Who is Responsible for Paying Bills in Shared Rentals?

Understanding household bills in shared rentals can be confusing. In England, whether you’re living in a House in Multiple Occupation (HMO), a flatshare, or as a lodger, it’s important to know who is supposed to pay for what — and what to do if things go wrong. This guide explains your rights and responsibilities around utility bills, council tax, and what’s required by law.

How Are Bills Handled in Shared Housing?

Bill payments in shared rentals — including HMOs, house shares or flatshares — depend closely on your tenancy agreement and the property setup. There’s no automatic rule, so it’s essential to check your contract.

• All-inclusive rent: Sometimes, the landlord collects rent that already covers bills (such as gas, electricity, water, internet, and sometimes council tax). This should be made clear in your agreement.
• Separate bills: Otherwise, tenants usually pay utility providers directly. Each tenant might pay a share, or one person collects payments from others and pays the full bill.
• HMOs: For Houses in Multiple Occupation, landlords often include bills, but it’s not guaranteed. HMOs are properties rented by three or more people who are not a family, sharing facilities like kitchens or bathrooms.
• Lodgers: If you live with your landlord as a lodger, bills are typically included, but check your agreement.

Legal Responsibilities: Tenancy Agreements & the Law

Your tenancy agreement is the key legal document here. It should state who pays which bills. Always ask for clarification if anything is unclear before you sign. If your agreement doesn’t specify, talk to your landlord or letting agent for clarification.

Landlords are legally required to provide safe and fit accommodation, but they are not automatically responsible for tenant utility bills or council tax unless the contract says so (Housing Act 1988)[1].

Types of Bills in Shared Rentals

Bills can include:

• Gas and electricity
• Water and sewerage
• Internet and TV licence
• Council tax

Council tax is usually the tenants’ responsibility, but in full HMOs or when all tenants are students, the rules differ (see below).

Council Tax Rules in HMOs and Shared Houses

Who pays council tax depends on the type of rental:

• All tenants are students: The property is exempt. Apply for a council tax exemption from your local council. See the official student council tax guidance.
• Professional or mixed households: Usually, tenants are jointly responsible — unless it’s a HMO where the landlord may be liable per the Council Tax (Liability for Owners) Regulations 1992.
• Lodgers: The live-in landlord pays council tax.

What If a Housemate Doesn’t Pay Their Share?

If all tenants are jointly named on the tenancy, most utility providers can pursue you for unpaid bills, even if another person failed to pay. This is known as joint and several liability. Discuss financial arrangements openly with housemates and keep records of shared payments.

• If each tenant has their own agreement (separate tenancies), you’re only responsible for your own bills.
• Clear written agreements or direct payment to providers can help avoid disputes.

Key Official Forms and What to Do

• Council Tax Exemption Form: Students should use this for exemption or discount. Obtain it from your local council’s website or directly from the university.
  – Apply for council tax exemption for students.
• Form N11M – Application for a Rent Repayment Order: If your landlord fails to pay required bills included in your rent, this form can be used at the First-tier Tribunal (Property Chamber) to claim up to 12 months of rent back.
  – See application details at the official RRO guidance and download form N11M.

For formal complaints or disputes, you can apply to the First-tier Tribunal (Property Chamber), which handles residential tenancy matters in England.

Protecting Yourself: Practical Steps

• Always get written confirmation about who pays each bill.
• Keep receipts or screenshots of all payments made.
• If you’re struggling with energy costs, check if you’re eligible for help through the government’s energy support schemes.
• If a landlord refuses to pay for bills included in your rent, or you suspect unfair charges, seek advice or consider the Form N11M process above.

Being proactive protects your rights and helps prevent financial disputes in shared rental homes.

Frequently Asked Questions

1. Am I responsible for my housemate’s unpaid utility bills?
   If all tenants are named on the tenancy agreement, you are likely to be jointly responsible for the whole bill if a payment is missed. This is called joint and several liability.
2. What if my landlord included bills in my rent but stopped paying?
   You can apply to the First-tier Tribunal (Property Chamber) for a Rent Repayment Order using Form N11M if the landlord was required to pay but did not.
3. Does my landlord have to pay for council tax in an HMO?
   Sometimes, yes. In some HMOs, the landlord is legally liable for council tax. Check your tenancy and the Council Tax (Liability for Owners) Regulations 1992 for details.
4. How do I get a council tax exemption as a student?
   Apply via your local council using a council tax exemption form, often done through your university. Guidance is on the official government site.
5. Who decides disputes about bills in shared homes?
   The First-tier Tribunal (Property Chamber) resolves tenancy and bill disputes between landlords and tenants in England.

Key Takeaways

• Your tenancy agreement is the main source for who pays which bills in shared housing.
• If bills are included in your rent, your landlord must pay them — if not, consider formal action.
• Use official forms and support channels to resolve disputes and protect your rights.

Need Help? Resources for Renters

• Private Renting: Your Rights and Responsibilities (Gov.uk)
• First-tier Tribunal (Property Chamber): Handle tenancy disputes and Rent Repayment Orders
• Find Your Local Council: For council tax, student exemptions, or reporting housing problems
• Shelter England: Renters’ Rights Legal Help

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1. Housing Act 1988, Part I: Official Legislation
2. Council Tax (Liability for Owners) Regulations 1992: Full Regulations
3. First-tier Tribunal (Property Chamber): Tribunal Information

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