Updated October 2026
In short: Most London landlords take a deposit, capped at five weeks' rent. "No deposit" options usually mean a deposit replacement scheme: you pay a non-refundable fee (often around one week's rent) instead of a deposit, but you're still liable for damage and unpaid rent at the end of the tenancy. They help cash flow, but cost more over time.
| Option | Upfront cost | Refundable? | Liability at end |
|---|---|---|---|
| Traditional deposit | Up to 5 weeks' rent | Yes, minus fair deductions | Covered from the deposit |
| Deposit replacement scheme | Fee, often around 1 week's rent | No | You still pay for damage or arrears |
| Council deposit or bond scheme | Little or none | Depends on the scheme | As agreed with the council |
| Lodging with a resident landlord | Often lower | Varies | As agreed |
Before choosing a deposit replacement
- Compare the fee with what you'd earn back from a normal deposit
- Read how end-of-tenancy claims are handled
- Check whether the fee recurs each year
- Confirm it's optional: landlords must still offer a normal deposit route
Other ways to reduce upfront costs
- Rent in advance is capped at one month since 1 May 2026
- Holding deposits are capped at one week's rent
- Agent fees are banned for tenants
- Councils may help with deposits for eligible households
How Fraser Bond helps
| 1 | Register Budget, areas and move date. |
| 2 | Match Flats where upfront costs fit your situation. |
| 3 | Apply Quick, fair referencing. |
| 4 | Move in Clear tenancy and protected deposit (or agreed alternative). |
Related guides
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