Government urges landlords to act on Decent Homes Standard

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Government urges landlords to act on Decent Homes Standard

Landlords are being urged by the government to take action now to get their properties up to the upcoming Decent Homes Standard.

In a written question, Labour MP Sharon Hodgson acknowledged that bringing homes up to standard will take time, but confirmed the direction of travel is clear.

All private and social landlords will be expected to comply with the Decent Homes Standard by 2035.

Reduce illness linked to damp

In a written question, Green Party MP Carla Denyer asked: “Whether the Department of Health has had discussions with the Housing Secretary on the potential impact of the 2035 implementation date for the New Decent Homes Standard on incidence of illness caused by i) damp and mould and ii) other poor conditions in the private rented sector.”

In response, Ms Hodgson said the government has been working to tackle damp and mould in the private rented by introducing Awaab’s law, and landlords should start preparing now to meet the standard.

She said: “The Decent Homes Standard (DHS) is part of the package of government action and investment to support improvements in the quality of rented homes, including implementation of Awaab’s Law, the Renters’ Rights Act, and minimum energy efficiency standards. One aim of these measures is to reduce illness linked to damp, mould, and other housing hazards.

“The new Decent Homes Standard prioritises safety, decency, and warmth. The Department of Health and Social Care’s engagement has focused on the health-related aspects of the Decent Homes Standard.”

Take action now

She adds: “Decisions on the implementation timetable have been led by the Ministry of Housing, Communities and Local Government, and informed by consultation with the sector.

“The government expects landlords to begin taking action now to ensure their properties meet the Decent Homes Standard. We recognise, however, that it will take time to plan and deliver works sustainably.

“The Department of Health and Social Care will work with the Ministry of Housing, Communities and Local Government to produce guidance to support implementation of the Decent Homes Standard.”

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Landlords shifting future purchases towards limited companies

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Property118

Landlords shifting future purchases towards limited companies

A clear shift in future buying behaviour is emerging across the UK private rented sector. According to the Property118 Landlord Sentiment Survey Q1 2026, while most landlords still hold property in their personal names, a growing majority would choose to purchase through a limited company if acquiring today.

Based on 2,380 completed responses, although 61% of landlords currently own personally, more than half indicate a preference for company ownership for any future acquisitions. You can review the full findings here.

The implication is clear: the direction of travel is corporate, even if the present reality is not.

A change driven by experience

This is not a trend driven by new entrants, but by experienced landlords reassessing their approach. Many respondents have built their portfolios over time under a different set of rules. As conditions have changed, so too has their view of how property should be held going forward.

The survey data reflects this shift in thinking. Rather than continuing with legacy structures, landlords are increasingly considering how future acquisitions can be structured more efficiently from the outset.

Why the structure matters

Ownership structure is not just a technical detail, it shapes how a portfolio functions. It influences financing options, tax treatment, profit extraction and long-term planning. As portfolios grow and mature, these factors become more significant.

The growing preference for company ownership suggests that landlords are placing greater emphasis on flexibility and control when making future decisions.

A gap between past and future

Despite this shift in preference, most existing portfolios remain in personal ownership. As highlighted in the Property118 dataset, this creates a disconnect between how landlords would choose to operate today and how they are currently structured. Bridging that gap is not always straightforward. Transferring existing properties into a company can involve tax considerations, financing changes and practical complexity, which means many landlords continue to operate within structures that no longer align with their preferred approach.

What this means for future supply

The shift towards company ownership is likely to influence how new rental stock enters the market. If fewer landlords are buying, and those who do are increasingly using corporate structures, the composition of the sector may gradually change over time. This is not an immediate transformation, but a directional one. Future supply may become more concentrated within corporate ownership, while existing personally held portfolios are gradually reduced or restructured.

A sector evolving in slow motion

The data points towards a sector that is evolving, but not uniformly. New decisions reflect current thinking, while existing portfolios reflect the past. The result is a market that operates across two parallel structures, one established and one emerging.

For now, one conclusion stands out: landlords may not be restructuring what they already own, but they are increasingly changing how they would invest going forward.

A quieter theme emerging from the latest landlord data is not about borrowing, but about what is not being done with existing equity. According to the Property118 Landlord Sentiment Survey Q1 2026, a large proportion of landlords now operate with low loan-to-value ratios or no borrowing at all, indicating substantial levels of equity sitting within portfolios.

Based on 2,380 completed responses, the majority of landlords report loan-to-value ratios below 50%, with many holding properties outright. You can explore the full dataset here.

The implication is clear: significant capital exists within the sector, but much of it is not actively deployed.

Equity without direction

For many landlords, equity has built up gradually over time through capital growth and mortgage repayment. This has created a position of financial strength, but not always a clear plan for what that capital is intended to achieve. In some cases, it simply remains within the properties themselves, without being actively utilised.

This is not necessarily a problem, but it does raise an important question:

If the equity is not being used to support growth, income or wider financial planning, what role is it serving?

