In our recent article on the Renters’ Rights Bill, we outlined the key reforms that the government plans to introduce when the draft legislation completes its passage through parliament. Underpinning these reforms is a long-standing commitment to make housing in the private rented sector secure, safe and decent for all tenants.
The proposed abolition of no-fault evictions is aimed at making renting more secure for tenants and has been widely commentated on. But what of the commitments to make all housing safer and decent? In this article, we consider the government’s proposals to extend Awaab’s Law and the Decent Homes Standard from the social housing sector to the private rented sector, in an effort to fulfil these pledges.
Before moving on, it’s important to acknowledge that the majority of landlords in the private rented sector are engaged and responsible, striving to meet the existing health and safety standards. Indeed, many go beyond these requirements, ensuring that their properties are of good quality and comfortable places to live. The proposals contained in the Renters’ Rights Bill aim to protect the reputation of these responsible landlords by cracking down on the handful of rogue landlords whose sub-standard housing threatens to undermine it.
Awaab’s Law: the important details
We have previously written about Awaab’s Law and changes to the social housing regulatory regime.
To recap:
- The Social Housing (Regulation) Act 2023 introduced a new implied term in all social housing tenancy agreements, known as ‘Awaab’s Law’. This law requires social landlords to investigate and remedy health and safety hazards, such as mould and damp in their properties within strict time limits.
- A government consultation launched in early 2024 set out a number of proposals as to the scope of Awaab’s Law, the detail of which are yet to be set out in secondary legislation.
- It’s anticipated that the secondary legislation will take into account the 29 health and safety hazards set out in the Housing Health and Safety Rating System (HHSRS), a risk assessment tool used by local government to assess hazards in residential properties. These include hazards such as mould and damp. Hazards are banded from A (the most dangerous) to J (the least serious) with bands A-C being defined as category 1 hazards and bands D-J as category 2 hazards.
- The test of whether a hazard is within the scope of Awaab’s Law isn’t simply whether it’s a category 1 hazard, but whether it poses a ‘significant risk’ to the health and safety of the resident in occupation. What might pose a significant risk to one tenant might not be as hazardous to another which means that landlords will need to assess the severity of risks on a case-by-case basis.
- The consultation also set out proposed time limits for landlords to inspect and report on potential hazards that have been bought to their attention. Where a significant risk has been identified, then there are further proposals as to the timetable for commencing repairs with tighter timings for hazards that require emergency repairs.
- If a landlord fails to comply with Awaab’s Law, their tenant can bring a claim for breach of contract for damages and/or report the matter to the Housing Ombudsman Service. Landlords could also face significant penalties including fines up to £7,000 and criminal prosecution.
Requirements of the Decent Homes Standard
The Decent Homes Standard sets a minimum standard for all social housing in England and Northern Ireland. In brief, a compliant property must:
- Meet the current statutory minimum standard for housing – homes need to be free from HHSRS category 1 hazards.
- Be in a reasonable state of repair – properties which have a key building component or two other building components requiring replacing or major repair are not compliant with this criterion.
- Have reasonably modern facilities and services – e.g. a kitchen with adequate space/layout and adequate external noise insulation.
- Provide a reasonable degree of thermal comfort – e.g. it must have efficient heating.
What protections are currently in place for tenants in the private rented sector?
Currently, there are a number of standards which aim to protect tenants in the sector. They are:
- Requirements on landlords regarding energy efficiency, electrical safety, gas safety and smoke and carbon monoxide detectors.
- Statutory duties on local councils to take enforcement action against landlords if they identify seriously hazardous conditions in rented homes. Councils use the HHSRS to do this and must take action if they identify category 1 hazards . They can also decide to take action for category 2 hazards.
- Statutory requirements under the Homes (Fitness for Human Habitation) Act 2018 for landlords to ensure their property is fit for human habitation at the beginning of the tenancy and throughout. This means that properties must be free of hazards which are so serious that the dwelling is not reasonably suitable for occupation in that condition. Where a landlord fails to do so, tenants can take action in the courts for breach of contract on the grounds that the property is unfit for human habitation. The remedies available to the tenant are an order by the court requiring the landlord to take action to reduce or remove the hazard, and/or damages to compensate them for having to live in a property which was not fit for human habitation.
- There are also specific requirements for houses in multiple occupation which is also subject to a very prescriptive licensing regime.
What further protections are proposed by the Renters’ Rights Bill?
The four key proposals relating to safety and standards in the private rented sector are:
- The extension of Awaab’s Law.
- The introduction of a Decent Homes Standard.
- The creation of a new digital Property Portal.
- The provision of greater enforcement powers to local councils.
The extension of Awaab’s Law will set clear timeframes within which landlords must deal with serious hazards. The government recognises that there are differences between the private and social rented sectors and has clarified that it will consult on how best to apply Awaab’s Law in a way that is ‘fair, proportionate and effective for both tenants and landlords’.
The cost consequences of non-compliance for landlords could be significant and will require landlords to be much more pro-active with their property maintenance to avoid serious hazards arising. The inevitable financial cost of this might be the final straw for some landlords who are already struggling with rising mortgage interest rates and property maintenance costs.
Whilst an estimated 80% of private housing is compliant with the existing Decent Homes Standard, the introduction of a new standard will require the landlords of sub-standard properties to immediately invest in works to upgrade their properties. The extent of the works required will depend on the age and size of the property. It may not be feasible for some landlords to make this investment and it’s anticipated that some will exit the sector.
There is also the question of compliance and enforcement, Whilst the government envisages that a new digital property portal will be invaluable in this regard, there will be additional burdens on local councils to check the portal and follow up non-compliance. If councils are expected to prioritise enforcement and act swiftly then there will need to a review of how this is funded from central government.
When is the Renters’ Rights Bill expected to become law?
The government is committed to the Renters’ Rights Bill becoming law next summer, but that depends on how smoothly it passes through parliament and what changes are made to account for stakeholder feedback. Even once it’s on the statute books, the minutiae of the new Decent Homes Standard and Awaab’s Law will need to be fleshed out in secondary legislation.
As with any new law, the devil will be in the detail and we continue to watch this space. For further information please contact the property disputes team.
