link to ringley website
  • Home
  • About Us
    About us & leadership Awards Savings for Clients Case Studies Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • Our Services
    • Asset Management
      • UK Asset Management
      • Project Monitoring
      • ESG Consultancy & Implementation
      • PropTech & Living Sectors Platform
      • Marketing Insights
      • Resident Journey
      • Stabilised Assets
      • UK Build to Rent
      • UK Later Living
      • UK Co-Living
      • UK Student Accommodation
      • UK Single Family Housing
    • Block Management
      • Overview - London
      • Overview - Wales & West
      • Overview - Southwest
      • Right to Manage
      • Freehold Management
      • Resident Management
      • Estates of Houses
      • Ground Rent Collection
      • How to change agent?
      • Block Management Services
      • Can't afford an agent?
      • Legal & Tribunals
      • Top 10 Tips
      • Report an incident
    • Commercial Management
    • Law
      • Overview
      • Meet The Team
      • Recommendations
      • Right to Manage
      • Lease Extensions
      • Freehold Purchase
      • Absentee Freeholder
      • Court Appointed Manager
      • Conveyancing - Wales
      • Conveyancing - England
      • Service Charge/Rent Arrears Recovery
      • Company Secretary
    • Property Valuations
      • Overview
      • Loan Security
      • Company Accounts
      • Lease Extensions
      • Freehold Purchase
      • Rent Reviews
      • Ground Rent Investment
      • Development Valuations
      • Expert Witness & Litigation
      • Tax, Trusts & Accounts Valuations
      • Trading Business
      • Compulsory Purchase
      • Residential Valuations
    • Engineering
      • Overview
      • EWS1 Consultancy
      • Asbestos
      • Contract Administration
      • Fire Assesment
      • Homebuyer Survey
      • Building Survey
      • Schedules
      • Party Wall Matters
      • Principle Designer
      • Disability Access Audits
      • Small Building Works
      • Fire Door Inspection
      • Insurance Valuations
    • Property Accounting
      • Finance
      • Quote For Service Charge Accounts?
      • Property Accounting Law
      • Accounting Updates
      • To Audit or Not?
    • Plant & Facilities Management
      • Plant & Facilities Management
      • Fire Door Inspection APP
      • Fire Safety Update
    • Site Staffing Solutions
      • Ringley Integrated Site Staff Solutions
    • Leasehold Guidance
      • Overview
      • Right to Manage
      • Purchasing The Freehold
      • Court Appointed Manager
      • Absentee Freeholder
  • Insights
    Asset Management Articles Block Management Blogs Publications BTR Rental Market Blogs Customer Insights FAQ - Ask Our Experts Insurance Calculator
  • Get In Touch
  •    
  • Work with us
  •  
  • Portal Login
Prospects of Rising Energy Costs Drive UK Renters to Look for Bills-included BTR

Written by: Ian Barbar 01/12/2022
  594       0
Responsive image

Prospects of Rising Energy Costs Drive UK Renters to Look for Bills-included BTR

Currently, the Built-To-Rent sector is experiencing a tsunami of tenants looking for homes with bills-included rents. Bills-included topped the search terms in the property sector a couple of months ago. Private and institutional landlords operating in the BTR sectors must consider this as an opportunity to explore ways to help tenants meet their needs.

Bills-included is a common strategy in the UK for student accommodation. In the general private-rented sector, the growth of tenants asking for the bills-included feature is a new and fascinating development

Cons

  1. Excess payment - The bills-included rent package may result in the tenant paying for utilities that they do not consume for example if they are away a lot or simply use use less.
  2. Losing control over expenditure - Tenants have no control over reducing utility expenses by optimizing consumption, as they must pay the fixed amount built into the rent.
  3. No flexibility - An all-inclusive rent deprives the tenant of the freedom to switch service providers or install energy-efficient appliances to reduce bills.

The landlord's perspective

Providing the bills-included facility is the most attractive way to enhance the marketability of a property because it is the most sought-after feature among tenants right now.

Landlords with resources to manage utility bill payments, install energy-saving appliances, and optimize bills by switching suppliers should seriously consider offering an all-inclusive rent option. As the tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent industry grows up and smart tech becomes more connected increasingly funding applications will require scrutiny of the investors operational track record. This means not only the traditional BMS 'building maintenance system' is required but also a BOS 'building operations system', the later gives the front desk controlles via addressable load of an array of zones, systems and components around the building all designednto reduce operational carbon and drive user behaviour.

Given time the tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent industry will crack the age old view that if tenants are not responsible for paying their bills, they will simply behave recklessly with utilities. Given the insulating properties of quality tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent stock built today vis-a-vie that of 50 or 100 years ago, (which due to the energy efficiency of the home reduces this risk anyway) those that still hold that view need to remember that unlike when they grew up from as young as the very first year in primary school energy saving is being engrained into our youth. Those still skeptic just need to count thr number of millenials and Gen Z walking around with their own personal water carriers or insulated coffee mugs compared to any other age group.

