When a tenant moves in or out, the utility accounts have to move with them — and if that handover is sloppy, the person who ends up with the unpaid bill is often you, the landlord. The good news is that the rules are clearer than most landlords think. Gas, electricity and water accounts follow the named account holder, not the bricks and mortar, so the key to protecting yourself is making sure the right name is on each account from day one.
This guide sets out exactly who is responsible for transferring utility bills for new tenancies — gas, electricity, water and council tax — what the law says when a property sits empty, and the simple steps that stop a departing tenant’s debt from landing on your doormat. It applies to residential lettings in England and Wales; Scotland and Northern Ireland differ on some council tax and tenancy points.
Key Takeaways
- Utility accounts follow the named account holder. If the tenant is the account holder and your tenancy agreement makes them responsible, their unpaid gas and electricity debt is theirs — not yours.
- The moment a property is empty (a “void”), a “deemed contract” under the Gas Act 1986 and Electricity Act 1989 makes the owner liable for supply used, so voids cost you.
- Water is different: the tenant (as occupier) is normally liable even if the tenancy says otherwise, but many water companies can pursue the landlord unless you notify them of the tenant’s name promptly.
- Council tax follows a legal “hierarchy of liability”: the resident tenant pays while they live there; you (the owner) pay during voids and for most HMOs.
- Take dated meter readings at every check-in and check-out and notify suppliers in writing — it is your single best defence against a billing dispute.
- From 1 May 2026 the Renters’ Rights Act 2025 converts tenancies to periodic assured tenancies, but the tenant remains responsible for utilities and council tax while they are resident.
The short answer: who is responsible for utility bills?
In the great majority of tenancies, the tenant is responsible for transferring and paying the utility bills — gas, electricity, water, council tax, broadband and TV licence — from the day their tenancy starts. That is because two things line up: the tenancy agreement makes them responsible, and the accounts are put into their name.
But “the tenant pays” is only true if you have actually done your part. A landlord who never transfers the accounts, leaves supplies in their own name, or fails to record meter readings can find themselves argued into paying for someone else’s usage. Responsibility is shared in practice: the tenant does the paperwork, and you make it possible and prove the handover happened.
What the law actually says
Three separate legal regimes govern the four main household bills. Knowing which is which is what keeps you on the right side of a dispute.
Gas and electricity: the “deemed contract”
Where energy is supplied to a property without a written contract in place, the Gas Act 1986 and the Electricity Act 1989 create a “deemed contract” between the supplier and whoever is occupying the property — or, if it is empty, the owner. Ofgem’s guidance is that gas or electricity has to actually be consumed for a deemed contract to arise.
In plain terms: while your tenant lives there and holds the account, their energy debt is theirs. But the day they move out and the property becomes a void, the deemed contract falls to you as owner, and you pay for any standing charges and usage until a new tenant takes over the account. Deemed-contract rates are usually higher than a fixed deal, so it is worth contacting the supplier promptly.
Water and sewerage: the occupier pays, but you can be chased
Water works differently. Under water companies’ charges schemes (made under the Water Industry Act 1991), the occupier — your tenant — is normally liable for water and sewerage charges, even if your tenancy agreement says you will pay them. However, many companies’ schemes let them hold the landlord jointly liable for a tenant’s unpaid water charges unless you tell them who the new occupier is, usually within a set period. The practical lesson: notify your water company of every tenant’s name and move-in date in writing.
If you provide water as part of an inclusive rent and recharge tenants for it, the Water Resale Order 2006 caps what you can charge to the amount the water company charges you, plus a small permitted admin allowance. Overcharging is recoverable by the tenant with interest, so keep it at cost.
Council tax: the hierarchy of liability
Council tax liability is decided by a statutory “hierarchy of liability” set out in the Local Government Finance Act 1992. A resident with a tenancy sits above a non-resident owner, so while a tenant lives in the property, the tenant pays council tax. When the property is empty, liability moves back up the hierarchy to you as owner.
