Daniel has just viewed a one-bedroom flat in Manchester advertised at £850 a month — just about within his budget. But before he signs, one question stops him — the same one every first-time renter asks: what bills do you pay when renting, on top of the rent? Council tax? Water? The TV licence? And who arranges what?
He is right to ask. The advertised rent is only the headline — most renters pay several hundred pounds more each month in bills they arrange and pay themselves. This guide covers every bill a UK renter could face, who normally pays each one, what it typically costs in 2026, and what to do on move-in day.
Quick Answer: As a UK renter, you usually pay the rent, council tax, gas and electricity, water and sewerage, broadband, TV licence, contents insurance (your choice) and your mobile phone bill. Your landlord covers buildings insurance and ground rent. Everything else depends on your tenancy agreement — read it before you sign, because it decides who pays what.
Who Decides What Bills Do You Pay When Renting?
Your tenancy agreement does. Under a standard tenancy agreement in England (the traditional assured shorthold tenancy, now giving way to periodic tenancies under the Renters’ Rights Act rollout), the agreement spells out who pays what and which bills are included in the rent. The default position: the tenant pays for the services they use, the landlord pays for the structure of the building.
English law sets boundaries too. Schedule 1 of the Tenant Fees Act 2019 lists the permitted payments, and bills are among them: rent, council tax (paid to the billing authority), utilities (gas, electricity, other fuel, water and sewerage — where the agreement requires them), the TV licence (to the BBC), and communication services such as broadband and landline phone. The crucial rule: landlords must not overcharge tenants for utilities paid separately from the rent — they cannot charge more than the utility company charges them.
Here is the standard split for a typical tenancy:
| Bill | Normally paid by |
|---|---|
| Rent | Tenant |
| Council tax | Tenant (while in occupation) |
| Gas and electricity | Tenant, if the agreement makes them responsible |
| Water and sewerage | Tenant — sometimes included in the rent |
| Broadband/internet | Tenant arranges |
| TV licence | Tenant (rarely included by the landlord) |
| Contents insurance | Tenant’s choice — never the landlord |
| Buildings insurance | Landlord — never the tenant |
| Mobile phone | Tenant |
| Service charges (flats) | Depends on the agreement — often absorbed into the rent |
| Ground rent | Landlord |
If a bill stays in your landlord’s name but you pay towards it, ask for a written breakdown. If the agreement is silent on a bill, Shelter’s advice is that the tenant has to pay it — if it is not clearly the landlord’s, assume it is yours until proven otherwise.
Two related payments confuse renters more than anything else. Ground rent is paid by the leaseholder to the freeholder — as a tenant, that is your landlord’s problem, never yours. Service charges (cleaning, lighting and maintaining communal areas in flats) are the leaseholder’s bill too, but your tenancy agreement may pass them on to you or absorb them into the rent.
Check before you sign: ask your agent or landlord, in writing: “Does this tenancy pass on any service charges to me, and if so, how much are they?” A vague answer is a red flag — get a figure.
Rent: The One Bill Everyone Expects
Rent is the biggest outgoing by far, and it is always yours. Letting agents’ income checks (typically 30 times the monthly rent as a gross annual salary — a ballpark, not a law) look at rent alone, but your real budget must cover rent plus everything in this guide. If your landlord raises the rent later, you have rights — our guide on challenging a rent increase explains the Section 13 process.
Falling behind on rent is treated far more seriously than on a utility bill. If money gets tight, protect the rent first — and read our guide to rent arrears before the situation escalates.
Council Tax: Usually Yours — and Discounts You Might Be Missing
Council tax is normally the tenant’s bill. Whoever occupies the property is liable — which means you — and in a joint tenancy, everyone named is jointly liable for one household bill. The main exceptions are an empty property (the landlord pays) or certain HMO arrangements where the landlord is liable instead.
