More rental properties offered with bills included amid regional divides
A growing share of rental listings across Britain now include bills in the rent, with significant regional variation. Bills-included options remain a minority nationally but are notably common in the North East and parts of London.
More rental properties are being advertised with utility bills included in the rent, reflecting a shift in landlord offerings and tenant preferences. According to research by LegalforLandlords, bills-included properties account for nearly 15% of rental listings across Britain as of September 2026. However, this figure masks stark regional differences. In the North East, over one-third of rental properties are offered with bills included, while in Scotland the proportion is less than one in ten.
The trend is particularly evident in student accommodation and build-to-rent developments, where landlords use bills-included arrangements to simplify budgeting for tenants or add appeal through all-in-one living packages. The rising energy price cap, set to increase again in October, adds complexity to landlords’ decisions on whether to include bills, as they assume responsibility for fluctuating utility costs.
Regional variation highlights differing landlord approaches
The research shows that London and the South East together account for a significant share of bills-included properties, with London representing 23.9% and the South East 13.2% of all such listings nationally. The North East stands out with 34.4% of rental listings including bills, a much higher proportion than other regions. Conversely, Scotland has the lowest share at 8.6%, indicating that bills-included renting is far less common there.
Sim Sekhon of LegalforLandlords notes that these differences suggest landlords’ approaches to including bills vary considerably by region and market segment. The student rental market has long favoured bills-included options for their simplicity, while build-to-rent developments increasingly use them as a competitive feature. Traditional private landlords, however, face different considerations due to the unpredictability of utility costs and the rising energy price cap.
Implications for landlords and tenants in the current market
For tenants, bills-included renting offers the advantage of simpler budgeting and greater certainty over monthly outgoings. This can be particularly attractive in markets with volatile energy prices or for tenants seeking straightforward rental agreements. For landlords, including bills means taking on the risk of fluctuating utility costs and potentially higher expenses if consumption exceeds expectations.
With the energy price cap set to rise again in October 2026, landlords offering bills-included rentals must carefully assess the financial viability of this model. They need to consider factors such as property energy efficiency, tenant behaviour, and local market expectations. The bills-included model may be more sustainable in communal or managed developments where costs can be spread across many units, rather than in single-let properties.
What landlords should consider amid rising energy costs
Landlords contemplating bills-included arrangements should review their property’s energy performance and consider measures to improve efficiency to mitigate cost risks. Clear communication with tenants about energy use and potential limits may help manage consumption. Additionally, landlords should keep abreast of regulatory changes affecting energy pricing and landlord obligations related to utility billing.
Given the regional disparities, landlords should also evaluate local market norms and tenant expectations. In areas where bills-included renting is less common, offering it may provide a competitive edge or attract certain tenant groups, but it also requires careful cost management. Conversely, in regions with high bills-included prevalence, landlords may need to match such offers to remain competitive.
Legal and regulatory context for bills-included rentals
Currently, there is no specific legislation mandating how bills-included arrangements must be structured, but landlords remain responsible for compliance with all relevant safety and tenancy laws. This includes ensuring accurate and transparent tenancy agreements that clearly state what is included in the rent. Landlords must also consider the impact of any local licensing schemes or energy efficiency standards that may affect their obligations.
As the energy market evolves and government policies on rental standards develop, landlords should monitor updates closely. The rising energy price cap and potential future reforms could influence the attractiveness and feasibility of bills-included renting. Staying informed will be key to managing risks and meeting tenant needs effectively.
Keeping your rental properties compliant with changing energy arrangements
Membership of The Landlord Association (TLA) provides landlords and letting agents with access to up-to-date compliance resources and practical guidance on managing bills-included properties. TLA’s new property management platform, ORBIT, currently in BETA testing, offers tools to organise property records, monitor regulatory developments, and keep evidence of compliance activity related to tenancy agreements and utility billing.
ORBIT’s features under development include document management and recording key actions such as inspections and communications, helping landlords maintain clear records when including bills in rent. Exploring TLA membership can support landlords in adapting to the complexities of bills-included renting and the rising energy price environment.
Landlords should use these resources to review their tenancy documentation, ensure clarity on what bills are included, and prepare for any new obligations arising from energy market changes or local licensing requirements.
Looking ahead, landlords will need to balance tenant demand for simplicity against the financial risks of fluctuating utility costs. Monitoring energy prices, improving property efficiency, and maintaining transparent agreements will be crucial to managing bills-included rentals successfully.
Sources: Landlord Today
TLA - The Landlord Association