The important exception is houses in multiple occupation (HMOs). Where tenants rent rooms on separate agreements, the owner is liable for council tax, not the tenants — so this is usually built into the rent. Since 1 December 2023, most HMOs are also required to be banded as a single dwelling, which stopped the old practice of banding each room separately.
Your tenancy agreement is the starting point
Every well-drafted tenancy agreement should state clearly which bills the tenant is responsible for — typically gas, electricity, water, council tax, broadband and the TV licence — and confirm they must put the accounts in their own name. A clear clause does not just avoid arguments; it is the document you rely on to prove to a supplier that the tenant, not you, was the responsible party for a given period.
Decide upfront which model you are running: bills paid directly by the tenant (the default for most self-contained lets), or a bills-inclusive tenancy where you keep the accounts and build the cost into the rent. Each has trade-offs, and the agreement must match reality.
Step-by-step: transferring utilities at the start of a tenancy
A tidy check-in routine takes fifteen minutes and prevents almost every billing dispute. Work through this checklist on move-in day:
- Take dated meter readings for gas, electricity and (if metered) water, ideally photographed with the tenant present.
- Tell the existing energy supplier the tenant’s name, the move-in date and the opening readings, so your void account is closed and theirs opens.
- Notify the water company of the new occupier’s name and the start date — this is what removes your residual liability.
- Notify the local council that the tenancy has started so council tax transfers to the tenant (give the council the tenant’s name and the date).
- Record the meter serial numbers and readings in your inventory or check-in report, signed or acknowledged by the tenant.
- Give the tenant a “utilities” welcome note listing the current suppliers, meter locations and the fact that they are free to switch providers.
Remember that a tenant who holds the account is entitled to switch supplier whenever they like — you cannot lock them to your preferred provider, and it is common for tenants to switch more than once during a tenancy. Set up rent collection cleanly too; a reliable direct debit or standing order for the rent keeps the whole arrangement predictable.
When the bills stay in the landlord’s name
Some landlords deliberately keep utilities in their own name — common with HMOs, short lets, room-in-my-home arrangements and student houses where an all-inclusive rent is a selling point. It is a legitimate model, but the liability sits squarely with you: if a tenant leaves without settling their share, the supplier looks to you, because you are the account holder.
If you run bills-inclusive lets, protect yourself by pricing in a realistic usage buffer, considering a fair-usage cap in the agreement, and keeping the Water Resale Order cap in mind when recharging water. And never assume a tenant has moved an account into their name just because they said they would — confirm it directly with the supplier.
End of tenancy and void periods
The end of a tenancy is where costs quietly land on landlords. As soon as the property is empty, every account reverts to you. Take final meter readings on the check-out date, notify every supplier and the council in writing, and keep the confirmation.
| Bill | While tenant is resident | During a void (empty property) |
|---|---|---|
| Gas & electricity | Tenant (account holder) | Landlord/owner — deemed contract |
| Water & sewerage | Tenant (occupier) | Landlord/owner |
| Council tax | Tenant (resident) | Landlord/owner (subject to any local discount) |
| Broadband / TV licence | Tenant | Landlord only if they keep a service running |
Two void-period costs catch landlords out. First, most councils have scrapped the old empty-property grace period, so council tax is often payable from day one of a void. Second, since April 2024, English councils can apply an empty homes premium: up to 100% extra council tax once a home has been empty for one year, rising to 200% after five years and 300% after ten. The clear message is to minimise voids — our guide to reducing void periods covers this in depth.
An empty property still needs its heating ticking over. Leaving it cold invites damp and mould and, in winter, frozen or burst pipes — far more expensive than the modest energy cost of a frost setting. A little kit makes voids cheaper to run and monitor.
Useful kit for managing an empty property
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- Smart thermostat — hold a low frost-protection temperature and check it from your phone without visiting the property.
- Tubular frost heater — cheap, low-wattage background heat that keeps pipes above freezing during a winter void.
- Plug-in energy monitor — see exactly what a void is costing you so deemed-contract charges never surprise you.
