Government calls on landlords to upgrade homes ahead of Decent Homes Standard

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Government calls on landlords to upgrade homes ahead of Decent Homes Standard

The government has urged landlords to begin upgrading their properties before the Decent Homes Standard comes into force.

In its Renters’ Rights Act implementation roadmap, the government claims that while the Decent Homes Standard is proposed to come into force in 2035 or 2037, landlords “should commence works earlier”.

The government has announced it will introduce a legal duty on landlords to ensure their properties meet the Decent Homes Standard, and councils will have the power to fine landlords £7,000 if they fail to meet the standard.

Landlords should commence works earlier wherever feasible

The government is currently considering consultation responses and has confirmed it will announce details of the standard and timelines as soon as possible.

As previously reported on Property118, the legislation appears to focus on three key areas when evaluating properties:

• The condition of the premises
• Provisions for tenant safety and comfort
• The ability to maintain an appropriate temperature

In its Renters’ Rights Act roadmap, the government urge landlords to start preparing now.

The guidance says: “While we are proposing a long-term deadline, our expectation is that landlords should commence works earlier wherever feasible, remaining mindful of the effect on tenants.

“As part of the pathway to applying the Decent Homes Standard to the private rented sector, we will implement the review of the Housing Health and Safety Rating System (HHSRS).”

Local councils will have the power to issue civil penalties of up to £7,000

The government also warn landlords they could face up to a £7,000 fine if they fail the Decent Homes Standard.

The government guidance says: “Landlords who fail to comply with enforcement action can be subject to a civil penalty or criminal prosecution. If such an offence is committed, the tenant or local council can also apply to the First-tier Tribunal for a rent repayment order.

“We will be introducing a legal duty on landlords to ensure their property meets the Decent Homes Standard. For landlords who fail to take reasonably practicable steps to keep their properties free of serious hazards, local councils will also have a new power to issue civil penalties of up to £7,000. This will incentivise all landlords to proactively manage and maintain the safety and decency of their properties.”

The fines come alongside the government’s release of new civil penalty tables under the Renters’ Rights Act, which include a £6,000 fine for discrimination against tenants receiving benefits or those with children during the lettings process.

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Buy-To-Let Mortgages for First-Time Landlords

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Property118

Buy-To-Let Mortgages for First-Time Landlords

Getting started in property investment can feel daunting, particularly in today’s mortgage market. First-time landlords face stricter criteria, larger deposit requirements and higher scrutiny from lenders compared with experienced investors. But with preparation and the right guidance, it is still possible to secure competitive finance and start building a rental portfolio in 2025.

Who Counts as a First-Time Landlord?

A first-time landlord is someone buying their first rental property. Some lenders also class you as a first-time landlord if you have not previously let property, even if you own your own home. A smaller number may also combine this with “first-time buyer” criteria, where you do not yet own any property at all. These factors can restrict product choice.

What Lenders Look For

Most lenders want reassurance that first-time landlords can manage the responsibilities of letting property. Typical requirements include:

• Larger deposits – usually 25% or more of the property value.
• Minimum income – often £25,000+ from employment or self-employment, to demonstrate financial stability.
• Clean credit history – no recent defaults, CCJs or missed payments.
• Rental income affordability – the property must meet 125%–145% coverage of mortgage interest at a stress-tested rate.

Deposit and Loan-to-Value Rules

While experienced landlords may occasionally access products up to 80% LTV, most first-time landlord mortgages are capped at 75% LTV. This means a £200,000 property would require a deposit of at least £50,000, plus stamp duty, legal fees and a contingency fund.

Worked Example: Affordability Test for a First-Time Landlord

Scenario: Property value £180,000. Loan £135,000 (75% LTV). Product rate 5.5% fixed. Annual interest £7,425 (£618.75 monthly).

At 145% coverage: Rent must be at least £10,766 per year (£897 per month).
At 125% coverage: Rent must be at least £9,281 per year (£773 per month).

If rent is £850 per month, the application would pass at 125% but fail at 145%. This shows the importance of choosing the right lender.

Common Pitfalls for New Landlords

• Overestimating rental income – valuers may take a cautious view, reducing affordability.
• Underestimating costs – repairs, voids, management fees and compliance costs all eat into returns.
• Choosing the wrong property – low-yield flats in city centres often fail affordability tests for first-time landlords.
• Lack of preparation – missing payslips, ID documents or tenancy projections delay applications.

Tips for First-Time Landlords Applying in 2025

• Save a deposit of at least 25% and budget extra for costs.
• Choose a property with strong rental yield to make affordability easier.
• Keep your credit file clean and limit personal debt.
• Consider using a broker with access to lenders open to first-time landlords.
• Have all documents ready – proof of income, bank statements and ID.

Case Study: A Successful First Application

Scenario: A first-time landlord earning £40,000 a year in employment applied for a buy-to-let mortgage on a two-bed terrace at £150,000.

Solution: With a £40,000 deposit and £110,000 loan, the lender applied a 125% coverage rule. Rent of £750 per month passed the stress test comfortably.

Outcome: The landlord secured a five-year fixed mortgage, gaining stable payments and successfully entering the rental market.

Final Thoughts

First-time landlords face stricter hurdles, but competitive mortgages are still available in 2025. The key is preparation: strong deposits, realistic rental assumptions and clean financial records. With the right property and lender match, becoming a landlord is achievable even in a tougher mortgage market.

Speak to Our Sponsor

Our sponsor works daily with first-time landlords, helping them prepare applications, choose suitable lenders and enter the buy-to-let market with confidence.

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Publication date: Monday, 15 December 2025

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Housing market shows signs of stability as rental arrears drop

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Property118

Housing market shows signs of stability as rental arrears drop

Rental arrears are at their lowest level since 2022 as rent prices remain largely unchanged, according to a new report.

Propertymark’s Housing Insight report reveals that affordability is improving in parts of the rental market as tenant demand has eased.

Propertymark member agents also report that, while rental prices are fluctuating in some areas, there is a degree of stability, with 52% of agents saying rents have generally remained static.

Growing stability and resilience within the rental sector

According to the report, the magnitude of member agents reporting problems with arrears positively decreased to 1.7%, the lowest since 2022.

More than half of Propertymark agents (52%) reported rents have remained generally static and 30% have reported an overall fall.

The report also reveals a dip in tenant demand with the average number of registrations per member branch dropped significantly to an average of 61.

Nathan Emerson, chief executive of Propertymark, said the fall in rental arrears shows the rental market is strengthening.

He said: “On the lettings side, it is particularly positive to see arrears reported at their lowest level since October 2022. This signals growing stability and resilience within the rental sector, even against a backdrop of long-term supply challenges.

“With more than half of agents reporting static rents and nearly a third observing modest declines, the data suggests the rental market may be beginning to find a more sustainable balance. Overall, these trends point to a market that is settling, strengthening, and gradually moving into a more predictable rhythm, which is welcome news for agents, landlords, and consumers alike.”

Overall direction is encouraging

Phil Spencer, founder of Move iQ, said the rental arrears drop is welcome news.

He said: “For renters, the reduction in arrears and the fact that most agents are seeing rents remain static, or even fall, will be particularly welcome.

“After several years of rapid increases, this shift offers a bit of breathing space and suggests affordability is improving in parts of the market.

“While challenges remain, the overall direction is encouraging. Consumers navigating the market today can do so with a little more confidence, knowing that conditions are stabilising and that opportunities exist for those prepared to act.”

Elsewhere, the report shows that in the residential sales market, the average number of sales agreed per member branch saw a slight increase in October 2025, reaching 7.8, while stock levels also rose, with an average of 45 properties for sale at each branch.

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