From growth to preservation

The shift towards lower leverage suggests a broader change in mindset. Earlier stages of portfolio building often involve higher borrowing levels to accelerate growth. Over time, as portfolios mature, the focus tends to move towards consolidation and risk reduction.

The survey findings reflect this transition.

Many landlords are no longer looking to expand aggressively. Instead, they are holding substantial equity while reassessing their long-term objectives.

Opportunity or inefficiency?

Unused equity can be viewed in two ways. On one hand, it provides security. Lower borrowing reduces financial risk and creates resilience against market fluctuations. On the other, it may represent an opportunity cost.

Capital tied up in property is not easily accessible, and if it is not being actively deployed, it may not be contributing fully to income generation or broader financial planning.

This is where the distinction between holding assets and actively managing them becomes more relevant.

A factor in changing behaviour

The presence of significant equity also influences how landlords respond to current market conditions. As highlighted elsewhere in the Property118 dataset, many landlords are planning to reduce their portfolios or exit entirely. When equity levels are high, these decisions become easier to implement. Selling a property with low or no debt is a straightforward way to release capital, particularly if there is no immediate need to refinance or restructure, but is that the best option to choose?

A turning point in how portfolios are used

The data suggests that many landlords are approaching a turning point. Having built substantial equity over time, the focus is shifting from accumulation to utilisation. The question is no longer how to build the portfolio, but what to do with what has already been created.

For now, one conclusion stands out: a significant proportion of landlord wealth is tied up in property, but without a clear strategy, that equity risks remaining passive rather than productive.

Important context: Property118 is not currently recommending Section 162 incorporation for landlords with mortgages while legal uncertainty remains over the treatment of mortgage liabilities. Read our current position here: Why Property118 is not currently recommending s162 incorporation to landlords with mortgages

A conversation worth having?

If you are weighing up your own strategy, whether that’s to sell, expand, or restructure to improve profitibility, it is worth having a discussion with a Property118 consultant to take a closer look at how your portfolio is structured as a whole now, and to forecast the outcomes based on multiple scenario’s.

These conversations are typically most useful for landlords with established portfolios and relatively modest borrowing who are beginning to reflect on how their assets could work more effectively in the years ahead.

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A conversation worth having?

If you are weighing up your own strategy, whether that’s to sell, expand, or restructure to improve profitibility, it is worth having a discussion with a Property118 consultant to take a closer look at how your portfolio is structured as a whole now, and to forecast the outcomes based on multiple scenario’s.

These conversations are typically most useful for landlords with established portfolios and relatively modest borrowing who are beginning to reflect on how their assets could work more effectively in the years ahead.

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Rent rises affect one in three tenants since rental reforms

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Property118

Rent rises affect one in three tenants since rental reforms

Nearly a third of tenants in England have experienced rent rises since the Renters’ Rights Act received Royal Assent six months ago, according to a new report.

Data from SpareRoom shows that 30% of tenants who have stayed in the same rental property during that period have had their rent increased.

The findings come as the Renters’ Rights Act is due to come fully into force on 1 May, when Section 21 evictions will be abolished and fixed-term tenancies will end.

Being a landlord requires work

According to SpareRoom, 28% of tenants in London said their rent had increased since the Act received Royal Assent.

Of those who experienced a rise, 39% said it was due to increased costs for landlords, while 11% said it was because mortgage rates had gone up.

Matt Hutchinson, director of SpareRoom, said: “Given the rental market is supposed to be made fairer by these reforms, it isn’t fair tenants have been at the receiving end of all the upheaval since the 1 May hard deadline was announced.

“On the upside, what we may find is landlords who treat their rentals as a passive income may decide enough is enough, and that’s not necessarily a bad thing. Being a landlord requires work and good landlords know that.

“But there will also be good landlords who’ve decided compliance isn’t worth the hassle and it will be a great shame to lose them.”

Under the Renters’ Rights Act, landlords will only be able to raise rents once a year using a Section 13 notice.

Not all landlords will be prepared

The data also reveals that 11% of tenants in England have received an eviction notice or been evicted since the Act received Royal Assent, with the main reason for eviction (43%) being landlords selling the property.

Mr Hutchinson adds that, although evictions have remained relatively stable, there could still be a delayed impact.

He said: “It would be an exaggeration to say supply in the flatshare market has been immune to the Renters’ Rights Act, but it’s been surprisingly resilient when you consider the response from landlords, many of whom said they planned to quit the market or reduce their portfolios.

“There’s still the risk of a delayed reaction after 1 May. Not all landlords will be as prepared as they should be, and they may be a flight risk.

“However, there are some signs that flatshare supply may now be under threat. Although supply has grown for the past three consecutive years, supply growth in the year to January 2026 slowed considerably.

“The Renters’ Rights Act will give tenants much greater security. The end of Section 21 ‘no fault’ evictions and fixed-term tenancies, and stopping landlords asking for several months’ rent in advance are truly game changing for tenants. What it’s unlikely to do, in the short term at least, is significantly reduce rents, but it is a huge step forward in correcting the power imbalance.”

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