Renting your first home: everything you need to know

Renting your first place can feel like a lot, especially with things like deposits, referencing and contracts to think about. But the good news is, with the right prep, the process can be simpler than it might seem at first.

First off, what’s happening in the rental market right now? Every three months, we take an in-depth look at what’s happening in the rental market to understand how prices are changing across Great Britain, and to get an idea of how competitive the market is for tenants.

In the final three months of 2025, average rents fell slightly, by 1.1% or £15 – this was only the second time in the last five years that we’ve recorded a quarterly drop. And while rents remain higher than a year ago, the pace of increase has slowed significantly. Annual rental growth in 2025 was +2.2% (+£29), making it the slowest end-of-year growth since 2018, and a clear shift away from the sharp rises seen in recent years.

At the same time, the level of competition between renters has eased. The average number of enquiries per property fell from 14 in 2024 to 10 in 2025. Overall, we’re in a market that’s calmer and more predictable, which might be reassuring if you’re thinking of moving in 2026.

In this guide, we’ll break down:

• how renting works
• what you’ll need before you start
• how much it really costs

Whether you’re moving out for the first time or just want a clearer idea of the process, this guide is for you.

What does renting actually mean?

Renting means paying to live in a property owned by a landlord, and manged by either themselves or a letting agent. While these tenancies were previously fixed term (such as for 6 or 12 months), the Renters’ Rights Act will now mean you’ll rent a home on a ‘rolling’ basis – giving you more freedom to stay or leave the property.

Unlike buying a home, you won’t:

• be responsible for major repairs
• be tied to one place long-term

How much does it cost to get a place to rent?

This is one of the most asked questions, and one of the biggest things to consider when you’re looking to rent.

In most cases, you’ll need:

• Holding deposit: to secure the property (typically 1 week’s rent)
• Deposit: usually 5 weeks’ rent
• First month’s rent: paid upfront

Example: If rent is £1,200 per month, you might need to pay around £2,500–£3,000 upfront.

In terms of how much rent you might be able to afford and other costs to consider, we take a closer look at renting affordability in more detail here.

You’ll also need to budget for things like:

• bills (energy, water, Wi-Fi)
• council tax (unless you’re exempt)
• moving costs

How the renting process works

A step-by-step guide to securing a rental home:

1. Get yourself prepped for renting
2. Search properties
3. Book and attend viewings
4. Make an offer
5. Go through referencing checks
6. Pay deposit and first month’s rent
7. Sign your tenancy agreement
8. Move in 🎉

This can all happen in a matter of days, so it can be beneficial to get ready. You can also track your progress towards moving into a rented property by filling in your personal renter checklist.

How competitive is renting right now?

Despite competition easing compared to a few years ago, renting is still highly competitive in many parts of the UK.

Even though supply has improved and price increases have slowed, demand is still strong – with multiple renters often competing for the same property.

That means:

• properties can go quickly
• being organised makes a big difference
• having documents ready can help you secure a place faster

Your rights as a renter (2026 update)

There are major changes coming with the Renters’ Rights Act, which are expected to reshape the rental market.

From 1 May 2026, key changes include:

• more consistency around the renting process
• clearer rental pricing rules
• stronger protections for tenants