Water rates liability — tenant, void periods and s.144A
WIA 1991 s.144: occupier (tenant) primarily liable for water charges during tenancy. Landlord becomes occupier (and liable) during void periods — no other occupier. s.144A WIA 1991 (Water Act 2003 insertion): landlord (owner) liable where water company cannot identify or trace the occupier — important for high-turnover properties (HMOs; student lets) where tenant details not registered with water company. Practical protection: notify the water company of each tenancy start and end date; provide new tenant's details; take and record meter readings at each changeover. Failure to notify: landlord risks being pursued for tenant consumption under s.144A or for arrears accumulated before the company updated its records.
- Void period liability: standing charges and minimum consumption charges accrue during void; metered properties incur minimal consumption if properly secured but standing charges continue
- s.144A: enacted to address high-turnover rental properties where water company cannot trace occupiers; owner (landlord) becomes liable — register tenant details with water company at each change to avoid this
- Water company notification: most English and Welsh water companies have online landlord portals or dedicated landlord lines for occupancy change notification
- Regional water companies (England/Wales): Thames Water; Severn Trent; Anglian Water; United Utilities; Yorkshire Water; Southern Water; South West Water; Wessex Water; Affinity Water — identify your region and register as a landlord account holder
Bills-included tenancies, HMO billing, Water Resale Order 2006 and devolved positions
Bills-included tenancies: landlord pays water company and recovers through inclusive rent; Water Resale Order 2006 caps resale at actual cost + maximum 15% administration charge — no profit on water; applies to all bills-included and HMO arrangements. HMO: typically single meter for whole property; landlord pays one bill; recovers via inclusive rent; cannot install sub-meters and charge individual rooms without legal advice (Water Resale Order 2006 still applies). Metered vs unmetered: metered = actual consumption; unmetered = rateable value annual charge (uncommon for new connections; still applies to some older properties).
- Water Resale Order 2006: applies to all landlords supplying water to tenants as part of tenancy; maximum recovery = water company bill amount + 15% admin charge; breach risks Ofwat complaints and county court refund claims
- HMO practical approach: include water cost in rent at actual cost divided equally between tenants; simpler than separate utility charges; avoids Water Resale Order breach risk
- Scotland: Scottish Water (publicly owned); water and sewerage charges collected via council tax bill; tenant pays council tax (and therefore water element) during tenancy; landlord pays during voids; most Scottish properties unmetered (rateable value billing via council tax)
- NI: NI Water (publicly owned); domestic water charges not separately billed to NI occupiers currently — domestic rates system (Land and Property Services NI) covers water costs; check NI Water and LPS for current position