Landlords could face unpaid water bills

Landlords could be forced to pay tenants' unpaid water bills to the tune of £500 million per year under plans outlined in a new government review.

The Walker Review on Water Charging includes a proposal from water companies asking the government to consider legislation allowing them to pass unpaid bills to landlords.

Water companies, unlike other utilities, are not permitted to cut off or limit supply upon payment failure and it is estimated that unpaid water bills in privately rented accommodation total around £500 million a year.

The proposal has been met with strong opposition from property trade bodies, the British Property Federation (BPF) and the Residential Landlords Association (RLA), who say they will fight it "tooth and nail".

Both the BPF and RLA claim debts could be significantly reduced if water companies worked more closely with landlords to identify tenants rather than issuing bills to 'the present occupier'.

Richard Jones, legal counsel for the RLA, said: "A serious principle is at stake here. Nowhere else in this country is someone compulsorily made responsible for paying for goods or services supplied to another.

"Small landlords already have enough problems in collecting money which is due to them. If it is not paid they have to pass it on to the other tenants through higher rents. Landlords should not be expected to underwrite monopolistic water companies in the way which is proposed.

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