A Guide to Renting a Property in London

As you know, renting is a comprehensive subject, and some might feel overwhelmed, especially if it’s your first time living in London or being a tenant entirely. Here, we will discuss everything you need to know about renting in London for beginners to the subject. Use our table of contents to jump straight to the topic that interests you the most, or read the entire article to be fully prepared for anything!

Contents

Legal requirements for renting in London

Every landlord in the UK is legally required to check the tenant’s right to rent. This includes citizens of Britain as well as foreigners. So, to be able to rent a place in London for the long term, you must show proof that you can legally reside in the country. 

You can check the full list of acceptable documents with more detail on the governmental websites, but here we will give you a few examples. For rent in London, you might need to present: a British passport, biometric residence permit, eVisa (for the citizens of the European Economic Area countries), EUSS Certificate of Application, a current passport showing that you are allowed to stay in the country for a limited time period, and more.

Common fees when renting an apartment in London

Some rules regarding rental fees in the city changed significantly in 2019 thanks to the introduction of the Tenant Fees Act. This statute regulates certain charges to reduce costs for tenants and minimize the number of fees the landlords can require. 

Here, we will go through all the expenses you may face renting in this city apart from the monthly rent itself. 

Security deposit

Similarly to other landlords across the world, property managers in London ask tenants for a security deposit. There is a rule that the deposit cannot exceed five weeks’ rent if the annual rental price of the property is below £50,000. And, if it’s above £50,000, landlords may request up to six weeks’ rent as a security deposit. 

Utility bills

You can expect to pay utility bills for electricity, gas, and water (some part of them or the whole amount might be included in the price depending on your contract) and other bills such as Wi-Fi or TV. Make sure to double-check if any of the utilities are already included in the price and ask your landlord how much extra you might pay on average per month.

Council tax

Finally, you should budget for a council tax, which is an annual municipal tax paid in installments; its amount depends on the property’s value and even the borough you live in. It is usually paid by the person who lives in the apartment, so you might expect to pay it as a tenant. You can expect a council tax to be from £500 to £1,000 per year on average, but it may vary significantly.

Other fees and expenses

In addition to the security deposit, utility bills, and council taxes, the property manager can only ask for the following:

• Holding a deposit, which cannot exceed one month’s rent,
• Late payment fee, if the rent payment is late for 14 or more days, 
• The fee to cover the cost of replacing a lost key,
• Fee for the breach of contract if the tenant moves out before the end of the lease agreement,
• Payment to change the tenancy is capped at £50. It is applicable if the tenant decides to find a new roommate, get a pet, or make any other significant changes in the lease agreement.

Note: Landlords and letting agents are prohibited from charging any other fees, such as referencing fees, administration fees, or inventory fees.

How much does it cost to rent here?

As of winter 2023, the average monthly rental cost in London is £3,553. Just like any other world capital, this city has a very vast range when it comes to the prices for rental apartments. The cost can vary greatly depending on many factors, such as the location, size, condition, and amenities of the property. Additionally, a large role plays whether you rent for a short or long term. You can turn to our rental pricing statistics to learn more about how much is a flat in London, especially if you want to check details for a specific type of property or the number of bedrooms.

Looking for a rental in this city, you should know that the most expensive areas include Knightsbridge, Chelsea, Kensington, and Mayfair. As you could have guessed, not only rental prices here are incredibly high, but also the cost of living, so prepare to spend more on groceries and everyday necessities if you decide to reside in one of those neighborhoods.

On the other hand, some of the cheapest neighborhoods are Sutton, Bexley, Croydon, and Bromley. A few of these areas are undergoing gentrification, so it might be a great time to rent (or even purchase) a property here, while others might still have some dangerous pockets, which you might want to avoid if you’re looking for a place to rent in London. 

The beauty of such a large and diverse city is that anyone can find a home that will fulfill their requirements. However, sometimes it might take time and dedication to find the exact right place.

Good neighborhoods to rent in London

We just discussed the most expensive and cheapest places to rent in the city. However, it does not necessarily mean that one of them will also be the best possible place to live for you. In fact, many excellent boroughs in London are not as painfully overpriced as you might think! Here are some examples of fantastic areas you should take a closer look at.

Clapham

This charming area is mostly located in the borough of Lambeth, south from the City of London. Interestingly, it is equally attractive to anyone: young families, older residents, students, and artists. It’s known for its green spaces, including Clapham Common, as well as its lively pubs and restaurants. While some parts of this neighborhood can be fairly pricey, you can still find some affordable rentals in Clapham as well.

Shoreditch

A significant part of East London has recently become one of the trendiest parts of the city. And Shoreditch, its heart, is no exception. This neighborhood is a hub for artists, creatives, and tech startups. It’s known for its trendy bars, restaurants, galleries, and vibrant nightlife. Also, it is mecca for some fashion lovers, as it has an abundance of vintage shops, thrift stores, and local boutiques.

Brixton

This is a fun, diverse, and lively neighborhood that offers its residents an excellent quality of life. Renting in Brixton, you can expect easy access to public transportation and many local amenities, including street markets, great restaurants, and music venues. 

Note: For more neighborhoods with detailed descriptions, check our article about the best areas to live in London.

Best time to look for a new rental in London

If you ask locals, they might tell you that finding a place in this city is difficult no matter the month or season. This is somewhat true in the capital that boasts over eight million residents and masses of tourists and longer-term visitors in addition. 

However, experts state that finding flats in London is easier during the cold months: November and January through March would be your best bet. During this period, the real estate market cools down, and fewer people are looking for a new rental. Students stop moving around during this time, and psychologically people are less interested in changing their place of living when it’s cold and gloomy outside. This results in lower rental prices and a wide pool of rentals in London for the tenant.

Other things to keep in mind

• Like in many other European countries, rental properties in the UK (including London) mostly come furnished. 
• In this city, renters may find any type of property, from flats to terraced houses to single-family homes. What’s more, your rental can be either newly built or dated as far as the 18th century — London incorporates architecture from multiple styles and historical periods.
• Rental insurance is not legally required in London or Britain, but your landlord might ask you to buy one.

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We hope our short guide will help you with understanding London’s rental market and its specifics. Now that you have basic knowledge of what to expect from rentals here, take a look at rental properties in London on Rentberry!

About The Author

London, UK