Renting in London: the true cost before you move in

In London the rent in the ad is a monthly figure, but it is not your monthly cost. Council tax, energy, water and broadband come on top unless the listing says they are included, and before you move in you pay a holding deposit, a tenancy deposit and your first rent. The good news is that in England the law limits what a tenant can be asked to pay. This guide covers England's rules; Scotland and Wales have their own, so check those separately.

Rent per calendar month

Rents are advertised per calendar month (pcm). Some, especially rooms, are quoted per week: multiply the weekly rent by 52 and divide by 12 to get the pcm figure; multiplying it by 4 makes the home look cheaper than it is. Rent is the biggest line, but compare homes on the full monthly cost.

The cost lines to start a tenancy

Holding deposit. Paid to reserve the home while checks are done. It is capped at one week's rent. If the tenancy goes ahead it must be returned or, with your agreement, put towards your first rent or deposit. If the landlord pulls out, you get it back. It can be kept only in limited cases, for example if you give false information, fail the Right to Rent check or change your mind.
First rent. Paid at the start of the tenancy, as the agreement says.
Tenancy deposit. Refundable, and capped at 5 weeks' rent where the annual rent is below £50,000, or 6 weeks' rent where it is at or above that.
Nothing else as a fee. Viewing fees, admin fees, referencing fees, check-in or check-out fees and charges for a professional clean are not permitted (more below).

The cash before move-in is the first rent plus the deposit; the holding deposit usually becomes part of one of them. For a worked example with real numbers, see the worked example on our UK page.

Only permitted payments: the Tenant Fees Act 2019

In England, the Tenant Fees Act 2019 lists the only payments a landlord or letting agent can ask a tenant for in most private lets:

rent;
a refundable tenancy deposit, within the cap above;
a refundable holding deposit of no more than one week's rent;
a capped fee if you ask to change, assign or end the tenancy early (or reasonable costs where higher);
default fees for rent paid more than 14 days late (interest at a capped rate) and for lost keys or security devices (reasonable costs, with evidence);
utilities, communication services, the TV licence and council tax, where the agreement makes you responsible for them.

Anything else is not allowed. If you were charged a banned fee, you can ask for it back, and local councils (Trading Standards) enforce the Act.

Council tax is part of the monthly cost

Every home in England is in a council tax band, from A to H. The tenant usually pays council tax directly to the local council, monthly over most of the year. The same band costs a different amount in each London borough, so a flat in Canary Wharf, Stratford or Croydon with the same band can carry different bills. You can check a home's band before you apply. A single adult usually gets a 25 % discount, and full-time students are usually exempt. In a shared house let room by room, the landlord may pay it instead; ask.

Bills included, or not

"Bills included" can mean anything from everything to just water. Ask which bills are included, whether there is a usage cap, and whether council tax is part of it. If bills are not included, you will usually pay:

gas and electricity, to the current supplier (you can switch later);
water, to the water company for the area;
broadband, which you arrange yourself and which can take time to install;
a TV licence, if you watch or record programmes as they are broadcast or use BBC iPlayer.

Energy and water normally stay connected. On move-in day, photograph the meter readings and register as the new customer.

Deposit protection

Within 30 days of receiving your tenancy deposit, the landlord or agent must protect it in a government-backed deposit protection scheme and give you the scheme's details. At the end, you agree deductions with the landlord, and if you disagree, the scheme's free dispute service decides. An inventory and check-in photos are your best evidence.

Checks before you sign

EPC rating. Every rented home needs an Energy Performance Certificate, and most must be rated at least E. You can look up the certificate; a low rating usually means higher energy bills.
Safety papers. Ask for the gas safety record, the electrical safety report and confirmation of smoke and carbon monoxide alarms.
Right to Rent. In England the landlord or agent must check that you can legally rent before the tenancy starts. The check is free; see how to prove your right to rent.
The agent's memberships. Letting agents must belong to a government-approved redress scheme, and agents who hold client money must have client money protection. Ask for both certificates.

Changes being brought in

The Renters' Rights Act 2025 brings changes for private renting in England, including how tenancies run, how much rent can be asked in advance and an end to rental bidding. Check what applies on your start date in the government's overview for tenants.

Questions to ask before paying anything

What is the rent pcm, and which bills are included?
What is the council tax band?
How much is the holding deposit, and what is the deadline to agree the tenancy?
How much is the tenancy deposit, and which protection scheme will hold it?
Is any other fee being asked for? If so, which permitted payment is it?
What is the EPC rating?
Can I see the gas safety record and the electrical safety report?
Which redress scheme does the agent belong to, and do they have client money protection?

If someone asks for money before you have viewed the home or seen who the landlord is, stop and read our guide to avoiding rental scams.

How LeaseExact shows this

On LeaseExact, the exact-cost card lists every cost line: rent pcm, council tax for the band, bills, the refundable deposit within its legal cap, the holding deposit and the cash needed before move-in. A line the advertiser has not confirmed yet, such as an energy estimate, shows as "Not confirmed yet" with a range. We never divide a yearly rent by twelve and call it monthly. A fee that is not a permitted payment cannot be added to an England listing, and verified listings show the EPC rating and the agent's redress scheme and client money protection as stated. Scotland and Wales listings say that rules differ. LeaseExact is not a broker or letting agent, takes no commission and never holds deposits. It is free for renters, always: create a free account to save homes and compare them.

Sources

Tenant Fees Act 2019, legislation.gov.uk
Tenancy deposit protection, GOV.UK
Council tax bands, GOV.UK
Find an energy certificate, GOV.UK
Prove your right to rent in England, GOV.UK
Renters' Rights Act overview for tenants, GOV.UK

Last checked: 21 October 2026.