The 2026/27 England average for a Band D property is £2,392 a year — about £199 a month (MHCLG, published March 2026). Your actual bill depends on your property’s band and your council, and you almost always pay it monthly. Before you wince, check whether you qualify for a discount — many renters never claim one:
| Situation | What you get |
|---|---|
| You live alone (or everyone else is “disregarded”) | 25% off |
| Everyone in the household is disregarded (e.g. all full-time students) | 50% off |
| You are a full-time student, under 18, or a qualifying apprentice | You are “disregarded” — not counted for council tax |
| Your income is low | Council Tax Reduction from your council (means-tested) |
Discounts are not automatic — you must apply, and claiming one you are not entitled to can lead to fines. A first-time renter like Daniel, living alone in a Band A flat, could see the bill drop from around £133 a month to roughly £100 with the single-person discount. For the full breakdown, see our council tax guide for renters.
Gas and Electricity: You Use It, You Pay for It
If your agreement makes you responsible for energy — and most do — you pay the supplier directly. The tenant who pays the bills has the legal right to switch, and your landlord or agent cannot unreasonably stop you, even if the agreement names a “preferred” supplier. Prepayment meter tenants can switch too, though changing the meter itself needs the landlord’s written permission.
The Ofgem price cap for 1 October to 31 December 2026 was announced on 26 August 2026 and rose 4% (about £60 a year, roughly £5 a month):
| Figure | October 2026 cap |
|---|---|
| Typical dual-fuel Direct Debit household | £1,723 a year (~£144 a month) |
| Electricity unit rate | 26.32p/kWh |
| Electricity standing charge | 54.83p/day |
| Gas unit rate | 7.97p/kWh |
| Gas standing charge | 29.68p/day |
Two things matter. First, the cap limits unit rates, not your total bill — use more, pay more. Second, the government removed VAT from domestic electricity bills from 1 October 2026 to 31 March 2027, so the published October cap carries VAT on gas only. (These figures are reported by multiple outlets citing Ofgem — check ofgem.gov.uk for the official figures.)
If your landlord resells energy to you (common in some HMOs and sub-metered blocks), they may only charge what they paid — the Maximum Resale Price rules cap it at the landlord’s own cost. Ask for a cost breakdown if anything looks off. Our energy bills when renting guide goes deeper on switching, meters and tenant rights.
Water and Sewerage: the Bill You Can’t Shop Around For
Water is a regional monopoly — you cannot switch suppliers:
| Billing type | How it works | Typical 2026 cost (illustrative) |
|---|---|---|
| Metered | You pay for what you use | 1-bed flat (60–90 m³): ~£445 a year |
| Unmetered | Fixed charge based on the property’s 1990 rateable value | 3-bed house: ~£505 a year |
| Included in rent | Landlord absorbs it | £0 — check the agreement |
The England and Wales average for 2026/27 is £639 a year — about £53 a month (Water UK), up 5.4% on last year. In Scotland, charges are collected alongside council tax and depend on your band (+8.7% this year); in Northern Ireland, there are no domestic water charges at all.
WaterSure caps metered bills for low-income households with high essential water use — you need a qualifying benefit and either three or more children under 19, or a medical condition requiring extra water. A March 2026 Defra reform widened eligibility to around 300,000 households. Water company social tariffs offer roughly 40% off — apply to your water company directly, as there is no central scheme.
Broadband: Almost Always Your Own Contract
Broadband is the tenant’s job: you choose the provider, sign the contract and pay the bill. Typical household costs in 2026 are £28–£36 a month, and out-of-contract prices can jump 40–50% — never let a contract roll over:
| Speed tier | Typical cost, 2026 |
|---|---|
| Entry fibre (~36 Mbps) | From ~£18 a month |
| Mid-range (60–80 Mbps) | £24–£30 a month |
| Full fibre (300–500 Mbps) | £30–£40 a month |
| Gigabit (900+ Mbps) | £40–£55 a month |
| Social tariff (qualifying benefits) | From £12.50 a month |
One wrinkle for flat-dwellers: full fibre in a block of flats needs the landlord or freeholder’s permission (a “wayleave”), and getting from survey to installation can take several months. Start early — you can kick it off by giving Openreach your landlord’s contact details.
