Money
What you actually pay before you get the keys
The rent figure in the listing is not what you need in the bank. Moving into a London rental means finding a lump sum, usually between two and three months' worth of rent, at a point when you may also be paying rent somewhere else.
Here is exactly what makes up that number, what it looks like at real London prices, and which charges an agent is not allowed to make.
The three things you definitely pay
Nearly all of the upfront cost is these three items, and two of them are capped by law.
- Holding deposit — up to one week's rent, paid to take the property off the market. It is credited against your rent or deposit when you sign, so it is not an extra cost, just an earlier one.
- Tenancy deposit — up to five weeks' rent where the annual rent is under £50,000, or six weeks where it is £50,000 or more. Held in a government-approved protection scheme, not by the landlord.
- First month's rent — due before or on the day you move in.
What that looks like in practice
For a £1,000 room, the deposit at five weeks is about £1,154 and the first month is £1,000 — roughly £2,154 in total, of which £231 will have been the holding deposit paid earlier.
For a £1,400 one-bed, the deposit is about £1,615 and the first month £1,400 — roughly £3,015.
For a £2,000 flat, the annual rent is £24,000, so the five-week cap still applies: about £2,308 of deposit plus £2,000, or roughly £4,308. The six-week cap only kicks in above £50,000 of annual rent, which means a monthly rent above about £4,167.
The costs nobody quotes you
These are not charged by the agent, but they land in the same fortnight and people routinely forget them.
- Moving the stuff — a van and two people across London is commonly £300 to £600 depending on distance, floor, and how much you own.
- The first energy bill and broadband setup, plus any standing charges that start the day you take over the meter.
- Council tax from your move-in date, unless it is included in a room rent. Depending on the borough, that is between about £86 and £217 a month at Band D.
- The furnishing gap — even a furnished flat rarely comes with anything in the kitchen you would want to cook with.
What an agent cannot charge you
Since the Tenant Fees Act 2019, most of the fees that used to pad this process are banned in England. An agent or landlord cannot charge you for viewings, for referencing, for an inventory or check-in, for drawing up the tenancy agreement, or for simply renewing it.
They can charge for a small, defined set of things: the rent itself, the two capped deposits, a change to the tenancy that you request (capped at £50 unless the landlord can show greater reasonable costs), early termination that you request, lost keys, and late rent beyond fourteen days.
If you are asked for an 'admin fee', an 'application fee' or a 'referencing fee', it is unlawful. Say so, and ask for it to be removed in writing.
Getting the deposit back at the end
Your deposit must be protected in one of the three approved schemes within 30 days of being taken, and you should be told which. If it was never protected, you may be entitled to compensation of between one and three times the deposit.
Most disputes are about pre-existing damage. The single most effective thing you can do is a thorough, date-stamped photographic inventory on the day you move in, including everything that is already worn, chipped or stained. Fair wear and tear is not deductible; damage is. The difference is decided on evidence, and the tenant with photographs almost always wins it.
Frequently asked questions
How much money do I need upfront to rent in London?
Budget about 2.2 months' rent. That is a tenancy deposit of up to five weeks plus the first month's rent, with the one-week holding deposit credited against it rather than added. On a £1,200 room that is roughly £2,585; on a £1,800 flat, roughly £3,877.
Can a letting agent charge an admin or referencing fee?
No. In England, the Tenant Fees Act 2019 banned charging tenants for referencing, admin, inventories, check-in, drawing up the tenancy or renewing it. Only rent, the two capped deposits, tenant-requested changes, lost keys and late-rent interest are permitted.
Is the holding deposit an extra cost on top of the deposit?
No. It is capped at one week's rent and is credited against your first rent or your tenancy deposit when you sign. You only lose it if you withdraw, provide false information, or fail the right-to-rent check.
What happens if my deposit was not protected?
Your landlord must protect it in an approved scheme within 30 days and tell you which one. If they did not, you can apply to the county court, and the landlord may be ordered to repay the deposit plus compensation of one to three times its value.
Next steps
Where these figures come from
- Tenant Fees Act 2019 — permitted payments and deposit caps (England).
- Government-approved tenancy deposit protection schemes.
- Band D council tax figures for 2026/27.
This guide is general information, not financial or legal advice. Rules described apply to England. Confirm anything you are relying on with the relevant council, scheme or a qualified adviser before acting on it.
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