This article explores who is responsible for council tax and utility bills during void periods, and how landlords can manage these costs effectively.
07/08/2026By Sunil Chander · Co-Founder
This article explores who is responsible for council tax and utility bills during void periods, and how landlords can manage these costs effectively.
A void period is an unavoidable feature of property letting. Whether a property sits empty between tenancies for a matter of days or several weeks, the financial obligations attached to it do not pause simply because no tenant is in residence. Council tax, utility standing charges and other recurring costs continue to accrue, and it falls to the landlord to manage them. Understanding exactly who is liable for what, and when, is essential for any landlord to avoid being caught off guard by unexpected bills.
Council tax during a void period
In many standard tenancies, the tenant is responsible for council tax while the tenancy is running. When the property becomes empty, liability will often fall back on the landlord, although the exact position can depend on the local authority’s rules.
The level of liability during a void period depends on local authority policy. Landlords cannot assume any relief will apply and checking with the local authority at the outset of a void period is always the prudent step. The specifics vary considerably from council to council, which makes it all the more important for landlords to understand the rules in their particular area rather than relying on general assumptions.
Utilities and standing charges during a void period
Council tax is rarely the only cost a landlord faces during a void period. Utilities standing charges on an empty property continue to accrue regardless of consumption because energy suppliers charge a daily standing charge simply for maintaining the connection to the supply. Gas, electricity and water standing charges add up and do not stop because the property is unoccupied. During a void period, landlords will often need to take over responsibility for the accounts until a new tenant moves in.
To manage vacant property bills sensibly, landlords should notify all relevant utility providers as soon as a tenancy ends, submit a final meter reading and ensure that accounts are transferred into their own name for the duration of the void. This prevents erroneous estimated bills from accumulating and makes it straightforward to transfer accounts back to an incoming tenant promptly.
Notifying the council and utility providers
One of the most practical steps a landlord can take at the point of a tenancy change is to notify the council of the change of tenant promptly. Most local authorities require this notification and provide an online form or dedicated contact for doing so. Notifying the council without delay ensures that the outgoing tenant's liability is closed accurately and that the landlord's own liability for the void period is correctly recorded from the right date.
Delays in notification can create disputed liability periods that are time-consuming to resolve. The same principle applies to utility accounts. Contacting energy and water suppliers at the point a tenancy ends, rather than waiting until a new tenancy is agreed, avoids a situation where accounts remain in a departed tenant's name while standing charges continue to build up against them, which can itself become a source of dispute or complaint.
Bills-included tenancies and how to word them clearly
Where a landlord has chosen to offer a bills-included tenancy, the tenancy agreement must set out clearly which bills are covered, any cap on consumption that applies, and what happens if usage exceeds that cap. Vague wording along the lines of "all bills included" creates ambiguity that can lead to disputes if, for example, a tenant's energy consumption is unusually high or a standing charge increases mid-tenancy. A well-drafted clause will list each included service by name, specify whether the landlord or tenant is responsible for setting up and managing the accounts, and address what the arrangement looks like during any gap between tenancies.
Conclusion
Void periods are a cost of doing business in property letting, but they need not be a source of financial surprise. Understanding council tax liability during empty periods, accounting for utility standing charges, and notifying the council and providers promptly when tenancies change are all practical measures that landlords can implement to stay in control.
FAQs
Q. Who pays council tax when a property has no tenants?
A. Generally, when a rental property is unoccupied between tenancies, the landlord becomes liable for council tax for the duration of the void period. The liability usually transfers back to the property owner on the day the tenancy ends, and remains with the landlord until a new tenancy begins.
Q. Do you pay council tax on an empty house?
A. Yes, council tax is generally payable on empty residential properties, though the exact rate and potential relief period depends on the local authority in question. You must check the guidance for your local council.
Q. Do landlords pay water bills?
A. Generally, during an active tenancy, the water bill in a rental property is ordinarily the tenant's responsibility unless the tenancy agreement specifies otherwise. During a void period, responsibility for the water account and any associated standing charges reverts to the landlord.
Q. What bills do tenants pay when renting?
A. In a standard tenancy, where bills are not included, tenants are typically responsible for council tax, gas, electricity and water, as well as broadband and any television licence. The precise split of responsibilities should always be set out clearly in the tenancy agreement.
Q. What costs do landlords pay?
A. In most cases, landlords are usually responsible for buildings insurance, mortgage payments, where applicable, maintenance and repair costs, gas safety certificates, electrical installation condition reports, any licensing fees required by the local authority, and service charges, where applicable. During void periods, they also bear responsibility for council tax and utility charges.
Q. How do I notify the council of a change of tenant?
A. Most local authorities provide an online form specifically for notifying them of a change of occupant in a rental property. Landlords should do this promptly when a tenancy ends, providing the outgoing tenant's move-out date and the incoming tenant's details once known, to ensure that council tax liability is allocated correctly throughout.
Q. What wording should I use for a bills-included tenancy agreement?
A. Rather than relying on a general phrase such as "all bills included," a tenancy agreement should list each utility by name, specify any fair usage cap that applies, and clarify who holds the accounts. It is also advisable to state what happens if consumption significantly exceeds the cap, to avoid disputes arising from high usage during the tenancy.
Q. Can a landlord charge a tenant for council tax owed during an overlap period?
A. If a tenancy agreement clearly sets out the tenant's liability for council tax from the start date of their tenancy, and the tenant is in residence, then the council tax obligation sits with them for that period. If there is any ambiguity around dates or liability, the landlord should resolve this with the local authority directly rather than pursuing the tenant informally.
Q. Are utility charges recoverable from an outgoing tenant?
A. Standing charges that accrued while a tenant was in residence and the accounts remained in their name may form part of a deposit dispute if the tenant failed to settle those bills before leaving. Any such claim would need to be supported by documentation and processed through the relevant tenancy deposit scheme.
About the author
Sunil Chander
Co-Founder
Sunil oversees operations and compliance at Pauzible, drawing on his extensive experience as the founder and CEO of Dawnbud Limited, a financial services consulting firm. His prior career included senior roles in investment banking at Smith New Court and NatWest. He holds an MBA from LBS, M Litt from Oxford and a PhD from Cambridge.
council taxutility billsvoid periodslandlord responsibilitiesproperty management
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