Properties with bills included appear to be falling out of favour as cost-of-living rises mean landlords can lose money on them despite the 20% rent premium.

Research by London lettings and estate agent Benham and Reeves reveals that only 16% of all rental properties currently listed on the market in England are advertised as having bills included.

Tenant appetite for bills-included properties is low with just 13% of these current listings having already found a tenant.

Average asking rents for bills-included

It analysed Zoopla’s live rental stock data and found that the average asking rent for a bills-included property in England - typically student lets, HMOs and build-to-rent developments - is £2,028 per month.

the average for a property without bills included is £1,682. This means landlords who offer bills-included rentals benefit from a rental premium of £346 per month, or 20%.

An analysis of household bills finds that the average monthly cost for energy, broadband, council tax, and TV licence comes to £384, raising questions about whether offering bills included rentals makes financial sense for landlords.

Marc von Grundherr, of Benham and Reeves, tells LandlordZONE: “The rental market remains a lucrative and worthwhile investment and so whilst including bills may reduce profit margins slightly, it’s unlikely that landlords offering this addition will be making a loss. For some tenants, the ability to make one payment instead of multiple will still act as a considerable draw, helping landlords to stand out from the rest of the competition.”

The West Midlands has the strongest stock level of bills included properties, accounting for 34% of all current listings, while tenants in the South East are most likely to go for a bills-included rental, with regional demand sitting at 21%.

He believes that many areas of the rental market in the South are more transient. “Tenants renting with a more short-term plan in mind often prefer the convenience of a bill-included rental as it prevents them from having to start and end multiple contracts within a shorter period of time.”

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