Are Bills Included in Rent Legal in England?

Many renters in England see properties advertised as "bills included" or "all-inclusive rent". But what does this mean legally, and are there protections if you have issues with your landlord about utility or council tax charges? This article breaks down the laws around bills included in rent, your rights, and what to do if problems arise.

Understanding "Bills Included" Tenancy Agreements in England

It is legal for landlords to offer a tenancy where some or all utility bills (like gas, electricity, or water) are included in the rent. However, there are important rules that both landlords and renters must follow under the Housing Act 1988 and related regulations¹. In most cases, these are known as "all-inclusive" or "bills included" tenancies.

• Types of bills commonly included:
  • Gas and electricity
  • Water and sewerage
  • Broadband internet
  • Council tax (less common in joint tenancies)
• The details of which bills are included must be set out clearly in your written tenancy agreement.
• Landlords cannot overcharge you for energy (there are specific limits—see below).

What the Law Says: Can Landlords Include Bills in Rent?

Landlords are allowed to include charges for utilities within the rent under an assured shorthold tenancy. However, there are legal protections under the Tenant Fees Act 2019 that prevent unfair or hidden charges². Any payments for gas, electricity, or water must reflect the actual cost to the landlord. The rent must also not be artificially inflated to avoid the rules on fees.

Maximum Charges for Resold Utilities

If a landlord pays a utility bill and charges the tenant, the amount cannot exceed what the supplier would have charged you directly. This is regulated by the Maximum Resale Price Rules.³

Council Tax and Renters’ Responsibilities

For most private tenants, you are responsible for council tax unless your agreement specifically says the landlord will pay it. In shared houses (Rent a Room Scheme), the landlord often pays the council tax. Check your agreement and ask for clarification if you are unsure.

Action Steps if You Dispute a Bill or "Bills Included" Arrangement

• Ask your landlord for a breakdown of charges and a copy of the utility bills.
• Compare these with what you would pay your supplier directly.
• If overcharged, you can challenge the amount. You have the right to a refund of any overpaid amount.
• Try to resolve the issue directly. If this does not work, you may be able to complain to your local council or apply to a tribunal (see below).

Relevant Forms and Where to Get Help

• Form: Application to the First-tier Tribunal (Property Chamber) – Fees
  When to use: If your landlord charges you prohibited fees or overcharges for utilities, you can apply for a refund or a hearing. For instance, renters can challenge illegal utility mark-ups.
  Official tribunal application guidance and forms.

The First-tier Tribunal (Property Chamber) handles residential tenancy disputes, including cases about rent, charges, or landlord conduct⁴.

FAQ: Bills and Rent in England

1. What does "bills included" mean in my tenancy agreement?
   It means your landlord takes responsibility for paying specified utility bills (such as gas, electricity, or water), and these are covered by the rent you pay.
2. Can my landlord charge me more than the actual cost for utilities?
   No. By law, your landlord cannot charge more for utilities than what the supplier would have billed you directly.
3. Is council tax always included in rent?
   No. Council tax is usually a tenant’s responsibility unless your tenancy agreement says it's included or you live in specific types of accommodation, like a house share run by a resident landlord.
4. How can I challenge an unfair utilities charge?
   First, ask for proof and a breakdown of the charges. If it’s unfair, apply to the First-tier Tribunal (Property Chamber) using the correct form.
5. What should my tenancy agreement say about bills?
   Your agreement should clearly list which bills are covered by the rent and specify who is responsible for any others. If in doubt, ask your landlord for clarification in writing.

Conclusion: What Renters Should Remember

• It is legal for landlords to include bills in rent in England, but only at the actual cost and with clear agreement terms.
• Always check your tenancy agreement for details and, if you are unsure, ask for clarification.
• If you think you’ve been overcharged, you have legal options to dispute it and seek a refund.

In summary, while bills included in rent can offer convenience, you have rights regarding transparency and charges. When in doubt, seek advice or use the official forms and channels provided below.

Need Help? Resources for Renters

• Private Renting Guide (GOV.UK) – Official guidance for private tenants in England
• Council Tax: What It Is and Who Pays (GOV.UK)
• First-tier Tribunal (Property Chamber) – Apply to resolve disputes with your landlord
• Shelter England: Bills Included in Rent
• Citizens Advice: Paying Bills in Shared Housing

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1. Housing Act 1988
2. Tenant Fees Act 2019
3. The Maximum Resale Price of Gas and Electricity (Amendment) Order 1994
4. First-tier Tribunal (Property Chamber)

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