section 100 RRA 2025, substantive Decent Homes Regulations (pending) |
Limb 1 in detail: HHSRS Category 1 hazard freedom
The HHSRS regulations list 29 categories of potential hazard. The most commonly cited in PRS enforcement decisions are damp and mould growth, excess cold, falls on stairs and between levels, fire safety, electrical hazards, food safety, personal hygiene, and entry by intruders. The assessor scores each potential hazard using the operating guidance methodology; a score above the Category 1 threshold triggers a mandatory enforcement duty under section 5 of the Housing Act 2004. A property with even one Category 1 hazard fails the statutory minimum limb of Decent Homes by definition.
The practical compliance moves for limb 1 are well-trodden: address visible damp and mould (root-cause investigation, not just paint over), install or maintain working smoke and carbon monoxide alarms (mandatory since the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 in any case), keep gas appliances in date (annual Gas Safety Record under the Gas Safety (Installation and Use) Regulations 1998), keep electrical installations in date (Electrical Installation Condition Report every 5 years under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020), and address fall hazards on stairs (handrails, guarding, lighting). These are not new obligations; they are the existing HHSRS floor that limb 1 of Decent Homes will codify into a single pass-fail test.
Limb 2 in detail: reasonable state of repair
The 2006 social-housing version of the standard fails a property on repair grounds if (a) one or more key building components (external walls, structure, roof, chimneys, windows and external doors, kitchen, bathroom, electrical system, heating system) are old and in poor condition, or (b) two or more other building components are old and in poor condition. 'Old' is defined by component-specific age thresholds; 'poor condition' is defined by visible defects requiring replacement or substantial repair.
The PRS test will be calibrated by the substantive regulations and may differ in detail; the operative planning move for landlords today is to maintain a component-by-component condition log for each property and budget the replacement cycle accordingly. A roof at year 45 of a 50-year design life is not yet in poor condition; a roof at year 55 with visible slipped or missing tiles and inadequate flashings is. The audit trail (date of last inspection, photographs, contractor reports) is what will support a 'reasonable state of repair' defence at a future inspection.
Limb 3 in detail: reasonably modern facilities and services
The 2006 standard fails a property on modern facilities grounds if it lacks three or more of: a kitchen of an adequate layout and size, a kitchen under 20 years old, an appropriately located bathroom and WC, a bathroom under 30 years old, adequate noise insulation, and adequate size and layout of common parts (for HMOs and flatted blocks). 'Adequate layout and size' for a kitchen and bathroom is defined by reference to working space, storage, and the relationship between sanitary fittings.
The compliance move for landlords with older properties is the void-period refit. Kitchens and bathrooms that have not been refurbished since the early 2000s should be on the planning list for the next vacancy; the spend can be staged to align with rent-period planning and capital-allowances strategy. The capital-versus-revenue split (covered below) matters here: a like-for-like replacement of worn components is revenue and deductible against this year's rental income; a full refit with upgraded specification is capital and adds to the base cost for CGT on eventual sale.
Limb 4 in detail: reasonable degree of thermal comfort
The 2006 standard tests effective insulation and an efficient heating system. An EPC band C or above is a strong indicator of compliance; an EPC band E or below would fail without compensating evidence. The Government's separate PRS minimum EPC C policy (originally floated for 2025, repeatedly delayed) sits alongside but separately from the Decent Homes thermal comfort limb; landlords should treat EPC C as a planning floor for thermal comfort, not a guaranteed pass on the eventual Decent Homes test.
Practical compliance moves for older properties: loft insulation (cheap, high-impact, revenue-deductible), cavity wall insulation where the wall construction allows, hot water cylinder jacket, condensing boiler upgrade (capital, adds to base cost, but reduces running costs and EPC rating), draught-proofing on doors and windows. For pre-1919 solid-wall properties, internal or external solid-wall insulation is a substantial capital project that may or may not be commercially worthwhile against the rent profile; the planning question is whether to retrofit before the substantive regulations bite or to dispose of the property.
