Upfront costs of private renting
The Renters' Rights Act will change rights for most private renters.
Find out about:
the main changes
when changes could start
Money before you move in
A landlord or letting agent might ask you to pay:
a holding deposit
a tenancy deposit
rent in advance
Most other tenancy related fees are banned.
You cannot be asked to pay for things like credit checks, references or inventories.
Get help with a deposit or rent in advance if you cannot afford these costs.
Holding deposits
A holding deposit is a payment to reserve a property while the landlord or agent does income or reference checks.
You cannot be asked for more than 1 week's rent.
You should usually get this money back if the landlord decides not to rent to you.
But you could lose your money if you decide not to go ahead with the tenancy without a good reason.
More about paying a holding deposit.
Tenancy deposits
Many landlords ask for a tenancy deposit before you move in.
Your landlord can ask for up to 5 weeks' rent as a deposit.
A tenancy deposit is your money. You should get it back when your tenancy ends as long as:
you do not owe any rent
you leave the property in the same condition as when you moved in
Most tenancy deposits must be protected with a scheme within 30 days of you paying it.
Deposit replacement insurance
Your landlord or agent might suggest deposit replacement insurance instead of a tenancy deposit. This is sometimes called a zero deposit option.
You pay less money up front but it could cost more in the long run.
This is because you pay a non refundable fee for the insurance policy. The landlord claims on this policy if they want to charge you for things like cleaning, damage or rent arrears.
The insurance company pays the landlord and then charges you for the money. They could take you to court if you do not pay.
You cannot be forced to pay for deposit replacement insurance. But your landlord or agent can offer it as an option if you do not have a deposit.
More about zero deposit companies.
Rent in advance
Most landlords ask for at least 1 month's rent in advance before you move in.
You might be asked for more if, for example, you:
have a low credit score or low income
cannot provide a guarantor or references
have not had a tenancy in the UK before
The Renters' Right Act will change how much rent in advance you can be asked for. But the changes have not happened yet.
More about paying rent in advance.
Utilities and household bills
You will probably have to budget for the following costs unless your contract states that they're included in your rent:
utility bills for gas, electricity and water
the internet
TV licence
Checking utility costs before you move in
A landlord must give you an energy performance certificate (EPC) for the property before your tenancy starts. EPCs are valid for 10 years.
An EPC tells you:
how energy efficient the property is
estimated costs of electricity, heating and hot water
The energy efficiency rating should be E or higher.
Check GOV.UK to see if the home you want to rent has an EPC.
Contacting gas, electricity and water suppliers
Take meter readings on the day you move in and contact the suppliers.
You have a contract with the gas and electricity suppliers from the date your tenancy starts even if they do not have your name.
You can sometimes get a cheaper tariff if you claim benefits or are on a low income. Ask your supplier directly if they have a 'social tariff'.
Citizens Advice has information about dealing with energy suppliers when you move.
Council tax if you rent the whole property
Ask who has to pay the council tax and how much it is before you sign your contract.
Most tenants have to pay council tax direct to the council. You get a council tax bill for the whole year and can usually pay in monthly instalments.
There are 2 ways you could reduce your council tax bill:
a discount
council tax support
A discount is based on your situation. For example, if you live alone or with someone disabled.
You can get council tax support from the council if your income is low. It is also called council tax reduction.
More about help with council tax.
Council tax in shared accommodation
Your landlord is usually responsible for the council tax bill if everyone living there has their own individual agreement for their room or bedsit.
If you have a joint tenancy for the whole property, then you'll usually be jointly liable for the council tax bill with the other tenants.
No one has to pay council tax if everyone who lives there is a full time student.
Last updated: 21 July 2025