The November 2022 budget forces everyone to make sacrifices despite assurances by Rishi Sunak to show compassion and fairness to all. There is a possibility he will considering a stamp tax system that will impact commercial properties and shares.

The rising cost of living - the main driver of the trend

The rising cost of living - the main driver of the trend

The fact that tenants are struggling to evade a steep rise in energy bills is clear from a few trends. Firstly, that they are reluctant to move to a new tenancy - as by staying put they are more likely to be able to negotiate a limited rent increase as opposed to potentially paying the new market rent. Put simply doing a deal may be cheaper than letting the landlord test the market or having to out bid others on an alternative property given the shortage of supply.

Secondly, the search for rental homes that offer all-inclusive rent options has increased exponentially.

Secondly, the search for rental homes that offer all-inclusive rent options has increased exponentially.

Most renters exploring bills-included tenancies have genuine concerns about the skyrocketing cost of living, including the impending rise in energy bills. Given the energy price cap only lasts till March 2023 who knows what will happen next. Switching to a purpose tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent property also comes with the guarantee of lower bills due to the energy efficiency of tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent homes, A*** appliances, double or triple glazing and great thermal insulation. Having personally lived in a tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent property at Angel Gardens in Manchester (which is Moda Living's flagship development), I can vouch for the fact that even when it was snowing outside the peoperty was still warm and comfortable without bothering to put the heating on - not something I expected in the UK. In such situations it is a win win for the Build to Rent developer to consider a 'bills-included rent' particularly if smart tech is introduced to prevent scenarios such as residents leaving heating full on then opening the windows! Or temperature limiters to prevent heating an apartment when the ambient temperature is at a reasonable level as is not unknown in the hotel industry.

Rents are consistently higher in the UK because of the shortage of rental properties and rising demand. The average monthly rent outside the capital witnessed a steep rise of 19 percent over the pre-pandemic period. A bills-included apartment may insulate tenants against the prospect of paying higher rents that strain their monthly budgets. Arguably right now renters increasingly prefer bills-included features to any other facility in a BTR home. The growth in enquiries for bills-included tenancies compared with last year stands over 36 percent.

Pros and cons of homes with all-inclusive rents

Pros and cons of homes with all-inclusive rents

The most visible benefit of considering an all-bills included apartment is the residents ability to control their budget by streamlining and reducing the number of monthly bill payments they need to make. Further bills-included takes the 'variable' nature inherent with utilities away and acts as an energy/water industry hedge. Bills-included also gets rid of the pain of signing up to multiple utility providers. Bills-included totally removes the risk of late payment penalties and surcharges that may impact credit scores. Bills-included eliminates the risk of ransom out of contract rates being charged by utility companies.

From the landlord perspective, bills-included is an opportunity to factor in energy use, whilst buying bulk at a discount. It is an opportunity to omit some components and reduce construction costs. It is a super opportunity to promote and differentiate purpose built Build to Rent stock from a leaky victorian flat where a landlord simply could not risk including bills as with current energy pricing in some areas the cost of bills is about to match the rent!

The renter must check the rental contract

There are different levels of 'bills-included' so the rentee should check their rental contract thoroughly before signing on the dotted line. Few BTR properties include everything. So the question as to what is or is not included needs to consider council taxes, energy bills, water bills and internet consumption.

Pros

Pros

  1. Convenience - An all-inclusive rent helps tenants reduce the hassles of managing several payments or hunting for different suppliers.
  2. Certainty of expenditure - The bills-included rental home facilitates better budget control as there is no uncertainty about utility bill payments.
  3. Immunity against rising energy bills - Most tenants consider it the most vital benefit of all-inclusive rents.

Cons

Cons

  1. Excess payment - The bills-included rent package may result in the tenant paying for utilities that they do not consume for example if they are away a lot or simply use use less.
  2. Losing control over expenditure - Tenants have no control over reducing utility expenses by optimizing consumption, as they must pay the fixed amount built into the rent.
  3. No flexibility - An all-inclusive rent deprives the tenant of the freedom to switch service providers or install energy-efficient appliances to reduce bills.

The landlord's perspective

Providing the bills-included facility is the most attractive way to enhance the marketability of a property because it is the most sought-after feature among tenants right now.

Landlords with resources to manage utility bill payments, install energy-saving appliances, and optimize bills by switching suppliers should seriously consider offering an all-inclusive rent option. As the tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent industry grows up and smart tech becomes more connected increasingly funding applications will require scrutiny of the investors operational track record. This means not only the traditional BMS 'building maintenance system' is required but also a BOS 'building operations system', the later gives the front desk controlles via addressable load of an array of zones, systems and components around the building all designednto reduce operational carbon and drive user behaviour.

