Renters’ rights: broadband exit fees cost renters £290m
Nearly half of UK renters (47%) wish broadband contracts were more suited to their needs[1]
Despite renters moving home more frequently than any other group, over four in ten (44%) are currently locked into 18-24 month contracts[2]
Nearly a quarter (23%) of renters have had to pay exit fees to leave their broadband provider because their tenancy agreement came to an end[3], costing an average of £77.90 per person, or a total of £290M for the UK[4]
A third (33%) of respondents indicated they would be willing to pay extra for a shorter contract option, and would consider paying £2.20 per month extra per month for this service[5]
Uswitch.com calls on providers to offer more choice in short term deals - and offers tips for renters on how to manage and negotiate their broadband contracts
Nearly half of UK renters (47%) wish broadband contracts were better suited to their needs[1], according to a new study by Uswitch.com.
Just over 4.6 million households live in the private rented sector in England, representing 19% of all households[6]. Government research shows that people living in this type of accommodation tend to move around more frequently, with one in five (21%) private renters having lived in their current home for less than a year[7]. However, over four in ten (44%) currently find themselves locked into 18-24 month broadband contracts[2].
This is proving costly to renters, and over a quarter (23%) have had to pay exit fees to leave their broadband provider because their contract came to an end[3]. On average, they paid £77.90 on broadband exit fees, meaning the total spent by renters over the past five years is at least £290M[4].
A third (33%) of respondents indicated they would be willing to pay extra for a shorter contract option, at an average of £2.20 per month. While younger people (aged 18-34) would be even more likely to pay a premium for this level of flexibility, at an average of £3.90 per month[5].
In line with their more flexible living situations, renters are calling for more choice from broadband providers. One in five (22%) said there aren’t enough short-term contracts out there, and one in ten (11%) agreed they feel penalised by a lack of short-term options[8].
With so many customers locked into contracts they may not need, it is no surprise that broadband (18%) is the third biggest concern for renters when it comes to household bills, behind energy (67%) and water (25%)[9].
Sabrina Hoque, broadband expert at Uswitch.com said: “Renters are disproportionately impacted by being locked into a long-term contract, and they are naturally feeling let down by providers.
“It’s widely known that there is a shortage of rental property supply due to high demand at the moment, so providers should really be taking this group seriously and consider offering more choice in affordable, shorter term contracts.
“All providers have to offer a 12 month broadband option, but don't necessarily have to advertise them - so, consumers should call up and negotiate if they can't see one with their current provider, or consider switching.
“In many cases, renters may also be able to take their broadband contracts with them if they have to move. If the provider isn’t available in the new area, phoning-up and explaining the situation can help avoid the possibility of an exit fee.
“While no-contract options exist they are not common and usually are accompanied by a big catch: the monthly price. So they’re normally best suited to people who only need a connection for a short period of time - or those who are happy to pay a premium price for the short-term flexibility. Renters should weigh up higher monthly costs versus potential exit fees to make the best decision for their situation.”
Daniel Copley, Consumer Expert at Zoopla said “The average UK rent increased by 9% in the last year, which has only added weight to the bills faced by tenants. It is not a legal requirement for landlords to offer tenants broadband access, so negotiating how bills will be managed, and whether broadband is available at the property upfront can make a big difference”.
Visit Uswitch.com to view our guide on moving home.
Notes to Editor
Opinium surveyed a sample of 4,000 UK adults from the 12th to 16th January to identify any correlations between living situations and broadband experiences. Results have been weighted to be nationally representative.
Respondents were asked: ‘How far do you agree or disagree with the following statement: “I wish there were more broadband contracts suited to the needs of renters available on the market. For instance, more choice in shorter term contracts to align with shorter tenancy agreements or equivalent”. 47% of respondents agreed, compared to 11% who disagreed.
Respondents were asked: ‘What is the length of your current broadband contract?. 44% selected 18 months or 24 months.
Respondents were asked: ‘Have you had to pay broadband exit fees to leave your internet provider early because your rental contract came to an end in the last 5 years (since January 2019)? If this has happened more than once please think of the most recent time. 23% selected yes.
Respondents were asked: ‘Have you had to pay broadband exit fees to leave your internet provider early because your rental contract came to an end in the last 5 years (since January 2019)? If this has happened more than once please think of the most recent time.’ Respondents cited the cost of exit fees with the mean average amount being £77.90.
Respondents were asked: ‘If a shorter broadband contract option were to be available, how much more would you be willing to pay per month for this?’ The average amount cited was £2.20 per month. The averaged amount cited by 18-34 year olds was £3.90 per month.
Data sourced from the English Housing Survey 2021 to 2022: private rented sector
Data sourced from the English Housing Survey 2021 to 2022: private rented sector
Respondents were asked: ‘Which of the below household bills, if any, are you most concerned about? Please choose up to three’. The top responses were energy (65%), water (19%) and broadband (15%)
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.