Utilities and bills

Utilities and bills: the position in 2026

Utilities and bills refers to important services such as gas, electricity, water, broadband internet, telephone, and council tax that are required for a tenant's daily living needs in rented accommodation. Understanding who's responsible for paying these utilities is important because it directly affects a tenant's financial obligations and the landlord's responsibilities under tenancy agreements.

In 2026, tenants must carefully review their contracts to understand which bills they will be covering. Commonly, landlords don't include utility costs within rent payments, except in certain social housing arrangements. Tenants should ensure that all terms regarding payment of utilities are clearly outlined and agreed upon before signing any tenancy agreement.

What the law says

The laws governing tenant responsibilities for utilities in rented accommodation are primarily covered by several key statutes:

These statutes collectively ensure that both parties understand their obligations regarding utility bills and repairs. Landlords are expected to maintain important services, while tenants must pay for them as agreed upon in the tenancy agreement.

How the Renters' Rights Act 2025 changes this

The Renters' Rights Act 2025 significantly altered the situation of tenant-landlord relationships with provisions affecting utilities and bills:

  1. Abolition of Section 21 notices: No longer can landlords evict tenants without a specific reason, which may include non-payment of utility bills.
  2. Periodic tenancies from day one: All new tenancies start as periodic arrangements automatically, making it harder for landlords to enforce strict rules on utilities unless clearly stated in the initial agreement.
  3. Annual rent cap via Section 13: This caps annual rent increases at inflation or a set percentage, affecting how much tenants can spend on overall living costs including utilities.
  4. Decent Homes Standard extended to PRS: Ensures that private rented sector (PRS) properties meet minimum standards for heating and lighting, which impacts utility bills and services.
  5. Awaab's Law extended to private landlords: This ensures fire safety measures are in place, potentially impacting electrical and gas safety checks.
  6. New PRS Ombudsman: Provides a platform for resolving disputes over utilities and maintenance issues.
  7. PRS Database registration: Landlords must register their properties on a central database, which includes information about utility provision and payment obligations.

These changes aim to protect tenants from unfair practices regarding utility bills and ensure that landlords adhere to higher standards of service provision.

What this means for tenants

Tenants now have more rights and protections against unfair practices by landlords concerning utilities. Under the Renters' Rights Act 2025, you're expected to pay only as agreed upon in your tenancy agreement, which should be clear about utility costs. You may also negotiate lower rents or other benefits if you agree to manage certain utilities yourself.

If a landlord fails to provide necessary services like heating and electricity, you can report this under the Decent Homes Standard provisions of the Act. This could lead to enforcement actions against the landlord for non-compliance.

What this means for landlords

Landlords must now adhere more strictly to agreements about utility payments with their tenants. At Utilities and bills, the Renters' Rights Act 2025 prohibits excessive or unfair charges related to utilities unless explicitly detailed in the tenancy agreement from day one. Failure to provide important services can result in complaints under Awaab's Law, which mandates stringent fire safety standards including electrical and gas installations.

Landlords must also ensure their properties meet the Decent Homes Standard, meaning they should be fit for human habitation with adequate heating and lighting facilities.

Common scenarios

Scenario 1: Non-Payment of Bills

A tenant fails to pay utility bills as agreed. The landlord sends a formal notice demanding payment or faces eviction under Section 21 (now abolished). Tenants may negotiate partial payments but must avoid breaching terms set out in their tenancy agreements.

Scenario 2: Overdue Payments and Eviction

When a tenant is unable to pay rent along with utility bills, the landlord sends an eviction notice. Under new laws, this process becomes more stringent since Section 21 has been abolished, requiring specific reasons for eviction.

Scenario 3: Utility Malfunctions

A gas boiler breaks down in winter. The landlord doesn't repair it within a reasonable timeframe. Tenants can report this under Awaab's Law to ensure safety and heating provisions are met promptly.

Evidence tenants should keep

Tenants should maintain thorough records of all utility bills, payments made, and any correspondence with the landlord or utility companies regarding service issues. This includes:

These documents can be important when seeking resolution through the PRS Ombudsman, Housing Ombudsman, or legal proceedings if necessary.

What to do if things go wrong

If you encounter issues with utilities and bills, follow these steps:

  1. Send a complaint letter: First inform your landlord in writing about any problems.
  2. Contact council environmental health: Report unsafe conditions like faulty boilers or electrical hazards.
  3. Deposit Scheme Dispute: If the issue affects your deposit return, contact the relevant deposit protection scheme.
  4. Housing Ombudsman: Submit a formal complaint if local authorities don't resolve issues satisfactorily.
  5. PRS Ombudsman: Use this service to address disputes specific to private rented sector conditions.
  6. First-tier Tribunal: Seek legal intervention through the tribunal for unresolved grievances.
  7. County Court: As a last resort, file a case in court if previous steps fail.

Each step should be taken carefully and with proper documentation.

Common mistakes to avoid

Both tenants and landlords often make these errors when dealing with utilities:

Avoid these pitfalls by staying informed and proactive about your rights and responsibilities.

Where to get help

For assistance with utilities and bills issues, reach out to:

Legal aid may be available for those who qualify, especially in situations involving serious breaches of tenancy agreements or health hazards related to utilities.

Frequently asked questions

Who is responsible for paying utility bills in a rental property?

Tenants are typically responsible for their own utility bills unless specified otherwise in the tenancy agreement or local social housing rules.

Does the Housing Act 1985 cover utilities and repairs?

Yes, it covers repair obligations including ensuring safety of gas and electrical appliances provided by the landlord.

Can tenants install their own energy-saving devices if the landlord doesn't provide adequate heating or lighting?

Under the Deregulation Act 2015, tenants may be entitled to make such improvements but should check with a solicitor for specific terms and conditions.

What happens if a utility company sends bills directly to the landlord's name?

Tenants typically need to update their details with utility providers. Landlords are not usually liable for tenant utilities unless they agree otherwise.

How can tenants ensure they're paying the correct amount for utilities?

Review tenancy agreements and bills regularly, ensuring all charges match agreed terms and rates. Discrepancies should be addressed promptly with the landlord or provider.

What are the common mistakes tenants make regarding utility payments?

Common mistakes include failing to update contact information, misunderstanding who pays what, and neglecting to read meters regularly leading to inaccurate billing.

Where can I escalate issues if my landlord is not addressing faulty utilities?

Tenants may seek assistance from local council housing departments or consider legal action under the Housing Act 2004 for disrepair claims.

How does the Renters' Rights Act 2025 impact utility responsibilities in rental agreements?

The RRA 2025 typically strengthens tenants' rights regarding clarity on utility costs and responsibilities, but specifics may vary by local regulations.