Government publishes new details on rent convergence, Decent Homes Standard, Minimum Energy Efficiency Standards

This week the government announced a series of major housing policy announcements, ending significant uncertainty around future regulatory requirements and rental income. These announcements include confirmation about how rent convergence will be implemented throughout the 2026 – 2036 rent policy period and the government’s response to major consultations on a new Decent Homes Standard and Minimum Energy Efficiency Standards.

 

Rent convergence

On rent convergence, the government confirmed that convergence would be implemented  through a phased approach, but would landlords would not be able to implement convergence from April 2026. Instead, convergence will be permitted for the financial year beginning from April 2027 at £1 per week, before rising to £2 per week from 2028 and for the rest of the ten year rent period.

Convergence will also only be permitted to formula rent level, rather than the additional 5% (or 10% for supported housing) that providers are able to charge in some circumstances.

 

Decent Homes Standard

The government also published their response to the previous consultation on a new Decent Homes Standard, with some major changes to the proposals after sector feedback.

Following consultation, the government are not progressing with previous proposals to mandate floor coverings as part of the Decent Homes Standard, or extending the purview of the Standard to include elements of the wider public realm beyond the home.

The below table shows a summary of the requirements for each Criterion within the new Decent Homes Standard, which will apply to all rented homes, in both the private and social rented sectors, from 2035.

 

Criterion Requirements
Criterion A – A home must be free of the most dangerous hazards •        Properties must be free of ‘Category 1’ hazards as assessed under the Housing Health and Safety Rating System (HHSRS).
Criterion B – A home must be in a reasonable state of repair Homes will fail this criterion if:

•        One or more key building components is not in a reasonable state of repair, or

•        • Two or more other building components are not in a reasonable state of repair.

Criterion C – A home must provide core facilities and services Flats must provide at least 3 of the following:

•        A kitchen with adequate space and layout

•        An appropriately located bathroom and WC

•        Adequate external noise insulation

•        Adequate size and layout of common entrance areas for blocks of flats

 

Houses must provide at least 2 of the following:

•        A kitchen with adequate space and layout

•        An appropriately located bathroom and WC

•        Adequate external noise insulation

All homes must also be equipped with:

• Child-resistant window restrictors (overrideable by an adult) on all windows that present a fall risk for children.

Criterion D – A home must provide thermal comfort •        Homes must provide a reasonable degree of thermal comfort, including meeting Minimum Energy Efficiency Standards.
Criterion E – A home should be free of damp and mould •        Homes will be non-decent if a landlord has not remedied damp and mould.

 

Minimum Energy Efficiency Standards

Finally, new Minimum Energy Efficiency Standards for the social rented sector, which will form a core part of Criterion E of the Decent Homes Standard, were also published.

The government had originally proposed that properties would need to align with two of three metrics, covering a building’s fabric, heating system and smart readiness, by 2030. This has been reduced in scope following consultation, so properties will now need to be compliant with one of the three metrics by 2030, and with two metrics by 2039. Providers will be able to apply for a “time-limited spend exemption” of ten years if they have incurred £10,000 of spend on an individual property’s energy efficiency upgrades and it still cannot be made compliant with the Standards.

There will also be an extended transition arrangement introduced, whereby all properties that achieve EPC C on the current system by 2030, will be considered compliant with MEES until their energy performance certificate needs renewing.

You can read the full details of the outcome of the MEES consultation here.

This comes on the back of the government publishing the Warm Homes Plan, laying out £15 billion worth of public investment to improve the energy efficiency of 5 million homes between now and 2030. You can read more about the Warm Homes Plan here.

NHC members will receive a full detailed briefing on all of these announcements in the coming days. Welcoming the announcements, the Northern Housing Consortium’s Chief Executive, Tracy Harrison, said:

“Today’s package of announcements will give Northern social housing providers long term financial and regulatory certainty and is warmly welcomed by the NHC. It will help our members to deliver warm and safe homes across the North.

“The Government has listened to and responded to feedback from NHC members on the new Decent Homes Standard and Minimum Energy Efficiency Standards. The new standards take on board consultation findings, and, as a result, are more practical to implement and will improve the quality of homes across the North. 

“The NHC and other sector bodies called for the introduction of rent convergence to unlock greater investment in new and existing homes. The rate the Government has put forward balances the need to invest in homes while ensuring rents remain affordable to residents. This, alongside today’s announcement that low interest loans will be available to northern housing associations, and the transformational £39bn ten-year Social and Affordable Homes Programme, will enable our members to build many more homes in the North.

“We look forward to continuing to work closely with the Government to support NHC members to deliver the homes Northern communities need.”