The Compliance Checklist (Working Version Pending the Substantive Regulations)
The checklist below bridges today's HHSRS regime to the anticipated four-limb Decent Homes test. Items in the first half are already mandatory under existing legislation; items in the second half are anticipated based on the 2006 social-housing version and should be planned for but not yet treated as legally binding.
Already mandatory under existing law
- Annual Gas Safety Record by a Gas Safe registered engineer (Gas Safety (Installation and Use) Regulations 1998).
- 5-yearly Electrical Installation Condition Report by a competent electrician (ESS PRS Regulations 2020).
- Valid Energy Performance Certificate, currently EPC band E or above for new tenancies and renewals (MEES Regulations 2015).
- Smoke alarm on every floor and carbon monoxide alarm in every room with a fixed combustion appliance (SCMA Regulations 2022).
- Free of HHSRS Category 1 hazards (Housing Act 2004 Part 1).
- Deposit protected in an authorised scheme within 30 days of receipt (Housing Act 2004 Part 6).
- Right to Rent checks completed on all adult occupants (Immigration Act 2014).
- HMO licence in force where the property is a Mandatory HMO (5+ occupants forming 2+ households) or falls within an Additional or Selective Licensing scheme.
- Section 21 not served on or after 1 May 2026 (abolished by RRA 2025); possession via reformed Section 8 only.
- From 27 December 2025: property registered as 'qualifying residential premises' under the new Housing Act 2004 section 2B framework for forthcoming Decent Homes enforcement purposes.
Anticipated under the forthcoming Decent Homes Regulations
- Kitchen under 20 years old in good condition, or older with documented good condition and adequate layout.
- Bathroom under 30 years old in good condition, or older with documented good condition.
- Effective central heating system; an EPC band C as planning floor, with full thermal-comfort assessment by the Decent Homes inspection methodology.
- Loft insulation to current Building Regulations minimum.
- Cavity wall insulation where the construction allows.
- Adequate noise insulation between adjoining properties (relevant for terraced and semi-detached).
- No old and in poor condition status on any key building component (roof, walls, windows, external doors, heating system, kitchen, bathroom, electrical system).
- For HMOs and flatted blocks, adequate size and condition of common parts.
- Component-by-component condition log with date-stamped photographs and contractor reports for the audit trail.
- Standing arrangement with a competent property surveyor for periodic Decent Homes pre-inspection (recommended every 5 years, more frequently for older stock).
What Happens When the Council Inspects: Enforcement Powers Today
The local housing authority's enforcement options after a property condition inspection are set out in Part 1 of the Housing Act 2004. The 2004 Act options operate today and will continue to operate after the substantive Decent Homes regulations commence; the Decent Homes regulations add the new financial-penalty layer under section 6A and the new mandatory-versus-discretionary split under amended sections 5 and 7. The table below sets out the current toolkit.
| Enforcement option | Section | What it does |
|---|---|---|
| Improvement Notice | HA 2004 ss.11 (Cat 1, mandatory) / s.12 (Cat 2, discretionary) | Requires specified works within a defined period; breach is an offence and a Civil Penalty trigger |
| Prohibition Order | HA 2004 ss.20 (Cat 1, mandatory) / s.21 (Cat 2, discretionary) | Restricts or prohibits the use of all or part of the premises |
| Hazard Awareness Notice | HA 2004 ss.28 (Cat 1) / s.29 (Cat 2) | Formal record of the hazard; no compulsion but informs subsequent enforcement |
| Emergency Remedial Action | HA 2004 s.40 | Council carries out the works and recovers the cost from the landlord |
| Emergency Prohibition Order | HA 2004 s.43 | Immediate prohibition where the hazard presents an imminent risk |
| Demolition Order / Clearance Area | HA 2004 s.46 / s.47 + HA 1985 Part 9 | Rare; reserved for properties beyond economic repair |
| Civil Penalty (alternative to prosecution) | HA 2004 s.249A (Housing and Planning Act 2016) | Up to £30,000 for breach of Improvement Notice or licensing offence; rises to £40,000 under RRA 2025 s.15 for housing offences from 1 May 2026 |
| New: Type 1 Requirement Penalty | HA 2004 s.6A (RRA 2025 Sch 4 para 6, in force 27 Dec 2025 framework) | Up to £7,000 for breach of a Type 1 requirement on qualifying residential premises; full operation awaits substantive regulations |
The procedural safeguards for each enforcement action follow the same shape as the civil-penalty regime covered in our civil penalty defence guide: notice of intent, 28-day representations window, final notice, 28-day appeal to the First-Tier Tribunal Property Chamber. Defence on procedural grounds (defective notice, inadequate reasons, breach of the authority's published policy) succeeds more reliably than substantive defence on the facts, which is why the representations stage is the moment to put the contemporaneous evidence on the file.
