Renting in London: What to Know Before You Sign a Contract

Before agreeing to rent a home in London, it helps to treat the process like a short due-diligence exercise: confirm what is included in the rent, understand the contract you are being asked to sign, and budget for the up-front cash you may need. A few careful checks can also reduce the risk of disputes over repairs, move-out deductions, or unexpected “extras”.

Navigating London’s rental prices in 2026

London rents are shaped by location, transport links, property size, building condition, and whether bills are included. In 2026, the most practical way to interpret asking rents is to compare like-for-like homes within the same micro-area (often just a few nearby streets), rather than relying on a single citywide average. Look at recent listings for similar floor space, furnishings, and tenure length, and pay attention to how long a property stays advertised.

It also helps to separate “headline rent” from the total monthly cost of living. If heating, hot water, internet, and council tax are not included, two properties with the same rent can feel very different in affordability. When you view a place, ask for a clear list of inclusions (for example, whether service charges, concierge costs, or gardening are covered) and clarify whether the rent is expected to rise during the fixed term or only at renewal.

Understanding your tenancy agreement

Most renters in London will sign an Assured Shorthold Tenancy (AST) in England, typically with a fixed term (often 6–12 months) followed by a periodic arrangement if you stay. Read the clauses on rent payment dates, notice periods, break clauses, and what happens if you need to leave early. A break clause can be valuable, but only if you understand when it can be used, what notice is required, and whether it must be exercised on a specific date.

Check responsibilities for repairs and maintenance. Landlords generally remain responsible for structure, heating, hot water, and essential systems, while tenants are usually expected to handle day-to-day care (for example, replacing lightbulbs or keeping the property reasonably ventilated). Make sure the agreement matches what was promised during viewings, including any agreed work (such as repainting) and whether the property is furnished, part-furnished, or unfurnished.

Deposits, fees and your rights

Up-front payments are common, but not everything is permitted. In England, the Tenant Fees Act restricts what landlords and agents can charge tenants. The biggest legitimate costs are typically the first rent payment, a holding deposit (commonly capped at one week’s rent), and the tenancy deposit (often capped at five weeks’ rent where the annual rent is below the higher threshold set in law). You should receive clear written confirmation of how a holding deposit will be treated, including circumstances where it may be retained.

Your tenancy deposit should be protected in a government-approved deposit protection scheme within the required time limits, and you should receive prescribed information about it. To reduce the chance of disputes, take photos on move-in day, ensure the inventory and check-in report are accurate, and report issues promptly in writing. If something breaks, keep records of messages and access attempts; documentation often matters as much as the underlying issue.

What to know about Right to Rent rules

Right to Rent checks require landlords (or agents acting for them) to confirm that adult occupants have the legal right to rent in England. In practice, this means you may be asked for original identity and immigration documents, or to share a Home Office online “share code” if you have digital status. Checks are about eligibility, not personal preference, and should be applied consistently to avoid discriminatory practices.

Prepare early if your circumstances are complex (for example, you have a time-limited right to rent, recently changed your name, or you are new to the UK). If you are renting as a group, each adult will usually need to be checked. Clarify who will live at the address and whether any later additions are allowed, since adding occupiers can trigger further checks and potentially require written consent.

Real-world cost planning in London often comes down to cash flow in the first month. Many renters need funds for (1) the holding deposit, (2) the tenancy deposit, and (3) the first rent instalment before move-in. You may also need to budget for moving costs, basic furnishings, and initial bills. While prohibited fees are restricted, charges can still arise from tenant “default” (for example, a lost key) or from changes you request (such as varying the tenancy), so it is worth checking the contract wording for any permitted charges and how they are calculated.

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

A final practical step before signing is to confirm the property’s compliance basics: a valid Energy Performance Certificate (EPC), a current gas safety record where gas is present, smoke alarms, and (where applicable) a carbon monoxide alarm. Pair that with a careful read of the tenancy terms and a realistic first-month budget, and you will be in a stronger position to sign with confidence and fewer surprises later on.