Landlords wary of changes in water bill liability

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by Gill Montia

The Residential Landlords’ Association (RLA) is warning that proposed changes to regulations governing the payment of water bills are causing concern among buy-to-let investors.

New measures could mean that residential landlords are liable for unpaid bills run up by tenants who have quitted a property.

The Association suggests that water companies across the UK are struggling with high levels of debt and declining profits and are therefore looking for ways to gain income.

According to the RLA, Northumbrian Water is proposing that residential landlords should be made responsible for the debts of their tenants.

Such a move could require landlords or letting agents to declare whether the property owner or tenant is responsible for paying water bills, according to the terms of the tenancy agreement.

As a result, landlords could be required to provide water companies with details of tenants, so as to limit their liability.

It is understood that the Government is in favour of the changes but landlords are arguing that exposure to the extra cost of unpaid water bills could increase rents.