I’ve been writing about renting in the UK for a while now, and one question keeps coming up more than most: “What does ‘bills included’ actually mean?” It sounds simple enough, but the reality is often more complicated than people expect. A tenancy that includes utilities can simplify your monthly budgeting, but it also comes with specific rules and potential pitfalls that many renters don’t spot until it’s too late.
Under the Tenant Fees Act 2019, it is perfectly legal for a landlord to include utility bills in your rent. But the law also sets strict limits on what they can charge. If you’re looking at a flat with “bills included” in the listing, you need to know what you’re agreeing to — and what protections you have if something goes wrong. Here’s what you actually need to know.
What “Utilities Included” Actually Means in Your Tenancy Agreement
The most important thing to understand is that “bills included” is not a blank cheque for your landlord. The Tenant Fees Act 2019 makes it clear that any payment for gas, electricity, or water must reflect the actual cost to the landlord. In other words, they cannot mark up the price and pocket the difference. This is regulated by the Maximum Resale Price Rules, which apply whenever a landlord pays a utility bill and then charges the tenant for it.
What I tend to notice is that many renters assume a “bills included” arrangement is always the simpler option. It can be, but only if the terms are clear. Your tenancy agreement should specify exactly which utilities are covered — gas, electricity, water, broadband, and council tax are the most common. If it doesn’t, ask for clarification before you sign. A vague agreement is a red flag.
Why Getting This Right Matters More Than You Think
The difference between a fair “bills included” deal and one that leaves you out of pocket can be significant. Under the Renters’ Rights Act 2025, tenants now have stronger protections, but those protections only work if you know what you’re entitled to. The Act abolished Section 21 evictions, meaning your landlord can no longer evict you without a specific reason — including disputes over utility payments. It also introduced a Decent Homes Standard for the private rented sector, which requires properties to have adequate heating and lighting.
Consider this scenario: you move into a flat where the landlord says “bills included” but doesn’t put it in writing. Six months later, they start charging you separately for gas. Without a clear agreement, you have little to stand on. On the other hand, if your tenancy agreement states that gas is included and the landlord tries to charge you extra, you can challenge it. My first move would always be to get everything in writing before handing over a deposit.
Where People Go Wrong With Bills Included Tenancies
Most problems with “bills included” arrangements come down to a few common mistakes. Here’s what I see most often — and how to avoid each one.
Not Checking What’s Actually Included
The biggest mistake is assuming “bills included” covers everything. It often doesn’t. Some tenancies include gas and electricity but not broadband or council tax. Others include water but not electricity. Your tenancy agreement must list which bills are covered. If it doesn’t, ask for a written breakdown before you move in. A quick check now can save you months of confusion later.
Paying More Than the Actual Cost
Under the Maximum Resale Price Rules, your landlord cannot charge you more for a utility than the supplier would have billed you directly. If you suspect you’re being overcharged, ask for a copy of the bill. Compare it to what you would pay if you were the account holder. If there’s a discrepancy, you can challenge the amount and apply for a refund through the First-tier Tribunal (Property Chamber).
Ignoring the Council Tax Question
Council tax is a common point of confusion. For most private tenants, you are responsible for paying council tax unless your tenancy agreement specifically says the landlord will cover it. In shared houses under the Rent a Room Scheme, the landlord often pays it. But in a standard joint tenancy, it’s usually on you. Check your agreement carefully — and if you’re unsure, ask. The council tax band for your property will determine how much you owe, so it’s worth understanding before you sign.
Not Keeping Records
If a dispute arises over utility charges, your evidence is everything. Keep copies of your tenancy agreement, any correspondence with your landlord about bills, payment receipts, and meter readings from the day you move in and the day you leave. Without these, challenging an overcharge becomes much harder. A simple folder — physical or digital — can make all the difference.
→ Scroll right to see all columns
| Utility | Commonly Included? | Who Pays Unless Specified? |
|---|---|---|
| Gas and electricity | Yes, in “all-inclusive” tenancies | Landlord (if included in rent) |
| Water and sewerage | Yes, often included | Landlord (if included in rent) |
| Broadband internet | Sometimes | Tenant (unless specified) |
| Council tax | Less common in joint tenancies | Tenant (unless specified) |
How to Handle a Bills Included Tenancy the Right Way
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Whether you’re about to sign a “bills included” tenancy or you’re already in one, there are practical steps you can take to protect yourself. Here’s what I’d do in your position.
Read Your Tenancy Agreement Like a Detective
Your tenancy agreement is the single most important document in this process. Look for a clause that lists exactly which utilities are included in the rent. If it says “all bills included,” that’s a good start, but it’s not enough. Push for specifics: gas, electricity, water, broadband, council tax. If the agreement is vague, ask your landlord or letting agent to clarify in writing before you sign. A clear agreement is your best defence against future disputes.
Ask for a Breakdown of Charges
If your landlord is charging a fixed amount for utilities, you have the right to ask how that figure was calculated. Under the Maximum Resale Price Rules, the charge must reflect the actual cost. A reasonable landlord will have no problem showing you the supplier bills. If they refuse or become evasive, that’s a warning sign. You can also compare the amount to typical usage for a property of that size — if it seems high, question it.
Know Your Rights Under the Renters’ Rights Act 2025
The Renters’ Rights Act 2025 introduced several changes that directly affect utilities. The Decent Homes Standard now applies to private rentals, meaning your property must have adequate heating and lighting. If your landlord fails to provide these, you can report them. The Act also created a new PRS Ombudsman to handle disputes, including those about utilities. And because Section 21 evictions have been abolished, your landlord cannot evict you without a valid reason — even if you dispute a utility charge.
Keep a Paper Trail From Day One
This is the step most people skip, and it’s the one that matters most. Take meter readings on the day you move in and photograph them. Save every email and message about bills. Keep receipts for any payments you make. If a dispute arises, this evidence is what the First-tier Tribunal will look at. A small investment of time now can save you a lot of stress later. A simple document organiser folder can help you keep everything in one place.
- 1Read your tenancy agreement carefullyIdentify which utilities are included. If it’s vague, ask for written clarification before signing.
- 2Ask for a breakdown of chargesRequest copies of supplier bills to confirm you’re not being overcharged. Compare the amount to typical usage.
- 3Know your legal protectionsThe Renters’ Rights Act 2025 gives you stronger rights, including the Decent Homes Standard and access to the PRS Ombudsman.
- 4Keep records from move-in to move-outSave meter readings, payment receipts, and all correspondence. This evidence is crucial if you need to challenge an overcharge.
Frequently Asked Questions
Can my landlord charge me for utilities if they’re not mentioned in the tenancy agreement? ▾
What happens if my landlord refuses to show me the utility bills? ▾
Does the Renters’ Rights Act 2025 affect existing tenancies? ▾
Can I be evicted for not paying utility bills under a bills included tenancy? ▾
Is council tax always included in a bills included tenancy? ▾
The key takeaway is simple: a “bills included” tenancy can be a great deal, but only if you know what you’re signing up for. Read the agreement, ask for clarity, and keep records. The law is on your side, but it only helps if you use it. If this was useful, you might also want to read Understanding Check-Out Fees When Renting an Apartment in the UK.
Sources and Further Reading
UK Landlord Red Flags: Spot Them Before You Sign — A practical guide to spotting warning signs in a tenancy agreement before you commit.
Are Bills Included in Rent Legal in England?. Tenant Rights UK, 2025.
Utilities and Bills: The Position in 2026. The Tenants Voice, 2025.
