London renters pay the price for going all-inclusive

Average rents with bills included have jumped by a staggering £1,022 a month in London since April, according to new research. 

Renters are paying an average of £3,045 per month, a 51% increase on the £2,023 paid in April, while those paying their rent and bills separately are still only forking out £2,781 per month – up from £1,964 – that’s £265 less a month than the average rent for a property with bills included, says lettings agent Benham and Reeves.

In the Spring, the difference between the cost of paying bills and rent in one payment compared to paying rent and bills separately was just £59 a month.

Rental stock

Although only 5% of available rental stock covers the cost of bills within the monthly rent, with rising energy bills, demand is growing and 34% of these have already had a let agreed, up from 26% in April. Availability is at its highest in Brent, where 12% of all listed rental properties include the cost of bills, followed by Hounslow and Barking and Dagenham (10%). 

Out of pocket

Director Marc von Grundherr says the increase in rent isn’t down to savvy landlords trying to offset their own high energy costs, but the reality of the current situation. “However, it’s important for landlords to consider just how much they may be in line to pay should they find themselves with a tenant who plans to work from home this winter, as it could leave them out of pocket even when charging a rental premium to cover the increase in running costs,” he advises.

“At the same time, any landlord who does opt to keep the bills in their name may also find themselves liable should their tenant fail to cover these costs.”