London rental costs in 2026: what’s not included in your rent

If you’re relocating to London this year, one of the biggest unknowns, after choosing the right neighbourhood and navigating the rental market, is the true monthly cost of living. Rent won’t be your only major outlay.

London Rental Costs in 2026: what’s not included in your rent

Renter’s bills are increasingly becoming the factor that turns budgets from ‘manageable’ to ‘stressful’.

Where are we currently with paying bills, and what could 2026 hold for new tenants?

What you’ll learn in this quick guide

• What bills you will have to pay
• How those bills could be impacted in 2026
• How to plan for your bills

Where renters’ cost stand today

Most people renting a home in London currently pay some combination of:

• Energy (gas/electricity) – usually not included in rent, except in some serviced flats
• Council tax – typically the tenant’s responsibility (students are the main exception)
• Water – depends on the property and tenancy agreement
• Broadband – almost always separate
• TV licence – legally required if you watch live TV or BBC iPlayer

For new renters from overseas, the surprise tends to be that rents in London rarely include bills unless you’re renting a short-let or high-end serviced apartment.

What could affect renters’ expenses in 2026?

Tenants should prepare for continued pressure on their bills in 2026 across two high-profile areas.

Energy bills

Energy prices have settled compared to the peak crisis period, but they remain higher than many renters expect – particularly those coming from North America or parts of Asia. London’s large period housing stock doesn’t help – many residential properties still have poor insulation, inefficient boilers, or electric heating systems that are costly to run.

Forecasted impact for 2026: continued fluctuation rather than stability. Tenants may not see energy prices fall from recent inflated levels, particularly if global wholesale prices rise again.

Council tax

Council tax typically rises each year, and London boroughs often adjust rates annually. Even if rent stays fixed for 12 months, council tax may increase mid-tenancy depending on the billing cycle.

Forecasted impact for 2026: gradual increases, especially in boroughs under budget strain.

Planning your move

Don’t wait for your bills to start arriving in the post before planning your cost-of-living budget – start now:

• Ask upfront what bills are included – and get it in writing
• Request a property’s EPC rating – this is a strong indicator of likely heating costs
• Budget for the winter months when you will use more energy, causing bills to spike
• Check the property’s council tax band before committing – it can vary massively

Go into your London move with eyes wide open: assume variability, plan conservatively, budget with flexibility, and treat ‘rent + bills’ as the only number that matters.

FAQs

> Are bills typically included in rental prices?

No, in most London rentals, bills are not included in the rent price. Tenants are usually responsible for paying energy, council tax, water, broadband, and TV licence separately. Bills are typically included in short-lets or high-end serviced apartments only.

> What’s an EPC rating, and how do I interpret it to estimate my heating costs?

An EPC (Energy Performance Certificate) rates a property’s energy efficiency on a scale from A (most efficient) to G (least efficient) – every rental property must have one. Landlords are legally required to share it with prospective tenants. Properties rated A-C will have lower heating costs, D-E are average to below average (common in London), and F-G ratings indicate poor efficiency with very high heating bills. Since 2020, landlords generally cannot legally rent out F or G-rated properties without exemptions.

> Can I switch energy suppliers as a tenant, or does my landlord control which company provides my gas and electricity?

As a tenant, you have the right to switch energy suppliers if you pay the energy bills directly and have your name on the account. Therefore, your landlord cannot prevent you from shopping around for a better deal. However, there are some exceptions: if your energy bills are included in your rent, if you’re in a house of multiple occupation (HMO) with a shared meter, or if the property has a commercial energy contract rather than a domestic one.

> How much does council tax typically cost in London, and does it vary significantly between boroughs?

Council tax in London typically ranges from around £1,000 to over £3,000 annually, depending on your property’s council tax band (A-H, based on property value) and which borough you’re in. It varies significantly – both between boroughs (as each sets its own rates) and between bands within the same borough. Always check the specific band for your property and the rates charged by that London borough before committing to a tenancy.

Sources

• UK – Guide to the Renters’ Rights Act
• UK – How Council Tax works
• Simply London – Renting in London with bills included
• Simply London – Calculate your rental budget in London

Consult with Simply London

You’ve navigated London’s rental market, found the right property, and secured a good monthly rate – but don’t pat yourself on the back just yet. You must plan for your monthly bills and the potential for them to increase over time.

Our relocation experts won’t just help you find accommodation that fits your lifestyle needs and rental budget; they understand that the ongoing costs must align with your financial circumstances. We’re here to help you find and secure properties that work for your budget, answer questions about bills and tenant rights, and ensure you move to London with confidence and clarity about your monthly costs.

Contact us today, or schedule a free call with us here to discuss how we can help you secure a rental place in London and manage these bills in the easiest possible way!

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