This edition focusses on recent government policy announcements with implications for the social housing sector.
Future Social Rent Policy and Social Rent Convergence
MHCLG has published a consultation outcome relating to consultations held last year on future rent policy and convergence. The consultation outcome confirms the earlier Spending Review announcement of a new 10 year rental settlement allowing annual rent increases up to CPI +1% each year from 1 April 2026 to 31 March 2036, based on CPI from the previous September.
The decision on rent convergence which was the subject of a separate consultation in July 2025 confirmed that Registered Providers may increase the rent on Social Rent homes by up to an additional £1 per week above the CPI+1% limit from April 2027, and £2 per week from April 2028, until formula rent is reached.
Following these announcements, the Regulator of Social Housing (RSH) published the Rent Standard 2026 and associated guidance reflecting the new social rent policy and convergence arrangements.
The New Decent Homes Standard
The Government has published a policy statement in response to its consultations on a new Decent Homes Standard (DHS).
The policy statement confirms that the new DHS will apply to both social rented and private rented sectors from 2035. This extended implementation timeframe is intended to allow landlords sufficient time to plan for and manage implementation effectively. In addition, the government is keen to ensure social landlords have the resources to support both improvements to their existing stock and continued delivery of new supply.
The new DHS will focus on condition as the primary factor for compliance, rather than the age of a property/ component. See box for overview of the new DHS
The new DHS will also apply to supported housing and temporary accommodation; however, the government has recognised that there may be instances where it is not appropriate for landlords to meet certain elements of the DHS and further guidance on this will be available later this year. Additional guidance will also be published covering rented homes where the landlord is a leaseholder, as well as mixed‑tenure blocks containing both rented and owner‑occupied leasehold properties.
The new DHS will not include a mandatory requirement to provide floor coverings, although this was part of the consultation. Housing Minister Matthew Pennycook, in a parliamentary written statement, indicated that this decision reflects careful consideration of feedback received and the significant challenges that would be involved in implementing this as a mandatory requirement. However, the government recognises that many residents struggle to provide basic floor coverings and will look to identify cost-effective ways landlords can support tenants in need.
Other measures included as part of the consultation that have not been carried through to the new DHS include proposed enhanced home security measures and obligations to meet enhanced standards within the public realm (boundary walls, curtilage, pathways and steps, signage, external lighting, bin stores).
Modelling the Decent Homes Backlog and Costs
MHCLG has also published a report using analysis of English Housing Survey data (2023) to estimate whether dwellings would pass or fail the new DHS, as well as estimating the cost of bringing homes up to the new standard.
The report indicates a likely failure rate against the new DHS of 45% in the social rented sector and 48% in the private rented sector (PRS).
The cost of meeting the standard will reflect both the cost of upgrades to meet the revised standard and actions required for landlords not currently meeting obligations. Using 2023 data, this is expected to cost £26.5 billion in the PRS and £11.3 billion in the social rented sector, although only £5.4 billion and £1.8 billion of these costs are those above and beyond existing obligations respectively.
Overview of the Decent Homes Standard
Criterion A – A home must be free of the most dangerous hazards.
To meet this criterion, 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 against 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.
To meet this criterion, flats must provide at least 3 of the following facilities:
- 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
To meet this criterion, houses must provide at least 2 of the following facilities:
- a kitchen with adequate space and layout
- an appropriately located bathroom and WC
- adequate external noise insulation
Homes must also be equipped with child-resistant window restrictors, which can be overridden by an adult, on all windows which present a fall risk for children
Criterion D – A home must provide thermal comfort.
To meet this criterion, homes must provide a reasonable degree of thermal comfort. This includes ensuring homes meet 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 Consultation Response
In January MHCLG published the outcome of the consultation Improving the energy efficiency of socially rented homes in England which confirm the requirement for social rented properties to achieve EPC C or equivalent by 1 April 2030.
The ‘dual metric’ approach set out in the consultation requiring providers to meet EPC C in two metrics, is retained. However, in response to concerns about deliverability and affordability, the timescale for full implementation has been extended. Social landlords will only be required to meet one metric by the 2030 deadline; the second metric must be achieved by 2039.
In addition, the ‘Fabric First’ principle will no longer be mandatory, allowing landlords to select which metric (smart, heat, or fabric) is best suited to their stock and tenant needs allowing flexibility where other metrics may deliver greater benefits.
A new, time‑limited ‘Spend Exemption’ will apply from 1 April 2030, capping required energy‑efficiency investment at £10,000 for a 10‑year period. Also, homes that are already compliant with EPC C with a valid certificate issued before the new EPC format is introduced will be able to rely on this certificate until it expires.
Warm Homes Plan
The Warm Homes Plan published on 21st January 2026, by the Department for Energy Security and Net Zero (DESNZ), sets out government policy and a £15 billion investment plan to upgrade up to 5 million homes by 2030 and help lift one million families out of fuel poverty.
With a focus on electrified heating, insulation, and residential solar power, the plan aims to deliver significantly lower energy bills through low-carbon technologies and energy efficiency measures. Whilst the plan does not currently set a date to end gas boiler sales, it seeks to incentivise low carbon alternatives. It represents one of the largest ever programmes of public investment in home upgrades in the UK.
