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England · Utilities · Landlord Obligations · Bills Included Lets

Landlord Utilities Responsibility UK 2026 — Guide

Who is responsible for utilities in a rental property in England 2026: council tax liability, gas and electricity during voids, utilities in bills-included HMOs, switching suppliers, and landlord liability for utility debts left by tenants.

8 min readUpdated 14 May 2026utilitiescouncil-taxlandlord-compliancehmo

Utility responsibility — the basic framework

  • In most private residential tenancies, the tenant is responsible for paying utilities (gas, electricity, water) and council tax during the tenancy period. The landlord's obligation is to ensure the property has the connections and installations in place — not to pay the bills
  • The tenancy agreement should specify which utilities are the tenant's responsibility and which (if any) the landlord pays. A bills-included tenancy (common in HMOs and student lets) places all or some utility bills on the landlord
  • Council tax liability: in a standard tenancy, council tax is the tenant's responsibility from the tenancy start date. If the property is empty between tenancies, council tax becomes the landlord's liability — see below
  • Water rates: water charges are typically the occupier's responsibility, following the tenant from move-in to move-out. In some older arrangements, water rates were landlord-paid — check the historic billing position for older properties
  • Energy Performance Certificate (EPC): the EPC must be at band E or above for a new tenancy — landlords cannot let a property with an EPC below E without an exemption. From proposed future legislation, the minimum will rise to C — check current requirements before letting

Council tax during voids — landlord liability

  • When a property is empty between tenancies, council tax liability transfers to the landlord (as the owner of the empty property). Most councils charge full council tax on empty properties, with some councils charging a premium for long-term empties (up to 300% in some areas for properties empty over 5 years)
  • Student exemption: a property entirely occupied by full-time students is exempt from council tax. If the property is a student HMO, register the exemption with the council — students must provide council tax exemption certificates
  • HMO council tax: the landlord is liable for council tax on an HMO — the individual tenants in a shared HMO are not personally liable to the council for council tax. The landlord bills the council tax as part of the all-inclusive rent in a bills-included HMO
  • Void allowance: most councils provide a short period (typically 1–3 months) of reduced or zero council tax for empty furnished properties between lettings — check your specific council's policy
  • Notify the council: register the change of liability promptly when a tenancy starts and ends. A landlord who does not notify the council when the property is re-let may continue to receive council tax bills that are now the tenant's responsibility

Bills-included HMO lettings

  • In a bills-included HMO (common for student and professional house shares), the landlord includes gas, electricity, and sometimes broadband in the rent. The landlord is the account holder and pays the utility bills directly
  • Usage caps: many bills-included tenancy agreements include a fair usage cap — if the tenants' consumption exceeds the cap, the excess is charged to the tenants. The cap and the method of calculation must be clearly set out in the tenancy agreement
  • Smart meters: install smart meters in bills-included properties to monitor usage accurately and bill any excess fairly. Smart meters also allow remote monitoring of energy use
  • Ofgem protections: tenants in bills-included arrangements where the landlord charges them directly for utilities may be protected under Ofgem's resale rules — the landlord cannot charge more than the Ofgem maximum price cap per unit. Check the current Ofgem resale rules before setting utility charges
  • Broadband: broadband is typically a landlord-arranged service in HMOs. Choose a reliable supplier and ensure the contract runs sufficiently long to cover expected tenancy periods — avoid contracts that expire mid-tenancy

Utility accounts during tenancy changeovers

  • Gas and electricity meter readings: take readings on the day the tenant moves in and on the day they move out. Provide the reading to the outgoing tenant and to the incoming tenant — this creates a clear division of liability between billing periods
  • Notifying suppliers: notify the utility supplier of the tenancy change (outgoing and incoming tenant details and the date of change). Many suppliers have an online 'new tenant' notification system
  • During void periods: the landlord becomes responsible for gas and electricity charges during a void period. Register as the account holder with the existing supplier to avoid the property being placed on a default (typically expensive) tariff
  • Switching suppliers: landlords can switch energy suppliers during a void period. When a new tenant moves in, the tenant can switch to their preferred supplier after giving the minimum notice period to the current supplier
  • Water: contact the water company on the day of tenancy changeover. Most water companies require the outgoing tenant to close their account and the incoming tenant to open a new one — provide meter readings on both sides of the changeover

Landlord liability for utility debts left by tenants

  • Gas and electricity debts: if a tenant leaves without paying their energy bills, the debt is owed to the supplier by the tenant — not by the landlord (provided the account was in the tenant's name). The landlord is not liable for the tenant's personal utility debts
  • However: if the utility account remained in the landlord's name during the tenancy (e.g. because the landlord failed to register the account in the tenant's name), the landlord may be liable for the unpaid bills
  • Best practice: always ensure that utility accounts are registered in the tenant's name from the tenancy start date. Obtain meter readings and notify the supplier on move-in day
  • Council tax arrears: council tax arrears from a previous tenancy are the former tenant's personal liability — not the landlord's (unless the property was an HMO where the landlord was the accountholder). However, the council may pursue the landlord if the arrears period overlaps with a void (when the landlord was liable)
  • Protect yourself: obtain final meter readings on check-out and notify all utility suppliers of the tenancy end date. This creates a clear audit trail separating tenant liability from landlord liability

Templates recommended in this guide

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