High energy bills now add ‘extra month’s rent’ to annual costs for tenants
Hamptons says its research reveals just how much pressure some tenants are under financially as they are squeezed from all sides.
Average annual energy bills paid by tenants have reached the same cost as an extra month’s rent each year, research by Hamptons reveals.
The estate agency says tenants’ gas and electricity bills peaked at the highest level for seven years to reach their highest since 2017, although Hamptons says this will mark a high water mark following the recent decision to drop the energy price cap, which will see average bills dropping by 12%, with another reduction due in June.
During the 12 months to Q1 2024, average annual gas and electricity bills amounted to £1,331 for the typical rental home, a figure that stands £1 higher than the average monthly rent in Great Britain of £1,330.
The last time this happened was seven years ago when the average rent stood at £953 pcm and annual gas and electricity bills at £998.
Rents
Between then and the beginning of 2022, while rents continued to rise, energy bills fell in cash terms until wholesale prices spiked in early 2022.
Until then, energy bills had mostly been falling in both cash and real terms. This means that in total, tenants are paying an extra £5,993 each year in rent and energy bills than they were 10 years ago.
Over the past decade rents have risen by a total of 54% and energy bills by 46%. Almost all this rise in gas and electricity bills has come during the past two years, says Hamptons.
Energy prices
“In the short term at least, falling energy prices are likely to see the issue drop down the political agenda,” says Aneisha Beveridge, Head of Research at Hamptons.
“Therefore, minimum EPC standards for rented homes look unlikely to be introduced by the current government.
“But with a potential change of government, in the medium-term, landlords might see renewed pressure to make the homes they’re renting out more energy efficient.”
