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The water bill for a holiday let is rarely the biggest line item, but it is one of the few that can be improved without operational change.
You can switch retailer. Holiday lets have had that right in England since 2017. Most never have.
This page covers where holiday let water costs come from, how to switch retailer, and where overpayment usually hides.
- England’s non-household water market opened to competition on 1 April 2017 under the Water Act 2014.
- Around 20 retailers are licensed by Ofwat to supply holiday lets across England and Scotland.
- Wholesale supply still comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others).
- Holiday lets can contract directly with retailers, and multi-site operators can contract centrally for portfolio pricing.
- Typical holiday let water spend varies widely by site type and size.
- The three biggest savings levers: surface water drainage rebates, meter validation, and tariff reviews.
Why holiday lets pay more for water than they should
A holiday cottage uses water in unusual patterns: a busy hot summer week with full occupancy can hit ten times the volume of a wet February week. That seasonality should drive a tariff with a sensible standing/usage split — but most holiday lets sit on a default commercial tariff designed for a steady-state office that never goes empty.
The other quiet drain on the bill is surface water drainage. A typical holiday let sits on a generously sized plot — gardens, parking, sometimes paddocks. None of that drains to the public sewer, but the retailer charges for surface drainage on the building footprint plus surrounding hardstanding by default. Documenting where rainwater actually goes recovers up to six years.
The five places holiday lets overpay
| Where holiday lets overpay | Why it matters |
|---|---|
| Standing charges through low season | Default tariffs charge full daily standing fees year-round, even when the property is empty for weeks. A seasonal-aware tariff brings this down materially. |
| Surface water drainage on garden/parking | Charged on the whole site footprint — including driveways, gardens and patios that drain to soakaways or grass. Rebate-able up to six years. |
| Hot tub or pool top-ups not metered separately | A regularly-refilled hot tub or small pool can add 15–25 m³ a year. Default tariffs charge full retail margin on every cubic metre — sub-metering can shift this onto a cheaper rate. |
| Linen-laundry water usage on commercial tariff | If you launder linens on-site you’re using volumes closer to a small B&B than a domestic rate. The contract often doesn’t reflect that and can be optimised. |
| Multi-property portfolio paying default tariff per unit | Owning three or more lets and not having a portfolio-rate contract leaves money on the table — retailers will discount on a single multi-site contract. |
Can holiday let owners and agents switch water supplier?
The 12 retailers below are all licensed by Ofwat to supply non-household water. Pricing, service and sector experience vary — most operators shortlist three and run a comparison.
Routes to procurement
Three ways operators in this sector typically bring a new water contract in. Each comes with its own trade-off between control, effort and how sharp the price lands.
Holiday let water FAQs
Do holiday lets pay business water rates or domestic?
Holiday lets that are commercial-rated for council tax / business rates pay non-household water rates, which is the open market we operate in. Holiday lets still on domestic council tax are on a residential water tariff and can’t switch retailer. Check with your council if you’re unsure.
How does seasonality affect the bill?
Standing charges run year-round even when occupancy is zero. A retailer with a seasonal tariff option will lower the daily standing fee in exchange for a slightly higher unit rate — a net win for any property with more than 8 weeks of low occupancy.
I have a hot tub. Does that change anything?
A weekly-refilled hot tub adds materially to volume. Worth sub-metering it so the wholesale rate (rather than retailer-margin rate) applies to that volume specifically. Retrofit sub-meters cost £150–£300.
My property is in a remote village. Are all 12 retailers actually available to me?
Yes. The retailer relationship is contractual — they bill you and read your meter. The wholesaler (the regional water company) supplies the water. Geography only affects who the wholesaler is, never which retailer you can choose.
I rent out via a managing agent. Can the agent switch on my behalf?
Only with written authority. The contract sits in the legal owner’s name unless explicitly assigned. Most owners switch themselves once the agent flags it’s worth doing.
How much does a typical holiday let save by switching?
A single cottage typically saves £400-£900 a year. A larger or coastal property saves £900-£1,500. A multi-property portfolio saves £2,000-£5,000 a year.
How do I get a quote?
Send a recent water bill from one of your properties. The SPID, annual cubic-metre volume and current retailer are all on it. We come back within two working days with an alternative quote and a flag if anything looks worth auditing for historic refunds.