The Rent Repayment Order Risk (Live from 1 May 2026 in Anticipated Scope)
Rent Repayment Orders under sections 40 to 52 of the Housing and Planning Act 2016 require the landlord to repay up to 12 months of rent to the tenant (or to the local authority where rent was paid by housing benefit or Universal Credit), on application to the First-Tier Tribunal Property Chamber within 12 months of the offence. The RRO route was extended by the RRA 2025 to cover new housing offences from 1 May 2026, and is anticipated to extend to Type 1 Decent Homes breaches once the substantive standard regulations commence.
The pre-1-May-2026 government guidance at gov.uk Rent Repayment Orders explicitly confines itself to offences committed before that date; the post-1-May regime is being administered by reference to the RRA 2025 statutory framework. The tax treatment of an RRO repayment is the reversal of the original rental receipt rather than a fresh expense: the landlord adjusts the original receipt in the year the order is made, which produces a net deductible position only where the repayment exceeds the rent received in the original year. An RRO can run in parallel with a Civil Penalty on the same facts; one does not extinguish the other.
Tax Treatment of Decent Homes Compliance Spend
Compliance spend on Decent Homes works splits between revenue and capital on the standard ITTOIA 2005 s.272 boundary (the trading-profit principles imported into the property business computation). The split matters because revenue spend reduces this year's rental tax bill at the landlord's marginal rate, while capital spend adds to the property's base cost for CGT and reduces the gain on eventual sale. For a higher-rate landlord disposing of the property in 10 years, the revenue route is worth 40 pence in the pound today versus a CGT saving of 24 pence in the pound on disposal; the cash-flow effect favours revenue treatment where the cap-rev boundary genuinely allows it.
HMRC's Property Income Manual at PIM2030 sets out the cap-rev boundary for property businesses, with the like-for-like replacement test at the centre. The PIM concession on double glazing (replacement of single-glazed windows with double-glazed equivalent is treated as revenue because double glazing is the modern equivalent) is a useful benchmark: where the works restore the property to its previous functional state using current-standard equivalents of the original components, treat as revenue. Where the works add a new component or upgrade the property's specification, treat as capital. Where a single Improvement Notice mandates a mix, apportion and document.
The financial penalties themselves (the s.6A penalty, the s.249A penalty, the new RRA 2025 s.15 penalty) are not deductible against rental income: HMRC's BIM38500 position is that regulatory fines are not laid out wholly and exclusively for trade or business purposes. The underlying remediation works remain deductible to the extent they are revenue in character. Professional fees (surveyor reports, legal advice on representations, accountancy fees on the cap-rev apportionment, ICAEW-qualified tax review) are deductible where they are revenue, on the same basis covered in our HMO licensing fees deductibility guide. For pre-letting Decent Homes works on a newly-acquired property, the pre-trading expense rules in ITTOIA 2005 s.57 apply: revenue costs incurred up to 7 years before commencement of letting are deductible in the first year of letting, on the basis explored in our pre-letting expenses guide.
Worked Example: 1920s Three-Bedroom Terrace, Mid-Tier Northern City
An anonymised illustration based on a typical mid-portfolio fact pattern. A landlord owns a 1920s three-bedroom mid-terrace with the following current state: EPC band D, single-glazed sash windows (original, peeling paint), kitchen refurbished in 2003 with serviceable units and a 10-year-old combi boiler, bathroom refurbished in 2008, loft insulation 100mm (below current Building Regulations minimum of 270mm), no cavity wall insulation (solid brick construction).
