What Bills Do Tenants Pay?
A full breakdown of the bills you'll need to budget for as a renter in the UK.
Moving into a new place comes with a lot to sort out, and bills are right at the top of the list. Some are obvious, some catch people off guard, and what’s included in your rent can vary quite a bit depending on your landlord and property type. Here’s a clear breakdown of what you’re likely to be responsible for, and what your landlord covers.
At a glance
- Tenants are usually responsible for council tax, gas and electricity, water, broadband, TV licence, and contents insurance.
- Landlords typically cover buildings insurance and service charges, but always check your tenancy agreement.
- In HMOs and all-inclusive rentals, some bills may be bundled into your rent.
- Monthly bills can vary significantly depending on property size, location, and usage.
- Setting up direct debits from day one keeps things manageable.
What are tenants’ bills?
Here’s a summary of the bills you’ll typically be responsible for as a tenant, along with average monthly costs:
| Bill | Average monthly cost |
|---|---|
| Council tax | £100 to £200 |
| Gas and electricity | £100 to £150 |
| Water | £30 to £50 |
| Broadband | £25 to £50 |
| TV licence | £13.25 |
| Contents insurance | £5 to £20 |
Let’s look at each one in a bit more detail.
Council tax
Council tax is one of your biggest fixed outgoings as a tenant. Rates depend on your council tax band and local authority, so costs vary widely across the UK. You can check your band on the GOV.UK website.
Full-time students are exempt from council tax entirely. If you live alone, you’re entitled to a 25% single-person discount. Some other exemptions and discounts apply depending on your circumstances, so it’s worth checking with your local council.
For example:
A tenant in a Band C property in Manchester might pay around £140 a month in council tax, while someone in the same band in a more expensive borough in London could pay closer to £190. Location makes a real difference.
Gas and electricity
Energy bills are typically your largest variable cost. According to Ofgem, the average household energy bill in the UK for Q2 2026 sits at around £1,641 annually under the price cap, roughly £137 a month. Your actual costs will depend on the size of your home, how energy-efficient it is, and your usage habits.
To keep costs down, consider switching to a competitive tariff, installing a smart meter, and being mindful of usage.
Water
Water bills are set by your regional water company and are based either on meter readings or a flat rate. According to Water UK, the average household water bill in England and Wales is around £460 a year, which works out at roughly £38 a month.
Broadband
Broadband costs vary depending on your provider and the speed of your connection. Budget deals start from around £25 a month, while faster full-fibre packages typically cost £35 to £50. It’s worth checking what’s available in your area before committing. Our guide on when to order broadband for a new house and how to set up broadband in the UK can help you get it sorted without the hassle.
TV licence
If you watch live TV or use BBC iPlayer, you need a TV licence. The current annual cost is £180, which works out at £15 a month. If you only use streaming services like Netflix or Disney+, and never watch live TV or iPlayer, you don’t need one.
Contents insurance
Contents insurance isn’t a legal requirement, but it’s one of the most important things you can take out as a renter. Your landlord’s buildings insurance covers the structure of the property, but it won’t cover your belongings. If your laptop is stolen, your furniture is damaged in a flood, or a fire destroys your wardrobe, that’s down to you without it.
What bills do landlords cover?
Your landlord is generally responsible for the following:
| What landlords cover | Notes |
|---|---|
| Building insurance | Covers the structure of the property |
| Service charges | For leasehold properties |
| Ground rent | If applicable |
| Landlord’s fixtures and fittings insurance | Covers items provided as part of the let |
Some landlords also choose to include certain utilities in all-inclusive rental arrangements. Always check your tenancy agreement carefully to understand exactly what’s covered and what isn’t.
Bills in HMOs and shared rentals
If you’re living in a house in multiple occupation (HMO) or a shared rental, your rent may include some or all utility bills. This is particularly common in student accommodation and short-term lets.
Picture this:
You move into a four-bed HMO where the landlord includes council tax, water, and broadband in the monthly rent. You only need to sort your own energy account and contents insurance. It feels simpler, but make sure the broadband speed and energy allowance are clearly set out in your agreement, otherwise you could be hit with extra charges if usage exceeds what’s included.
Always clarify exactly what’s included before you sign. If something isn’t in writing, don’t assume it’s covered. Our guide on protecting your belongings in shared living spaces is worth a read if you’re moving into a shared property.
Budgeting for tenant bills
Adding up your likely monthly outgoings before you move in helps avoid nasty surprises. Here’s a rough monthly budget guide for a single tenant in a one-bed flat:
| Bill | Estimated monthly cost |
|---|---|
| Council tax (Band B/C) | £120 to £160 |
| Gas and electricity | £100 to £150 |
| Water | £30 to £50 |
| Broadband | £25 to £45 |
| TV licence | £13.25 |
| Contents insurance | £5 to £20 |
| Total estimate | £293 to £435 |
To stay on top of things, set up direct debits for regular payments from day one. If you’re splitting bills with housemates, a joint account or a bill-splitting app can make things much simpler.
Setting up bills when moving in
When you get the keys, here’s what to sort straight away:
- Take meter readings for gas, electricity, and water on the day you move in. Send them to the relevant suppliers to avoid being billed for a previous tenant’s usage.
- Contact utility providers to set up accounts in your name. Check if you want to stick with the existing supplier or switch to a better tariff.
- Arrange broadband early. Installation can take a couple of weeks, so don’t leave it until moving day. Our guide on when to order broadband for a new house covers the timing.
- Register for council tax with your local authority.
- Sort contents insurance before or on the day you move in, so your belongings are covered from the start.
- Redirect your post using Royal Mail’s redirection service so nothing important gets missed.
Before we go
Budgeting for bills is one of the most important parts of renting, and getting it right from the start makes everything a lot smoother. Check your tenancy agreement carefully, set up direct debits early, and make sure you know exactly what’s included in your rent and what isn’t. And don’t overlook contents insurance. It’s one of the smaller bills on the list, but it’s the one that matters most when something goes wrong.
Find out more about what Lemonade’s contents insurance covers and get a quote in as little as 90 seconds.
Tenant bills FAQs
What bills do tenants pay in the UK?
Tenants are typically responsible for council tax, gas and electricity, water, broadband, TV licence, and contents insurance. What’s included in your rent depends on your tenancy agreement, so always check before signing. In some HMOs and all-inclusive rentals, certain bills may be bundled into the monthly rent.
Are bills included in rent?
It depends on the property and the landlord. Some all-inclusive rentals, particularly HMOs and student lets, include certain bills like council tax, water, or broadband. Others don’t include anything beyond the rent itself. Always check your tenancy agreement carefully and confirm in writing what’s covered before you move in.
Do students pay council tax?
No. Full-time students are exempt from paying council tax. If you live in a property where all occupants are full-time students, the property is fully exempt. If you share with non-students, they’ll need to pay, though they may be entitled to a discount. Contact your local council to confirm your situation.
Why do tenants need contents insurance?
Your landlord’s buildings insurance covers the structure of the property, but it won’t cover your belongings. Without contents insurance, you’d be responsible for replacing everything you own if it was stolen, damaged in a fire, or ruined by a flood. It’s one of the most affordable bills on the list and one of the most important.
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