TV Licence: Yes, It’s Probably on You
A TV licence is needed to watch or record live TV on any channel or device, or to use BBC iPlayer — one licence covers everyone at one address, and it is almost always the tenant’s responsibility.
The colour licence fee from 1 April 2026 is £180 a year (about £15 a month), up from £174.50. Concessions: 50% off for blind or severely sight-impaired people (£90), and free licences for over-75s on Pension Credit. It rises again with inflation in April 2027.
Don’t mix this up: the TV licence and the broadband bill are separate things. Paying for a TV package or streaming subscriptions does not cover the licence — but streaming-only households that never watch live TV and never open BBC iPlayer don’t need one at all.
Contents Insurance: Not Compulsory, But Worth Considering
Contents insurance is not legally required in the UK, and your landlord’s buildings insurance will never cover your belongings. That is the key fact most renters miss: the landlord insures the bricks; nobody insures your laptop, bike and clothes unless you do.
Typical renter contents insurance costs £50–£150 a year — Go. Compare puts the average around £74 a year (roughly £6 a month). Many policies also include tenant liability cover, protecting you if you accidentally damage your landlord’s property. Our full renters’ contents insurance guide walks through what to look for.
What Does “Bills Included” Actually Cover?
“Bills included” tenancies are common in HMOs, student lets and some build-to-rent blocks: one monthly figure, and the landlord handles some or all of the bills. But pin down exactly what is included — ask about gas and electricity, water, broadband, council tax and the TV licence individually.
Watch for fair usage caps: many agreements include an energy allowance, and you pay extra if you go over it. Your landlord cannot charge you more for separately-billed utilities than the utility company charges them. The trade-off is real: simpler budgeting, but usually a premium over arranging bills yourself — and you lose the ability to switch suppliers or claim social tariffs.
Move-In Day: Your Bills Action Checklist
Ten minutes on move-in day can save months of arguments:
| # | Action | Why it matters |
|---|---|---|
| 1 | Photograph all meter readings (gas, electricity, water if metered) | Proves where your usage starts — protects you from the last tenant’s bill |
| 2 | Contact the energy and water suppliers to open accounts | Bills in your name from day one; ask about social tariffs if you qualify |
| 3 | Set up Direct Debits | Usually the cheapest tariff type; avoids missed-payment penalties |
| 4 | Register for council tax with your local council | You are liable from move-in day; discounts must be applied for |
| 5 | Order broadband | Flats can take weeks or months for full fibre — start early |
| 6 | Check the EPC of the property | Shows the estimated yearly cost of heating, hot water and lighting |
| 7 | Sort the TV licence | One per address; check whether the landlord already covers it |
| 8 | Get a contents insurance quote | Cover your belongings from the day you move in |
Repeat step 1 when you move out. Meter readings at both ends are Ofgem’s top tip for tenants — and your best protection against billing disputes.
The EPC is a budgeting tool, not just a legal document. Landlords must show you a valid Energy Performance Certificate before the tenancy starts (they are valid for 10 years). It includes an estimated yearly energy cost for heating, hot water and lighting — a rough guide to what your energy bills might look like. The minimum standard for renting out a home in England and Wales is an E rating.
Adding It All Up: What the Bills Really Cost
Time to put numbers on what bills you pay when renting. Below are three fully worked, fictional budgets built from the real 2026 averages in this guide — rounded and clearly illustrative. Your mobile phone contract (typically £10–£30 a month) is not a housing bill, but it competes with your bills for the same pay packet, so it belongs in the budget too.
Daniel — Manchester, first-time renter, one-bed flat, lives alone.
- Rent: £850
- Council tax (Band A, 25% single-person discount): ~£100
- Gas and electricity: ~£110 (single-person usage, below the typical household figure)
- Water (metered, 1-bed): ~£37
- Broadband: ~£25
- TV licence: £15 (£180 a year ÷ 12)
- Contents insurance: ~£5
- Mobile phone: ~£12
- Total: ~£1,154 a month — £304 on top of the rent.
Chloe — London, sharer in a four-bedroom house with three friends.
