-
14/7/25 8:13 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Detailed guidance has been published by the Government explaining how the Renters’ Rights Act will stop ‘bidding wars’ once the legislation begins to be implemented next year.
On May 1, 2026 the new rules will go live, meaning that once a property is advertised to rent at a specific price, the landlord or letting agent involved cannot ask for, encourage or accept an offer that is higher than the advertised price.
This new ‘rental bidding’ rule is to be enforced by local authorities and will include online adverts on portals such as Rightmove and Zoopla, printed particulars, social media posts, emails and texts or WhatsApp conversions (pictured) and even handwritten offers.
Landlords and agents who subsequently let a property for more than the initial advertised rent will, even if a tenant has requested to pay more, be liable for a civil penalty of up to £7,000, while landlords and letting agents caught asking for, encouraging or accepting a higher rent a second time within five years can be fined up to £14,000.
The bar is also relatively low for whether a breach has taken place – the guidance says that: “Rental bidding is a civil matter so local councils must decide on the balance of probabilities whether a breach has taken place.
“This simply means that they are satisfied that rental bidding is more likely to have occurred than not.
“As local authorities are exercising a quasi-judicial function when imposing a civil penalty, they must be satisfied that credible, reliable and sufficient documentary or other evidence exists to determine a breach to the required standard.”
The Ministry of Housing, Communities and Local Government makes it clear that a breach will have taken place even if, after asking for ‘best and final offers’ for example, no offers are made and the original asking rent is agreed on. It is the ‘asking for offers’ however obliquely worded, that will be deemed to be a request to pay a higher rent.
And the ministry also highlights that landlords cannot accept a higher offer from a tenant, however genuinely made, without breaking the rules – and it will only be the landlord who pays the penalty.
Also, landlords or letting agents hoping to circumvent the rules by not revealing the rent in adverts – which currently often means putting ‘prince on application’ – will also be breaking the rules.
The Renters’ Rights Act will, also, from May 1, ban the practice of ‘rent in advance’ which many experts have predicted will see both commercial and informal rent guarantor arrangements become much more common.
Tags:
Comments