London rental platform, Rentd, has revealed that opting for a rental property that includes the time saving benefit of including bills within the topline cost of renting will cost the average tenant over £700 more per year.
Rentd analysed current market stock available for rent across the capital which shows the cost of renting a property without bills included sits at an average of £1,724 per month.
In contrast, rental properties that do provide the additional draw of including bills within the overall cost of renting averaged £2,023 per month – 17% more.
Not only do these properties present a much higher initial cost, Rentd’s research shows opting for a rental home with bills included will also cost you more in the long run.
In fact, the estimated monthly cost of council tax, gas, electricity, broadband and a TV licence, will set you back an average of £2,880 per year in London – that’s £240 per month.
That’s a combined cost of £1,964 per month when coupled with the average cost of renting a property with no bills included (£1,724). Therefore, those renting a property with bills included will pay £59 per month more on average per month, a cost that amounts to over £700 more a year (£708).
Surprising then, that despite this higher cost, 26% of London rental properties listed on the market with bills included have already been snapped up. This tenant demand climbs as high as 38% or more across Brent, Harrow, Tower Hamlets and Greenwich.
However, Rentd’s research also shows that this demand coupled with a lack of stock could be contributing to this higher cost. Just 8% of all London rental homes currently listed on the market provide the draw of bills included within the top-line cost of renting.
Sutton has one of the lowest levels of available rental stock that includes the cost of bills at just 3%, along with Kingston and Wandsworth.
Founder and CEO of Rentd, Ahmed Gamal, commented: “A rental property that offers the convenience of covering your household bills within one monthly rental payment has long been a draw for many tenants. It can remove the considerable headache of handling your own bills, removing the need to organise and manage multiple direct debits, split costs between housemates and adjust for any changes on an ongoing basis.
However, with the capital already home to the highest cost of renting in the UK, the increasing cost of living will no doubt be on the mind of many London tenants. Those who are already particularly hard pressed may find that they can cut their household outgoings by quite a substantial sum, simply by spending a little time and effort taking care of their household bills themselves.”