Millions of homes still fail decency tests despite energy gains

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Millions of homes in England continue to fall short of basic quality standards even as energy efficiency across the housing stock shows marked improvement, according to the latest English Housing Survey.

The 2024-25 findings show that around 4 million dwellings – 15% of the total – failed to meet the Government’s Decent Homes Standard, a figure little changed from 2022.

Property Soup reports that the data points to persistent regional and tenure-based disparities, with conditions worsening in parts of the South East while modest improvements were recorded in the North West.

Some 3% of households were classed as overcrowded in 2024-25 but overcrowding has risen steadily over the past decade in both the social rented sector, where it has climbed from 6% to 9% and the private rented sector, up from 5% to 6%. At the same time, owner-occupied homes have seen rising levels of under-occupation.

WIDESPREAD SAFETY CONCERNS

Safety concerns also remain widespread. Around 2.3 million homes – 9% of the total – contained a Category 1 hazard under the Housing Health and Safety Rating System, broadly unchanged from two years earlier.

For the first time, owner-occupied homes were just as likely as private rented properties to contain serious hazards, reflecting the growing risks associated with ageing housing stock, particularly vacant homes.

Damp is an increasing problem, affecting 1.4 million dwellings, or 5% of homes, up from 2022. The issue is most acute in the private rented sector, where one in 10 homes reported damp, with severe condensation the most common cause.

ENERGY EFFICIENCY

Against this backdrop, the survey shows significant progress on energy efficiency. More than half of all homes are now rated EPC band A to C, up from just over a quarter a decade ago.

The share of the least efficient homes, rated E to G, has fallen to 9%.

The average cost of upgrading a home to at least band C is estimated at £7,480, with owner-occupied properties requiring the highest investment.

Rates of insulation and double glazing have continued to rise, highlighting long-term improvements but the survey shows the scale of work still needed to improve housing quality alongside the drive for greener homes.

PERSISTENT CHALLENGES
Nathan Emerson, Propertymark
Nathan Emerson, Propertymark

Nathan Emerson, CEO of Propertymark, says: “The latest English Housing Survey findings highlight both encouraging progress and persistent challenges in the quality and energy performance of England’s housing stock.

“It is positive to see long-term improvements in energy efficiency, with over half of homes now rated in the higher A-C energy bands and increasing uptake of insulation and double glazing.

“These trends will help cut bills and reduce carbon emissions, which are outcomes the property sector has long supported.

“Millions of homes continue to fall short of decent living conditions.”

“However, the findings also reinforce areas of concern that must not be overlooked. Millions of homes continue to fall short of decent living conditions, with dampness, hazards, and overcrowding affecting significant numbers of households across tenures.

“Propertymark continues to support measures that drive improvements in housing quality and energy performance, but this must be paired with practical support for landlords and homeowners to make necessary upgrades.

“Clear guidance, targeted financial support, and sensible implementation timelines will be essential if we are to bring all homes up to modern standards without placing undue strain on households and the housing market.”

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