Setting Up Bills
8 min read Guide Updated 2026-03-14
Setting Up Bills: How to Split Costs with Housemates
Moving into a private rental means taking responsibility for your own utilities. You must establish a reliable system for dividing costs before any bills arrive.
Decide How to Split the Costs
Discuss financial responsibilities with your housemates on day one. You have three main options for managing shared expenses. You can nominate one person as the lead tenant to manage all direct debits. You can use a dedicated bill-splitting service that charges each person individually. You can open a joint bank account specifically for household expenses.
Nominating a lead tenant requires complete trust. The person named on the utility account holds sole legal responsibility for the debt. If housemates pay late, the lead tenant must cover the shortfall or face late fees. Avoid this method if you have any doubts about your housemates’ financial reliability.
Bill-splitting companies remove the stress of chasing payments. These services bundle your energy, water, and broadband into one monthly payment per tenant. They charge a premium for this convenience. Expect to pay significantly more over a 12-month contract compared to setting up utilities directly.
Open a Joint Account or Use a Bill-Splitting App
A joint household account offers a transparent middle ground. Every tenant sets up a standing order to transfer their share of the monthly bills into the joint account three days before the direct debits clear. This ensures the money is always available.
Check out our bills splitter tool to calculate exact monthly contributions for each housemate based on your total estimated costs.
If you choose a joint account, ensure it requires multiple signatures to close or change the overdraft limit. Keep the account strictly for essential utilities. Never use it for groceries or personal expenses.
Setting Up Energy Bills for Your Student House
Energy will represent your largest utility expense. You must secure a supplier and register your details immediately upon moving in.
Find Your Current Energy Supplier
Properties already have an active energy supply when you move in. You must identify the current provider to set up your account. Ask the letting agent or landlord for this information during your property viewing or key collection.
If the landlord does not know the supplier, you can find out yourself. Use the Energy Networks Association online search tool to locate your electricity provider. Check the Find My Supplier database to identify your gas company.
Contact the current supplier by phone or through their website. Inform them you are the new tenants. Provide your move-in date and the names of all adults living in the property.
Take Meter Readings on Moving Day
Locate your gas and electricity meters as soon as you unlock the front door. Take clear photographs of both meter dials showing the numbers and the surrounding serial numbers. Submit these readings to your current supplier immediately.
Failing to submit move-in readings means the supplier will estimate your usage. You could end up paying for energy consumed by the previous tenants.
Keep these photographs backed up on your phone until you receive your final bill at the end of the tenancy. They serve as definitive proof of your starting usage if a dispute arises.
Choose the Right Energy Tariff
You do not have to stay with the property’s current energy supplier. Once you register your details, you can switch to a cheaper provider or a better tariff.
Compare fixed-rate and variable-rate tariffs. A fixed tariff locks in your unit price for 12 months, protecting you from future price hikes. A variable tariff fluctuates based on the Ofgem price cap. Review your options using a comparison site and switch if you find a better deal.
Arranging Broadband When Setting Up Utilities
Internet access is essential for university coursework and streaming. Student houses rarely include broadband in the rent.
| Broadband Type | Ideal For | Minimum Recommended Speed |
|---|---|---|
| Standard ADSL | 1-2 light users | 10-15 Mbps |
| Superfast Fibre | 3-4 students, streaming | 30-60 Mbps |
| Ultrafast FTTP | 5+ students, heavy gaming | 100+ Mbps |
Compare and Order Broadband Early
Broadband installation takes between two and four weeks. Order your package before you move in to avoid spending your first month relying on mobile data hotspots.
Check the maximum speeds available at your specific postcode. A house of four students streaming lectures and downloading large files requires a minimum speed of 60Mbps. Fibre-to-the-premises (FTTP) offers the most reliable connection for multiple heavy users.
Look for student-specific broadband deals. Many providers offer nine-month contracts tailored to the academic year. These prevent you from paying for internet over the summer months when the house sits empty. Compare the total cost of a nine-month contract against a standard 12-month deal to ensure you actually save money.
Registering for Water and Council Tax Exemption
Water and council tax are tied to your local region. You cannot switch providers for these services, but you must still register your details.
Contact Your Regional Water Supplier
Your property falls under the jurisdiction of a single regional water company. Find your provider using the Water UK website.
Contact the supplier to set up your account. Check if your property has a water meter or charges a standard rateable value. A meter charges you solely for the water you use. A rateable value charges a fixed annual fee regardless of consumption.
If you have a meter, take a reading on moving day and submit it to the supplier. Set up a monthly direct debit to spread the cost evenly across the year.
splitting bills on a laptop” loading=”lazy” decoding=”async”>Apply for Your Council Tax Exemption
Full-time students do not pay council tax. You must actively apply for this exemption; local authorities do not apply it automatically.
Request a student status certificate from your university registry or download it from your student portal. Visit your local council website and navigate to the council tax section. Complete the student exemption form and upload your certificate.
If you live with a non-student, the household loses the full exemption. The property will receive a 25% discount, and the non-student remains legally responsible for the remaining 75% of the bill.
Do this during your first week in the property. Councils act quickly to issue debt collection letters if they believe an occupied property owes tax.
Managing the TV Licence and Ongoing Bill Payments
The final steps involve legal requirements for broadcasting and establishing a routine for paying your providers.
Buy a TV Licence if You Need One
You need a TV licence if you watch or record live television on any channel. You also need one to use BBC iPlayer on any device, including laptops, tablets, and gaming consoles.
One licence covers the entire property if you have a joint tenancy agreement. If you have individual tenancy agreements for your specific rooms, you each need a separate licence for devices in your own rooms.
You do not need a licence to watch Netflix, Disney+, Amazon Prime, or catch-up services on platforms like ITVX or Channel 4, provided you are not watching live broadcasts. If your household strictly uses these services, declare that you do not need a licence on the TV Licensing website to stop the reminder letters.
Set Up Direct Debits and Track Payments
Direct debit is the cheapest and most reliable way to pay utility bills. Suppliers often provide discounts to customers who use this payment method.
Schedule all your direct debits to leave your account on the same day each month. Align this date with your student loan drops or monthly wage payments. This prevents accidental overdrafts and ensures you always have funds available.
Read our student money guide for detailed advice on budgeting your maintenance loan across the academic term.
Review your bills every quarter. Energy suppliers base direct debits on estimated usage. If you use less energy than predicted, your account will build up credit. You can request a refund for this credit at any time. If you use more, the supplier will increase your monthly payments to cover the deficit.
Head to the student housing section on unisorted.co.uk for more resources on managing your tenancy and thriving at university.
Frequently Asked Questions
Do students have to pay for water bills?
Yes, students must pay for water in private rented accommodation unless the tenancy agreement explicitly states the landlord covers it. You must register with your regional water supplier upon moving in. Set up a direct debit to spread the annual cost into manageable monthly payments.
How do I find out who supplies my gas and electricity?
Ask your landlord or letting agent for the current supplier details. If they cannot help, use the Energy Networks Association tool online to find your electricity provider. Use the Find My Supplier service to locate your gas company.
Can I change energy suppliers in a rented house?
You have the legal right to switch energy suppliers if you pay the bills directly. You do not need your landlord’s permission to switch providers or change tariffs. You only need permission if you want to install a physical prepayment meter or a smart meter.
What happens if one housemate refuses to pay bills?
If all names are on the utility account, you are jointly and severally liable for the debt. The supplier can pursue any named tenant for the full amount. If only one person is named on the account, that individual holds sole legal responsibility for paying the supplier.
