Regulatory Policy Committee Finds Impact Assessment Lacking

The UK government’s plan to extend the Decent Homes Standard (DHS) to private landlords by 2035 has come under sharp criticism from the Regulatory Policy Committee (RPC). The committee described the Ministry of Housing, Communities and Local Government’s (MHCLG) impact assessment as ‘not fit for purpose’, raising serious concerns about the robustness of the government’s approach. The DHS, currently applied to social housing providers, aims to ensure minimum standards of repair, thermal comfort, and facilities, but the extension to the private rented sector (PRS) requires careful evaluation.

The RPC’s main criticism is that the government’s impact assessment fails to consider viable alternatives to the preferred option. Instead, it jumps directly to a single approach without a structured comparison of costs, benefits, risks, or sequencing. This omission means the assessment cannot demonstrate that the chosen option is the most cost-effective or appropriate for landlords and tenants.

Alternatives and Business Case Not Adequately Addressed

The committee has instructed MHCLG to produce a comprehensive shortlist appraisal in line with the Treasury’s Green Book appraisal and evaluation guidelines before proceeding further. This appraisal should evaluate multiple options to ensure the government’s preferred approach is justified.

Additionally, the RPC criticised the government for inconsistent application of ‘additionality’ logic. While costs are carefully attributed to new regulations, the claimed health and wellbeing benefits for tenants are presented as if they are entirely new gains, without acknowledging that some improvements may already be realised under existing legislation.

Costs Largely Reflect Existing Legal Requirements

The impact assessment estimates a £6.5 billion cost for implementing the DHS across both private and social housing sectors. However, the RPC points out that 82% of costs attributed to private landlords are not truly additional. Many arise from compliance with existing laws such as the Homes (Fitness for Human Habitation) Act 2018, the Housing Health and Safety Rating System (HHSRS), and updated Energy Performance Certificate (EPC) standards.

This raises concerns that landlords may be unfairly burdened with costs already incurred under current regulations. The committee also warns that the benefits side of the assessment does not apply the same rigorous approach, potentially overstating tenant gains.

Uncertainty Over Scope of Required Work

For England’s estimated 2.3 million private landlords, the report highlights ongoing uncertainty about the extent of work needed to meet the new DHS requirements. Approximately 48% of private rented homes are expected to fail the updated standard, primarily due to disrepair, but also because of stricter rules on thermal comfort, damp and mould, and facilities.

Despite the RPC’s critical findings, the government is expected to proceed using secondary legislation powers under the Renters’ Rights Act. The impact assessment indicates that local authority enforcement data and broader housing quality monitoring will be used to track policy performance.

However, the RPC emphasises the need for clearer details on metrics, accountability, timing, data flows, and formal evaluation processes. It recommends establishing feedback mechanisms for councils to ensure the real-world impact of the DHS extension is properly monitored.

Industry Reaction and Implications for Landlords

Emily Popple, director of landlord experience at Goodlord, commented on the report: “This will be disappointing news for the government at a time when it’s overseeing the most seismic set of PRS reforms in a generation. You’d be hard pushed to find reputable landlords and agents in the PRS who don’t support higher housing standards. But any new regulations must have a robust and economically sound policy base underpinning them.”

She added: “This week’s report undermines the government’s position and will make it harder to garner goodwill amongst an industry who are already grappling with a wide range of new costs and regulations. The government must address these concerns properly, otherwise it risks raising wider questions about regulatory oversight and cost-benefit discipline at a time when tensions in the markets are already high.”

For landlords and letting agents, this means continued uncertainty about the timing and scope of new DHS requirements. It also signals the importance of engaging with consultations and preparing for potential enforcement changes, while monitoring further government guidance and impact evaluations.

What It Means for UK Landlords

Landlords should be aware that while the government intends to raise housing standards through the DHS extension, the regulatory framework and cost implications remain under review. The current impact assessment’s shortcomings suggest that landlords may face evolving requirements as the government refines its approach.

Understanding that many costs may reflect compliance with existing laws can help landlords prioritise maintenance and improvements. Staying informed about enforcement practices and participating in industry discussions will be essential as the policy develops towards the 2035 implementation target.

Suggested internal link anchors

• Decent Homes Standard
• private rented sector reforms
• Homes (Fitness for Human Habitation) Act 2018
• Housing Health and Safety Rating System
• Energy Performance Certificate standards
• Renters’ Rights Act
• local authority enforcement
• housing quality monitoring
• private landlord regulations
• cost-benefit analysis in housing policy

TLA update

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