diff --git a/nixos/doc/manual/release-notes/rl-2103.xml b/nixos/doc/manual/release-notes/rl-2103.xml
index 2b0144a69c22..7c6356770a5f 100644
--- a/nixos/doc/manual/release-notes/rl-2103.xml
+++ b/nixos/doc/manual/release-notes/rl-2103.xml
@@ -431,6 +431,13 @@
      been dropped from upstream releases.
     </para>
    </listitem>
+   <listitem>
+    <para>
+     <xref linkend="opt-users.users._name_.createHome" /> now always ensures home directory permissions to be <literal>0700</literal>.
+     Permissions had previously been ignored for already existing home directories, possibly leaving them readable by others.
+     The option's description was incorrect regarding ownership management and has been simplified greatly.
+    </para>
+   </listitem>
   </itemizedlist>
  </section>
 </section>
diff --git a/nixos/modules/config/update-users-groups.pl b/nixos/modules/config/update-users-groups.pl
index fd3affae899c..758237152932 100644
--- a/nixos/modules/config/update-users-groups.pl
+++ b/nixos/modules/config/update-users-groups.pl
@@ -209,10 +209,11 @@ foreach my $u (@{$spec->{users}}) {
         }
     }
 
-    # Create a home directory.
+    # Ensure home directory incl. ownership and permissions.
     if ($u->{createHome}) {
         make_path($u->{home}, { mode => 0700 }) if ! -e $u->{home};
         chown $u->{uid}, $u->{gid}, $u->{home};
+        chmod 0700, $u->{home};
     }
 
     if (defined $u->{passwordFile}) {
diff --git a/nixos/modules/config/users-groups.nix b/nixos/modules/config/users-groups.nix
index 72285fe631da..a95763380986 100644
--- a/nixos/modules/config/users-groups.nix
+++ b/nixos/modules/config/users-groups.nix
@@ -198,10 +198,8 @@ let
         type = types.bool;
         default = false;
         description = ''
-          If true, the home directory will be created automatically. If this
-          option is true and the home directory already exists but is not
-          owned by the user, directory owner and group will be changed to
-          match the user.
+          Whether to create the home directory and ensure ownership as well as
+          permissions to match the user.
         '';
       };