Tenants pay dearly for gas and electricity

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by Gill Montia

Tenants are likely to be paying more for electricity and gas than homeowners because landlords show little interest in switching to the most competitive supplier.

According to financial website, MoneyExpert.com, people in rented accommodation spend up to 13% of their weekly disposable income on gas and electricity, while homeowners are paying an average of 5% on energy bills.

For tenants, the choice of supplier rests with the landlords but MoneyExpert.com director, Sean Gardner, believes that people who are renting have every right to ask landlords to consider switching if it will reduce their outgoings.

According to MoneyExpert, over three million households switch energy supplier every six months and save as much as £365 a year as a result.

Gas and electricity prices are expected to rise by up to 40% this winter, adding £400 a year to the average cost of £924 per household for both utilities.

While insulation in rental property should improve with the introduction this October of Energy Performance Certificates, the majority of tenants are in old housing stock and therefore likely to pay dearly to heat their homes.

According to a recent report by the Association of Residential Letting Agents, the typical UK rental property is a terraced house in an outer or inner town or city suburb.

Only around 13% of such properties were built after 1985, with approximately two-thirds dating from before 1945.