Local authorities have a duty to keep the housing conditions in their area under review. Either as a result of that review, or for some other reason such as a complaint from a tenant or a neighbour, they can inspect a property if they have reason to think that a health or safety hazard exists there. The scoring of hazards found during an inspection must be carried out in accordance with the method set out in the HHSRS Regulations. As well as providing the legal basis for HHSRS, the 2004 Act contains a package of enforcement measures for local councils to use. These powers can be used to deal with poor housing in the private sector, or any housing owned by a public sector landlord such as the Ministry of Defence, the NHS, a Fire and Rescue Authority or the police, unless it has Crown exemption.

Councils have a duty to deal with hazards which are assessed as 'Category One' under HHSRS, and discretionary powers to deal with 'Category Two' hazards - these terms are explained below. In practice, however, these powers are not used in council stock because councils cannot enforce against themselves. This is very similar to the previous situation, except that HHSRS has replaced the fitness standard and other requirements under previous Housing Acts.

The main incentive for improvements in the housing owned by councils and housing associations (also known as registered social landlords (RSLs) is the Decent Home standard, set by the Office of the Deputy Prime Minister (now called the Department of Communities and Local Government) which incorporates HHSRS as a hazard assessment tool. Although RSLs as private landlords are also subject to enforcement action, a local authority receiving a complaint about conditions in an RSL dwelling may first consider the RSL's existing plans for complying with the Decent Home standard. However, the council can still take enforcement action in an individual dwelling if they think that the RSL's plans will not deliver improvements quickly enough to deal with the problem affecting the tenant.

For further information about how local councils will use the HHSRS to deal with hazards, see How will the system be used in practice?