NEWS

All-Inclusive Tenancies May Soon Come to an End

With energy bills soaring across the UK, there are signs that 'all-inclusive' tenancies may soon become relics of the past.

According to UK lettings technology specialists Vouch, the number of tenancies advertised with 'bills included' in July was 90% lower than in January. Before the first changes to the Ofcom price cap, numbers dramatically decreased in March.

As tenants sought more control over monthly outgoings, rental contracts with 'all bills included' became increasingly popular this year. For the first time, Rightmove data shows searches for "bills included" have overtaken searches for pets and gardens. It should not be surprising, as additionally, the end of the ban on keeping pets came into life. 

According to Citizens Advice, energy bills are included in the rent of 585,000 households - or 13% of all private renters. There are many new build-to-rent developments and student rentals that offer all-inclusive tenancies.

But the cost of living crisis may change that abruptly.

It comes as the energy price cap, the maximum yearly tariff suppliers can charge households, is set to rise by a staggering 80% to £3,549 in October, as reported by Ofgem.

By having such high utility prices, landlords would need to either increase their rent to cover the cost or stop providing ‘all-inclusive’ tenancies. In either case, the tenants would have to cover those expenses, and it may put them into difficult financial circumstances.