There are 3 elements to the Plan:
Direct support for low-income households
- One third of the total funding (£5 billion) will be targeted towards low-income households, with grants potentially covering the full cost of upgrades e.g. fully funded installations of solar panels and a battery, to the full average cost (currently £9,000-£12,000)
- For social housing residents, this could mean upgrades to entire streets at the same time, lowering bills and improving warmth and comfort for whole neighbourhoods.
Energy- Efficiency Improvements (‘an offer for everyone’)
- The central focus is electrified heating through heat pumps described as the most effective low carbon heating technology for most homes. A £7,500 universal grant for heat pumps, including “air-to-air heat pumps” that can also cool homes in the summer. The plan envisages installation of 450,000 heat pumps annually by 2030 (200,000 in newbuild properties and 250,000 in existing homes)
- Government-backed, zero and low interest loans will also be available to get solar panels onto the nation’s rooftops. New rules that mean every new home will come with solar panels by default. This plan will triple the number of homes with solar panels on their rooftops by 2030.
New protections for renters:
- A new obligation on private landlords to improve the energy performance of properties to EPC C by 2030 targets up to 3 million rental properties for improvement over the next 4 years.
In summary, the plan targets reducing fuel poverty by delivering cost savings and energy efficiency. Energy bills will be reduced through investment in low carbon technology and insulation to upgraded standards using a combination of government grants, loans and incentives. A new Warm Homes Agency will also be set up to provide consumers with information and advice on options available within the plan.
Linked releases from DESNZ
Fuel Poverty Strategy for England
This policy paper sets out the government’s approach based around three main policy strands, namely – reducing energy costs, tackling the cost of living and improving energy performance.
Consultation Response – Improving energy performance of privately rented Homes
This consultation response confirms key policy decisions on minimum energy efficiency standards (MEES) in the private rented sector. The target of EPC C will apply for all tenancies by 2030 (subject to a maximum investment of £10K per property).
Delivering New Social and Affordable Homes
Bidding for the new Social and Affordable Homes Programme (SAHP) 2026 -36 is due to open this month with several funding routes available. The programme’s key objective is to deliver around 300,000 social and affordable homes over the life of the programme, with at least 180,000 of these homes being for Social Rent. As part of the government’s wider development drive, several new initiatives have been announced designed to promote development and tackle obstacles to programme delivery.
Updated Housing Revenue Account Guidance
The government is keen to encourage councils which have no recent history of housebuilding to start building again. To facilitate this the government has announced an increase in the Housing Revenue Account threshold from 200 to 1,000 homes making it easier to undertake new development without an immediate requirement to re-open a Housing Revenue Account.
Roadmap for Section 106 Delivery in England
On 28th January MHCLG released a policy statement setting out measures to reset the Section 106 (S106) mechanism for delivering social and affordable housing. This includes time limited flexibilities to resolve the legacy of uncontracted S.106 homes and new measures to establish simpler, more transparent and more resilient arrangements going forward.
New Homes Accelerator Scheme
This scheme is a collaboration between government, Homes England, the Greater London Authority, local authorities, developers and other key stakeholders. It aims to provide specialist assistance to unblock and accelerate development delivery and is particularly focussed on getting homes built this Parliament. Phase 2 announced in January 2026 extends the scheme to sites under 500 homes and includes guidance on how to apply along with the application form, for developers, local authorities and landowners interested in the scheme.
Recent Publications
Housing Ombudsman Report (February 2026)
The latest report in the learning from severe maladministration series focusses on compensation awards and is accompanied by new guidance setting out the key principles and expectations expected to underpin a fair approach to compensation, make clear expectations and encourage consistency. This guidance will be effective from 1 April 2026.
The guidance is for internal use by caseworkers who make decisions on behalf of the Ombudsman and landlords are encouraged to adopt a compensation policy that aligns with it. The guidance stresses that compensation payments are not punitive or a regulatory fine but should be determined by the principle of putting the resident back in the position they would have been in had the service failings not happened. The aim is to deliver a fairer, more consistent approach to compensation payments across the sector. It is also noteworthy that compensation is not always ordered as other forms of redress may be deemed more appropriate.
General Announcements
Invitation to Take Part in Research on Awaab’s Law.
Verian, an independent social research agency, is working with MHCLG to understand social landlord and tenant experiences of the early implementation of Awaab’s Law. The findings will inform improvements for future phases of Awaab’s Law, shape policy decisions that affect social landlords and tenants and provide insights to help landlords strengthen compliance, improve tenant relationships, and reduce risk.
Verian is looking to recruit social housing landlords and tenants to participate in this research. Please see the recruitment survey here.
ADoH Bitesize Webinar: Ending Furniture Poverty (26 February 10-11am)
The charity End Furniture Poverty (EFP) works to raise awareness of furniture poverty—its scale, its impact, and the solutions available. Claire Donovan, Director of EFP, will share research showing the extent of furniture poverty in social housing and the impact it has tenants. She will also explain how EFP supports local authorities and housing associations to introduce cost‑neutral furniture provision. She will be joined by Andrew Waters, who leads the furniture rental service at their sister charity FRC, as well as representatives from local authorities EFP has supported—including a stock‑holding authority with a long‑running furnished tenancy scheme and a non‑stock‑holding authority that has worked with EFP to bring local housing associations together to improve furniture provision. If you would like to attend the webinar please contact the CWAG Policy Officer.