Private Rented Housing: Standards
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the adequacy of existing regulations on the charging and transparency of utility costs for people in accommodation occupied under licence agreements.
Answered by Matthew Pennycook
All renters, regardless of tenure or agreement type, deserve to live in safe and secure homes.
Those with a licence to occupy accommodation are protected from eviction and harassment and have a right to report health and safety concerns about their property to the local authority.
A landlord may include an amount in the rent to cover the cost of utilities that a licensee uses. A landlord may also record the occupier’s consumption and recharge them for it. Where utilities are resold, maximum resale price rules apply (Ofwat’s for water and Ofgem’s for gas and electricity), unless the charge is included in the rent for the accommodation.
In October 2025, Ofgem issued a call for input on Reselling Gas and Electricity to assess whether current arrangements under the Maximum Resale Price provisions remain fit for purpose. It can be found here. Ofgem is considering the responses received and aims to publish a policy consultation on proposed changes in the summer.
Local authorities already have robust powers to protect people living in accommodation subject to selective or HMO licensing. This includes using licence conditions to help ensure landlords provide safe and well-maintained properties and have suitable management arrangements in place. We keep licensing regulations under review.
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