- Room rent: £800
- Council tax (Band C, ~£177 a month ÷ 4): ~£44
- Gas and electricity (~£200 a month ÷ 4): ~£50
- Water (~£53 a month ÷ 4): ~£13
- Broadband (~£30 ÷ 4): ~£8
- TV licence (£180 a year ÷ 4 ÷ 12): ~£4
- Contents insurance: ~£6
- Mobile phone: ~£15
- Total: ~£940 a month — £140 on top of the room rent.
Sam — Bristol, family of four, three-bed house.
- Rent: £1,500
- Council tax (Band D average): ~£199
- Gas and electricity (typical household): ~£144
- Water (3-bed house): ~£42
- Broadband: ~£30
- TV licence: £15
- Contents insurance: ~£8
- Two mobile phones: ~£50
- Total: ~£1,988 a month — £488 on top of the rent.
| Household | Rent | Bills on top of rent | Total monthly cost |
|---|---|---|---|
| Daniel (Manchester, 1-bed, solo) | £850 | ~£304 | ~£1,154 |
| Chloe (London, sharer) | £800 | ~£140 | ~£940 |
| Sam (Bristol, family, 3-bed) | £1,500 | ~£488 | ~£1,988 |
Now the affordability check. The official ONS line is that private rent is “affordable” at 30% of median household income or below. (You will see “~35%” quoted for rent-plus-bills in some guides, but that is a rule of thumb, not an official figure.) For Sam’s £1,500 rent, the 30% line implies roughly £60,000 of gross household income before bills are even counted — which is why you must budget rent and bills together. Run your own numbers through our rent-to-income ratio calculator; the agent’s 30-times-monthly-rent income test looks at rent alone, so passing it does not mean the full budget works.
Struggling With Bills? Where to Get Help in 2026/27
If the numbers above make you wince, more help is available than most renters realise:
| Scheme | What you get | Key details for 2026/27 |
|---|---|---|
| Warm Home Discount | £150 off your electricity bill | England and Wales: automatic if you were the billpayer by 23 August 2026 and get a qualifying means-tested benefit. Scotland: expanded automatic eligibility (~345,000 households). Not available in NI (the Affordable Warmth Scheme applies instead) |
| Crisis and Resilience Fund | Help with food, energy, water and phone/broadband bills | Replaces the Household Support Fund, which ended on 31 March 2026. Runs April 2026–March 2029 via local councils — apply to your council; not limited to benefit claimants |
| WaterSure | Caps your metered water bill | For low-income households with high essential water use; eligibility widened in a March 2026 reform |
| Water social tariffs | Around 40% off your water bill | Apply to your water company directly |
| Broadband social tariffs | From £12.50 a month | For Universal Credit and Pension Credit households |
| Energy supplier schemes | Varies — ask | Suppliers run their own hardship funds and social tariffs |
One correction, because outdated advice is everywhere online: the Household Support Fund ended on 31 March 2026 — any guide still listing it as current is out of date. Its replacement, the Crisis and Resilience Fund, is administered by councils and you apply to your local council. If you receive Universal Credit, also check how the housing element affects your rent budget.
Is It Different in Scotland, Wales or Northern Ireland?
Yes — the main differences if you are renting outside England:
| Nation | Key differences for renters |
|---|---|
| Scotland | Water and sewerage charges are collected alongside council tax, billed to the occupier based on their council tax band (+8.7% in 2026/27). Tenants have long-standing protection from letting fees under Scottish law. |
| Wales | Council tax works much like England (2026/27 Band D average £2,283, +5.2%). Fee rules mirror England’s under the Renting Homes (Fees etc.) (Wales) Act 2019. |
| Northern Ireland | No council tax — domestic rates instead. There are currently no domestic water charges. The Warm Home Discount does not apply (the Affordable Warmth Scheme does). |
The rest of this guide is written with England in mind, but the checklist logic — the agreement decides, and the tenant pays for what they use — holds everywhere.
Who pays council tax when renting — the tenant or the landlord?
The tenant, in almost all cases. Whoever occupies the property is normally liable, and joint tenants are jointly liable for one household bill. The landlord pays only in specific situations — mainly an empty property or certain HMO arrangements. Discounts must be applied for; they are not automatic.
