Households attempting to cut energy costs amid renewed price pressure are being warned that some popular “hacks” could breach tenancy agreements, invalidate insurance or even break the law.
Rising wholesale gas prices linked to geopolitical tensions in the Middle East have reignited concerns over the trajectory of the UK energy price cap, with forecasts suggesting annual bills could climb back towards £2,500.
In response, more households are exploring unconventional ways to reduce costs – but legal experts say some approaches carry significant risks.
One emerging trend is the sharing of energy between neighbouring properties, particularly in flats and terraced homes. This can involve running extension leads between homes or informally splitting utility usage.
BIG CONSEQUENCES
However, such arrangements can conflict with tenancy agreements, leasehold conditions or building regulations, particularly where safety or liability issues arise.
DIY modifications are also under scrutiny. While minor efficiency improvements are generally acceptable, more extensive or unregulated work – particularly involving gas, electrics or structural changes – can create serious consequences.
Unauthorised alterations may invalidate buildings or contents insurance, leaving homeowners exposed if damage or accidents occur.
At the same time, some households are seeking to offset rising costs by taking in lodgers or subletting rooms. While this can provide additional income, it is not always permitted under mortgage terms or tenancy agreements.
Failure to check the rules can lead to disputes with landlords or lenders, and in some cases may amount to a breach of contract.
LIABILITY ISSUES
Simarjot Singh Judge, Managing Partner at Judge Law, says: “Whenever there is a spike in household bills, we tend to see people getting creative with ways to reduce costs, but not all of these are risk-free from a legal perspective. What might seem like a harmless shortcut can, in some cases, create liability or even break the law.
“People may think they are simply helping a neighbour or splitting costs, but depending on the setup, this can breach tenancy terms, building regulations or even create safety liabilities if something goes wrong. If there is damage or injury, responsibility can quickly become a legal issue.”
BREACH OF CONTRACT
And he adds: “If you carry out unauthorised work, particularly involving gas, electrics or structural elements, you could find that your home insurance is no longer valid. That becomes a serious issue if something goes wrong, because you may not be covered for damage.
“In many cases, tenancy agreements or mortgage terms restrict subletting, and failing to check this can lead to serious consequences. At best, you could face disputes with landlords or lenders – at worst, you could be in breach of contract.
“Energy bills are rising and people are under pressure, but it’s important to understand the legal implications before taking action. A short-term saving is not worth the long-term risk if it creates bigger problems down the line.”
