Propertymark has warned ministers not to use changes to the Disabled Facilities Grant (DFG) formula as a backdoor route to reducing long-term funding as demand for home adaptations continues to rise.
The UK Government has confirmed it will introduce a new DFG allocation formula for 2026–27, shifting away from regional averages and instead basing funding on local need and building costs. Local authorities’ funding will be maintained at 100% of last year’s allocation, totalling £723m.
However, the guaranteed minimum level of financial support is set to fall from 97.5% in 2027/28 to 95% in 2028/29, prompting concern that overall spending could tighten in future years.
Propertymark argues that with an ageing population and rising disability diagnoses, funding must remain robust.
FUNDING ALIGNMENT
Households in England can currently access up to £30,000 through the DFG, compared with £36,000 in Wales – a gap the Government is reviewing. Propertymark supports aligning English funding with Welsh levels to better reflect the real cost of adaptations.
Data also shows high-value adaptations for children cost on average 25% more than those for adults, yet no funding adjustments have been made based on age or ethnicity.
In the private rented sector, landlords can only access DFG funding where a disabled tenant is already in situ.
Propertymark has long called for streamlined eligibility and separate funding to help landlords proactively improve accessibility. The Government has confirmed there will be no dedicated PRS fund, arguing that the abolition of Section 21 under the Renters’ Rights Act will give tenants greater confidence to request adaptations.
CHANGING DEMOGRAPHICS
Tim Thomas, Policy and Campaigns Officer at Propertymark, says: “The announcement that the UK Government will implement a new Disabled Facilities Grant formula is an important one, and we encourage ministers to maintain strong funding levels as population needs continue to evolve.
“Given the changing demographics, with more persons with a disability and older people accessing the PRS, grant funding must support more landlords to improve accessibility.
“Fundamental to this will be greater collaboration between local authorities and private landlords through an accessible housing database, widened access to grant funding and improved awareness of existing grant funding opportunities.”
