The British Property Federation has welcomed a government review which could see it pull back from powers that would force landlords to share information on changes of tenancy with water companies, and even make them liable for their tenants’ debts.

The failure of some customers to pay water bills adds approximately £15 per year to the bills of paying customers. Under The Flood and Water Management Act the government can make owners liable for payment of water and sewerage bills if they fail to provide specified details of occupiers.

However, the government is considering whether ‘bad debt’ can be tackled through a voluntary and non-regulatory approach, a move landlords would support if the correct system is put in place beforehand.

The government believes that the lack of consequences of non-payment has contributed to unpaid bills from domestic water customers spiralling from £705 million in 1998-99 to £1.635 billion in 20010-11. The industry wrote off approximately £328 million of household debt in 2010-11 an increase of £168 million from the previous year.

Ian Fletcher, director of policy at the British Property Federation, said: “Government policy in other areas is pushing for personal responsibility and the same should apply here that landlords should not be held liable for their tenants’ debts