Given time the tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent industry will crack the age old view that if tenants are not responsible for paying their bills, they will simply behave recklessly with utilities. Given the insulating properties of quality tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent stock built today vis-a-vie that of 50 or 100 years ago, (which due to the energy efficiency of the home reduces this risk anyway) those that still hold that view need to remember that unlike when they grew up from as young as the very first year in primary school energy saving is being engrained into our youth. Those still skeptic just need to count thr number of millenials and Gen Z walking around with their own personal water carriers or insulated coffee mugs compared to any other age group.

The November 2022 budget forces everyone to make sacrifices despite assurances by Rishi Sunak to show compassion and fairness to all. There is a possibility he will considering a stamp tax system that will impact commercial properties and shares.



Property Management Block Management Building Safety
POPULAR POSTS

Solar panels on flats - what you need to know

Is noise getting you down?

Ground Rent: Fines for Landlords Who Charge Ground Rent

High Court: Right to Rent does breach human rights

Landlords beware - Don't believe everything you read!

RECENT POSTS

Private Landlord Exodus Accelerates as Reforms and Rising Costs Pressure Rental Market

Freeholders claim Human Rights infringed in Legal Battle Over Leasehold Reforms

Freeholders Win Early Round in Legal Battle Over Leasehold Reforms

New Standards for Smart Appliances Aim to Reduce Household Energy Bills

HMO Investment and Mortgage Trends in the UK: Q1 2025 Overview



Blogs related:

ASSET MANAGEMENT
Fire Safety Law - whats next for leaseholders?
As the Grenfell Tower Inquiry continues into its second phase, examining the causes of the tragic fire, many leaseholders in unsafe homes find little reassurance in the Fire Safety Act 2021, which was made law last month. While the Act was intended to address building safety failures, many affected homeowners remain trapped in unsafe properties with no clear financial support to help cover the cost of essential remedial work.

Read


ASSET MANAGEMENT
Is it time to look north for your next home?
The pandemic has turned the housing market on its head. The stamp duty holiday has significantly increased house prices across the country, making buying a first home even more difficult than it was a couple of years ago. Meanwhile, the staycation boom has driven landlords toward short-term lets, removing large numbers of properties from the rental market. With demand up and supply down, the cost and desirability of many locations around the U...

Read


ASSET MANAGEMENT
Environmental Social Governance (ESG): Retrofitting To Achieve Energy Efficiency
Owners of old commercial and residential buildings must explore the retrofitting option to meet energy efficiency guidelines, as the UK government resolves to achieve net zero by 2050. The UK is battling with the cost-of-living crisis and a gloomy economic outlook and on top of these homeowners face the challenge of needing to retrofit houses and buildings to meet new EPC and MEES standards. Despite the significance and urgency of meeting ener...

Read


Meet our Expert Property Commentators

Mary-Anne Bowring FTPI FRICS FARLA FCABE Founder/Head of Asset Management

Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership

Ian Barber MD BTR Mobilisation & Leasing

Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!

Jon Curtis MRICS Head of Building Engineering

Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.

Kate Robinson MTPI MD Blocks/FM Management (London Region)

Master plan setup, ops and staffing and resident engagement. ISO45001 champion.

Lee Harle Partner Ringley Law

Plot conveyancing. Debt litigation. Group Company Secretary.

Natalie Birmingham Helpdesk Support Manager

Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.

Chris Georgalis MRICS Head of Commercial Valuation

Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews

Nichola Pughe MRICS Head of Residential Valuation

Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist


Insights, articles & blogs
INDEX

PROPERTY
BLOGS

LANDLORD
BLOGS

PROPERTY
ARTICLES

E-BOOKS

inshights shared - link to planetrent blogs

Landlord blog
Read landlord blog
inshights shared - link to ringley blogs

Property blogs
Read property blogs
inshights shared - link to ringley articles

Property articles
Read property articles
inshights shared - link to ringley ebooks

E-books
Read E-books

link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
link to ringley social media x-twitter for small device
link to ringley social media linkedin for small device
link to ringley social media instagram for small device
link to ringley social media facebook for small device
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Email: solutions@ringley.co.uk

  • Emergency line 1: 0207 428 2056

  • Emergency line 2: 0207 267 2900

  • Report an incident
  • Our Offices
  • London
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • London
  • Ringley House
  • 47 Rochester Place
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
Privacy Policy
Ringley Staff Dashboard
link to ifsm website link to tpos website link to rics website link to ukgbc website link to government security industry authority website link to alep website

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment