How to Determine the Rental Cost of Property in the U.K.

Rental costs in much of the U.K. are on the rise as the demand for rented homes becomes larger and people pull out of the shaking real estate market. Determining the cost of a rental involves looking at the monthly payment as well as the cost of getting into the property using a rental agent.

Difficulty: Moderate

Instructions

1. Determine the location where you plan to live. Consider transportation needs, desired property size, as well as the cost. The rent in London and other larger cities is much higher than towns a few miles outside the city limits. Expect to pay 10 to 30 percent more in the city.

2. Use websites that list properties for rent in the U.K. to determine property values. Websites that specialize in U.K. rentals, like Primelocation.com, offer a range of search capabilities that allow you to price homes that fit your needs.

3. Take note of the differences in U.S. and U.K. rental property, specifically in size. A flat (apartment) will be much smaller in size than most U.S. apartments. Additionally, some properties in the U.K. are rented by the week, not monthly.

4. Seek out a letting agent to help you find a property to rent in the U.K. This common practice is similar to hiring a real estate agent to purchase property. The agent will help you find the home that fits your needs and negotiate prices as well.

5. Know all of the extra costs of renting in the U.K., including administration charges, referencing charges, tenancy deposits (about one month's rent paid up front) and the retaining deposit (which is usually one month rent.) These charges are applicable at the time of renting and payable to the letting agent.

Resources

• Visit Primelocation, a leading property locator in the U.K.