Do tenants have to pay water bills in the UK?
Usually, yes — either directly to the water company or as part of a “bills included” rent. You cannot switch water supplier (it is a regional monopoly): you will be on either a metered tariff (pay for what you use) or an unmetered fixed charge. In Northern Ireland there are currently no domestic water charges at all.
Do I need a TV licence if I rent?
Yes, if you watch or record live TV on any channel or device, or use BBC iPlayer. It is almost always the tenant’s responsibility, and one licence covers everyone at your address. From 1 April 2026, the colour licence costs £180 a year. Streaming-only households that never watch live TV and never open iPlayer don’t need one.
Who pays gas and electricity — the tenant or the landlord?
The tenant, where the tenancy agreement makes them responsible — which is the standard arrangement. You pay the supplier directly and have the legal right to switch suppliers. If your landlord resells energy to you (for example in a sub-metered block), they may only charge what they paid.
Is contents insurance compulsory for tenants?
No — it is not legally required. But your landlord’s buildings insurance never covers your belongings, so without your own policy you have no cover for theft, fire or damage. Typical renter policies cost £50–£150 a year — one of the cheapest bills on this list.
Who pays service charges — the tenant or the landlord?
Service charges are legally the leaseholder’s bill, which means your landlord — but your tenancy agreement may absorb them into the rent or pass them on as a separate charge. Always ask for the exact figure in writing before you sign. Ground rent is never the tenant’s bill.
Can my landlord stop me from switching energy supplier?
No — not if you are the one paying the bills. Ofgem’s rules give tenants the legal right to switch, and landlords or agents cannot unreasonably prevent it. You only need the landlord’s written permission to change the meter itself (for example, swapping a prepayment meter for a credit meter).
Do I have to pay for broadband when renting?
Yes — broadband is almost always the tenant’s own contract. Typical costs in 2026 are £28–£36 a month, with social tariffs from £12.50 for households on Universal Credit or Pension Credit. Moving into a flat? Order early: full-fibre installation in blocks needs the landlord’s permission and can take months.
What help is available with bills for renters in 2026?
The Warm Home Discount (£150 off electricity in winter 2026/27), the Crisis and Resilience Fund (council-administered help with food, energy, water and phone bills — it replaced the Household Support Fund, which ended in March 2026), WaterSure caps, water company social tariffs, and broadband social tariffs from £12.50 a month. Start with your council and your suppliers.
If my rent is “bills included”, does that cover council tax too?
Not necessarily — “bills included” means whatever the tenancy agreement says it means, so ask for the exact list: gas, electricity, water, broadband, council tax, TV licence. Watch for fair usage caps on energy, and remember your landlord cannot charge you more for separately billed utilities than the utility company charges them.
Should I take meter readings when I move in?
Yes — photograph your gas, electricity and (if metered) water readings on move-in day, and again when you move out. It is the best protection against being billed for someone else’s usage, and it is Ofgem’s top tip for tenants. Send the move-in readings to your suppliers when you open your accounts.
How much are bills on top of rent in the UK?
As a rough 2026 guide: a solo renter in a one-bed flat might pay £200–£300 a month on top of rent, a sharer splitting bills £100–£150, and a family in a three-bed house £400–£500 or more. The worked examples above (Daniel ~£304, Chloe ~£140, Sam ~£488) show how household size and property type drive the total.
Final Thoughts
Before you commit, do three things: read the tenancy agreement’s bills clauses line by line (our tenancy agreement guide shows what to look for), run the full budget through our rent affordability rules guide so you are budgeting rent and bills, and take meter readings on day one.
And if the total is more than the flat can justify, the rent itself is sometimes movable — our guide to negotiating rent is worth a read before you sign.
Further Reading
- Who has to pay council tax — GOV.UK — the official hierarchy of liability for England and Wales.
- Utility bills and your rights as a private tenant — Shelter England — what happens when bills are in your name, in your landlord’s name, or included in rent.
- TV licence fee set for 2026/27 — GOV.UK — the official announcement of the £180 fee.
