No More Rent Bidding Wars

The Renters’ Rights Act introduces new rules to make the private rented market fairer and more transparent, particularly when it comes to how rents are advertised and agreed.

Under the new law, landlords and letting agents can no longer encourage or accept bids above the advertised rent. This measure aims to prevent “rent bidding wars,” ensuring all prospective tenants have an equal opportunity to secure a home at the stated price.

• Published rent must be honoured:

  Landlords and letting agents must clearly state an “asking rent” for every property. That figure is binding, tenants cannot be encouraged or permitted to offer more. 

• No bidding over the asking rent:

  Tenants may not be invited to compete or bid above the published rent, and landlords cannot accept an offer that exceeds it.

• Fair competition for tenants:

  All applicants should be treated equally, and properties should be let based on objective criteria such as references and affordability, not willingness or ability to pay more.

• Transparency and enforcement:

  Local councils will have powers to investigate breaches, and fines of up to £7,000 may be issued for non-compliance. 

Rent bidding had become increasingly common in competitive markets, driving up prices and often excluding tenants on modest incomes.

These new rules aim to:

• Create a fairer and more predictable process for tenants.

• Ensure that advertised rents reflect the true market value.

• Promote transparency and professionalism across the sector.

• Reduce tension between landlords, agents, and applicants caused by unclear or unfair practices.

• Always advertise a single, clear rent figure.

• Do not suggest, encourage, or accept offers above that figure, even if a tenant volunteers to pay more.

• Keep accurate records of marketing materials and tenant communications in case of future disputes.

• Work with letting agents who are members of professional bodies such as Propertymark to ensure compliance.

1. Can tenants still offer to pay more rent voluntarily?

No. Even if a tenant offers a higher rent, landlords and agents must not accept it. The property must be let at the advertised rent.

2. What happens if a landlord re-advertises the property at a higher rent?

This is permitted, but only before any offer has been accepted. Once the property is advertised, the listed rent must apply to all applicants.

3. How will this be enforced?

Local councils have powers to issue civil penalties of up to £7,000 for breaches, rising for repeat offences. 

4. Does this apply to all properties?

Yes, the rule applies to all private rented sector properties, regardless of size or type.

5. What about competitive areas with high demand?

Landlords can review their rent level before advertising to ensure it reflects the current market, but once advertised, it cannot be exceeded.

The end of rent bidding marks a move towards a more stable, transparent, and fair rental market.

By setting clear rules on rent advertising and negotiation, the Renters’ Rights Act aims to protect tenants from unfair competition, and help landlords and agents build trust through consistency and professionalism.