Renting in London: how it works for Australians

London rentals move fast and cost a lot, but since May 2026 the rules are firmly on the tenant's side. Know them and you'll rent with confidence.

The short version

The average London rent was £2,338 a month in September 2026, up 3.5% on a year earlier. Kensington and Chelsea averaged £3,739 [1].
From 1 May 2026, new private tenancies in England are rolling (periodic). No fixed end date and no "no fault" evictions [2].
Landlords can't take rent before you sign, and then only one month in advance. Bidding above the advertised price is banned [2][3].
Deposits are capped at five weeks' rent (under £50,000 a year) and must be protected in a government scheme within 30 days [3][4].
Council tax and bills are usually on top of rent. Budget for both.

What London rent actually costs

The Office for National Statistics tracks rents across the UK. London sits well above everywhere else [1].

Measure (ONS, September 2026)	Monthly rent
London average, all property types	£2,338
Kensington and Chelsea, borough average	£3,739
UK average	£1,406

These are averages across studios, flats and houses, and across new and existing tenancies. Asking rents on listing sites for a fresh tenancy are often higher than the ONS average, especially in zones 1 and 2.

Most Australians starting out rent a room in a flatshare rather than a whole flat. That's how the maths works on a first London salary. Expect outer zones and areas a short train ride from the centre to stretch your money further.

The new rules: the Renters' Rights Act

England's Renters' Rights Act 2025 is the biggest change to private renting in decades. Most of it took effect on 1 May 2026 [2]. Note it covers England, so London, not Scotland or Wales.

Rolling tenancies, not fixed terms

New tenancies are now assured periodic tenancies. They roll on weekly or monthly with no end date. Existing assured shorthold tenancies converted automatically on 1 May 2026 [2].

For you this means:

You can leave with two months' written notice, timed to your rent day [2].
Your landlord usually has to give four months' notice and must state a legal ground. "No fault" section 21 evictions are gone [2].
A landlord can't use the "I'm selling" or "I'm moving in" ground in the first 12 months [2].

That flexibility suits Youth Mobility visa holders well. You aren't locked into a 12-month lease when your plans change.

No bidding wars

Adverts must state a price, and landlords and agents can't ask for or accept offers above it [2]. If an agent hints that "others are offering more", that's a red flag.

Limits on rent in advance

Landlords can't take any rent before the tenancy agreement is signed. After signing, they can ask for up to one month's rent in advance if you pay monthly [2][3]. The old trick of asking overseas tenants for six or twelve months upfront is no longer allowed for new private tenancies.

Rent increases once a year

Rent can go up once a year, and not in the first 12 months of a new tenancy. The landlord must use the official form (Form 4A) and give at least two months' notice. You can challenge an increase that's above market rent [2].

Pets and discrimination

You can ask to keep a pet, and the landlord must consider it and give a reason if they say no. Landlords also can't refuse you because you have children or receive benefits [2].

Deposits and upfront costs

Here's what can legally be taken before you move in, under the Tenant Fees Act rules and the 2026 changes [3].

Payment	Legal limit	Notes
Holding deposit	1 week's rent	Reserves the flat while checks run
Security deposit	5 weeks' rent (annual rent under £50,000); 6 weeks if £50,000 or more	Must be protected in a scheme
Rent in advance	1 month (or 28 days if not paid monthly)	Only after you sign
Agency "admin" fees	Banned	Fees for referencing, viewings or contracts can't be charged

Your landlord or agent must register the deposit with the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme within 30 days. When you move out, they must return it within 10 days of you both agreeing the amount. If you disagree, the money stays protected while the dispute is settled [4].

Ask for the scheme name and certificate. If you don't get it, chase it.

Right to rent and referencing

Landlords in England must check every adult tenant's right to rent [5]. As an Australian on a visa, you'll do this with a share code. You generate it through your UKVI account and give it to the landlord with your date of birth. They check it online in minutes [5].

Referencing is the other hurdle. Agents usually want proof of income, an employer reference and sometimes a previous landlord reference. New arrivals often have none of these in the UK. A few ways around it:

Bring documents from Australia. A rental ledger, a reference from your Aussie property manager and recent payslips help.
Show your job offer. A signed contract with salary is often enough.
Use a guarantor service if you have no UK guarantor. Check the fee and terms carefully.
Start with a room in a flatshare. Live-in landlords and flatmates are usually less fussy than big agencies.

How to find and secure a flat

Good rooms and flats can go within a day or two. Get organised before you start viewing.

Set your budget including bills. Council tax, energy, water and broadband are usually extra on whole-flat lets. Room shares often include some bills.
Pick two or three areas based on your commute, not just postcode.
Search the major portals and flatshare sites, and post in community groups.
View in person or by live video. Never pay anything before seeing the place, in person or live.
Have your pack ready: passport, share code, job offer or payslips, references and bank details.
Read the agreement. Check the rent, rent day, what's included and who handles repairs.
Check the deposit is protected within 30 days [4].
Do a photo inventory on move-in day. Date-stamped photos save arguments later.

Council tax and bills

Council tax is a local property tax. In a whole-flat rental, the tenant usually pays it. In 2026–27 the average Band D bill set by inner London boroughs is £1,240, and £1,769 in outer London, with the Greater London Authority adding £511 on top at Band D [6]. Your actual bill depends on your property's band and borough. If you live alone, ask your council about a single-person discount.

Energy is the other big one. Ofgem's price cap put a typical household's annual dual-fuel bill at £1,723 from October 2026 [7]. A small flat usually uses less, but London winters are long, so budget for heating.

Watch out for these scams

An "overseas landlord" who asks for a deposit before a viewing.
A rent well below similar places in the same street.
Pressure to pay by bank transfer to a personal account before signing.
Anyone asking for rent before the agreement is signed. That's now against the rules [2][3].

When in doubt, ask in Cooee UK, our Facebook group for Australians in the UK. Someone has usually seen the same listing, or the same trick.

Renting in London: what Australians need to know before signing