Landlords who refuse to put right poor-quality homes could see councils step in and take control, under plans announced by Prime Minister Andy Burnham at the Labour Party Conference on 29 September 2026. Industry body Propertymark has warned that any move to let councils take over rental homes must be proportionate, and says the practical detail is still missing.
For portfolio investors, the prospect of losing control of an asset over disrepair marks a significant escalation in enforcement risk. Propertymark’s response, issued the same day, argues that councils should make fuller use of the tools they already hold before reaching for new legislation.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, did not dispute the aim. Tackling badly maintained housing, he said, “should remain a key concern”.
His prescription, though, is collaborative rather than punitive. He wants “local authorities across England working closely with residents, landlords and property agents to understand why properties may fall below the required standard.”
That emphasis matters. Disrepair rarely has a single cause, and a blunt power risks treating a negligent landlord and one caught up in a genuine dispute in much the same way.
“Every case will have different circumstances, so any proposals must be proportionate and recognise the individual circumstances of the property and those living in it,” Douglas said.
Why letting councils take over rental homes raises practical questions
“Further clarity is needed on how the proposals would work in practice,” Douglas said. Propertymark highlights three areas in particular.
The first is how remedial work would be carried out with a tenant still living in the property. The second is how responsibilities would be divided between the different parties involved.
The third, and the one investors will watch most closely, is how homes would be managed if they passed into local authority control or ownership.
That phrase, control or ownership, covers a wide spectrum. A temporary management arrangement that leaves the landlord holding the title is a very different proposition from a permanent transfer, and landlords will want to know which is on the table.
Data before new powers
Douglas pointed to the Register Your Rental Property Service, which is being introduced for landlords from December 2026. In his view, it will give councils “greater access to information to support targeted, intelligence-led enforcement”.
“The focus should be on making better use of existing tools rather than simply adding another layer of legislation and potentially damaging relationships between good landlords and government,” he said.
It is a familiar argument from the lettings sector, but a reasonable one. A register that tells councils who owns what, and where, should in theory let enforcement teams target the worst offenders without new powers that unsettle compliant owners.
“Any new proposals should deliver a fair, proportionate and tailored approach that achieves sustainable, long-term outcomes,” Douglas added.
What this means for investors
Nothing changes for landlords today, and the detail of how any takeover power would operate has yet to be set out. The direction of travel, however, is clear: enforcement is becoming more data-driven, and the new landlord database will put more information in councils’ hands.
HMO investors, who already carry the heavier legal duties that apply to HMO landlords, should assume closer scrutiny still. The strongest defence is a documented record of repairs and condition, and a lifecycle evidence approach to property records will count for more once councils can see a portfolio in one place.
The next test is whether the final proposals reflect the proportionality Propertymark is asking for. Until then, prompt repairs and good paperwork remain the cheapest insurance a landlord can buy.