- Smart plug — switch a heater or dehumidifier on and off remotely between viewings.
Common mistakes landlords make
- Leaving accounts in your own name “for convenience.” This is the single biggest cause of landlords paying tenants’ bills. Transfer them properly.
- Skipping meter readings. Without a dated opening reading you cannot prove where the tenant’s usage began, and disputes go against the party with no evidence.
- Forgetting the water company. Tenants often overlook water because it can feel invisible; notify the supplier of the occupier yourself.
- Not telling the council promptly. A late notification can leave a void’s council tax attributed to the wrong period.
- Assuming the tenant did it. Verify the transfer with each supplier rather than taking a tenant’s word.
How the Renters’ Rights Act 2025 changes things
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025, and the new tenancy system takes effect from 1 May 2026, when existing assured shorthold tenancies convert to periodic assured tenancies with no fixed end date. This does not change who pays the bills: a resident tenant remains responsible for utilities and council tax throughout their tenancy.
What it does change is turnover patterns. With tenants able to leave on two months’ notice at any point, you may see more frequent check-outs — which makes a disciplined meter-reading and account-transfer routine more valuable than ever. Build the handover checklist above into your standard end-of-tenancy process.
Conclusion
For new tenancies, the tenant is responsible for transferring and paying utility bills whenever the accounts are in their name and the tenancy agreement says so — which is exactly why getting those two things right at check-in matters so much. Your job is to make the transfer easy, prove it happened with dated meter readings and written notifications, and pick up the accounts cleanly during voids.
Do that consistently and unpaid-bill surprises all but disappear. Treat every check-in and check-out as a mini utilities audit, keep the paper trail, and you will protect both your cash flow and your relationship with the people renting your property.
Written by the Landlords Portal team, drawing on UK utility, water and council tax rules current as of July 2026. This article is general information for landlords, not legal or financial advice; check your own tenancy agreement and supplier terms, and take professional advice on specific disputes.
Frequently Asked Questions
Whose responsibility is it to transfer utility bills for a new tenancy?
The tenant is responsible for transferring gas, electricity, water and council tax into their name and paying them, provided the accounts are in their name and the tenancy agreement makes them responsible. The landlord’s role is to facilitate the transfer — giving meter readings and supplier details — and to notify the water company and council of the new occupier.
Is a landlord liable for a tenant’s unpaid utility bills?
Not if the account was in the tenant’s name throughout — the debt belongs to the account holder. A landlord becomes liable when the supply is left in their own name, or during void periods, when a deemed contract under the Gas Act 1986 and Electricity Act 1989 makes the owner responsible for any energy used.
Who pays the water bill in a rented property?
The tenant, as occupier, is normally liable for water and sewerage charges even if the tenancy says otherwise. But many water companies can pursue the landlord for a tenant’s unpaid water unless they were told the occupier’s name, so landlords should always notify their water company of each new tenant.
Who pays council tax during a void period?
The landlord or owner. Council tax follows a hierarchy of liability: a resident tenant pays while living there, but liability reverts to the owner once the property is empty. Most councils no longer offer an empty-property grace period, and an empty homes premium can add up to 100% after one year.
Can a tenant switch energy supplier during the tenancy?
Yes. A tenant who holds the energy account has the right to switch supplier whenever they choose, and it is common for them to do so more than once. Landlords cannot tie a tenant to a particular provider, though a tenancy can reasonably require the supply to be returned to a working, credit account at the end.
What meter readings should I take at check-in and check-out?
Take dated readings for gas, electricity and any metered water at the start and end of every tenancy, ideally photographed with the meter serial number visible and acknowledged by the tenant. These readings are your evidence for closing your void account and opening the tenant’s, and for resolving any later dispute.
Does the Renters’ Rights Act 2025 change who pays the bills?
No. From 1 May 2026 tenancies become periodic assured tenancies, but a resident tenant remains responsible for utilities and council tax throughout. The main practical effect is potentially more frequent turnover, which makes a disciplined account-transfer routine even more important.
