Rental Bidding Wars

Rental bidding Wars, a common feature of city rental markets, will be a thing of the past under the Renters’ Rights Act.

ABSOLUTE BAN ON HIGHER OFFERS

The Act prohibits landlords and letting agents from requesting, encouraging, or accepting any rent offers above the advertised level. The ban still applies if the tenant willingly offered more than the asking rent. Additionally, landlords and agents must list a specific asking rent, eliminating vague or “from” pricing models.

ENFORCEMENT AND PENALTIES

Local authorities will be empowered to impose fines and civil penalties on non compliant agents and landlords. These civil penalties will vary in severity depending on the offence; local authorities could impose fines as high as £7,000 and permanently mark a landlord’s record in the PRS Database.

Implications

Some landlords and letting agents will have to adjust their practices, while tenants will enjoy a fairer rental experience.

TRANSPARENCY IN LISTINGS

The idea behind the change is that the requirement for accurate pricing in advertising will lead to tenants being able to find properties that truly match their budgets. Agents will have to remove all “offers over” or negotiable rent language in adverts and guide their landlords on the best prices they can list their properties for. With that being said, the ban on rental bidding wars may stretch tenant affordability further as 19% of surveyed landlords in the State of the Lettings Industry 2025 said they will raise their marketed price in response.

NO MORE RENT IN ADVANCE

The Renters' Rights Act abolishes rent in advance, raising concerns among landlords and agents as it has often enabled minority groups, such as foreign students or those with criminal records or CCJs, who struggle with traditional referencing checks to secure housing.

"Although the ban is designed to clamp down on rogue landlords making unreasonable demands, it punishes overseas tenants as well as those with irregular pay, poor credit histories or criminal records. Whereas rent in advance was a useful tool for them to secure a property, they could now find themselves further marginalised.

” David Smith Partner, Spector, Constant, and Williams Solicitors

How we can assist

GOODLORD GUARANTOR

Our chosen Rent Guarantee insurer and Tenancy Platfrom, Goodlord is launching Goodlord Guarantor, a new product solution that helps agents say “YES” to more tenants.

Designed to support the ban on rent in advance and upfront rent payments, it makes it easier for students and international renters to secure their next home, with up to 3 years of protection included