HHSRS assessment today: no Category 1 hazards (no damp, no mould, no fall hazards, gas and electrical certificates current). Passes limb 1 of Decent Homes.
Anticipated Decent Homes assessment under the forthcoming regulations:
- Limb 1 (HHSRS): pass.
- Limb 2 (repair): windows at year 100+ in 'old and poor condition'; one key component fails. Boiler at year 10 still within design life. Other components in reasonable condition. Marginal pass; depends on how the regulations score the windows.
- Limb 3 (modern facilities): kitchen at year 23 (over the 20-year threshold), bathroom at year 18 (under the 30-year threshold). Marginal; kitchen condition will matter. Likely conditional pass if kitchen is well-maintained, likely conditional fail if visibly worn.
- Limb 4 (thermal comfort): EPC D, no cavity wall insulation, sub-standard loft insulation. Likely fail until insulation upgrade.
Planned works for void-period refit:
- Replace single-glazed sash windows with double-glazed sash replicas (in a conservation area, may require like-for-style replacement). Spend £18,000. Tax treatment: per PIM2030 double glazing concession, revenue. Full deduction against this year's rental income.
- Top up loft insulation from 100mm to 270mm. Spend £600. Revenue. Full deduction.
- Internal solid-wall insulation to two key external walls (lounge and main bedroom). Spend £5,500. Capital (new component, not replacement). Adds to base cost for CGT.
- Replace kitchen units with similar mid-range specification (units, worktop, sink, tap, no layout change). Spend £8,000. Revenue (like-for-like replacement). Full deduction.
- Boiler service, no replacement. Spend £120. Revenue. Full deduction.
Total spend £32,220. Revenue deductible this year £26,720. Capital added to base cost £5,500. At higher-rate income tax (40%), the revenue deduction is worth £10,688 in immediate tax relief. The capital element will save 24% (residential CGT rate from April 2024) on the eventual gain, worth £1,320 on the disposal. Total tax relief lifecycle £12,008 against a £32,220 spend, with the property now likely to pass all four limbs of the anticipated Decent Homes test and EPC band C.
Timeline: What to Do Now, What to Do When the Substantive Regulations Land
Concrete planning moves for the 22 May 2026 to 31 March 2027 window (the most likely period before the substantive Decent Homes regulations commence):
- Now to 30 September 2026: commission a portfolio-level condition audit. Identify which properties already pass the anticipated four-limb test and which will need staged investment. Build a contractor pipeline; competent surveyors and refurbishment contractors will become scarce as the commencement date approaches.
- 1 October 2026 to 31 March 2027: execute the first wave of refits, prioritising properties with the largest gap to the four-limb pass and properties scheduled for void periods. Apportion cap-rev properly for each project; keep the works schedule, photographs, and contractor invoices for the audit trail.
- On commencement of the substantive Decent Homes Regulations (anticipated, not before April 2027): re-verify the operative pass-fail criteria against the planning assumptions above; the regulations may differ from the 2006 social-housing version in calibration. Update the compliance checklist accordingly.
- On commencement of the PRS Database (anticipated before April 2027): register every property in the portfolio. Compliance status (gas safety, EICR, EPC, Decent Homes status once substantive standard live) will be visible to local authorities at portfolio level; non-registration carries a possession bar under section 90 of the RRA 2025.
The structural point: the property-condition obligations on PRS landlords are increasing in calibration and visibility through a phased commencement cycle, and the financial-penalty regime is moving from a £30,000 ceiling under the 2016 Act framework to a £40,000 ceiling under the RRA 2025 framework, plus the £7,000 section 6A penalty layered on top for Type 1 requirement breaches. The compliance cost is real but the planning window is open; the landlords who use this transitional period to stage their investment will spend less and face less enforcement risk than the landlords who wait for the substantive regulations to bite.