The Renters Rights Bill is set to bring the most transformative changes to the private rental sector in over 30 years, aiming to make renting fairer and more secure for tenants.
Among its key provisions is a ban on the increasingly common practice of bidding for rental properties—a frustrating experience familiar to at least 26% of Londoners. By eliminating property bidding wars, the bill seeks to level the playing field and address the inequalities plaguing the rental market. Under the planned legislation, landlords or agents could be fined up to £7,000 if they encourage or accept bids.
Bidding for a property occurs when prospective tenants are encouraged to offer above the advertised rent to secure a home. For example, if a property is listed at £1,500, interested parties compete by increasing their offers to outbid one another.
An anonymous estate agent has exclusively revealed to City News the widespread prevalence of rental bidding in London’s housing market. “It happens pretty much every time,” they revealed, describing a highly competitive environment where properties often attract multiple offers within 24 hours of being listed. They admitted that “rental bidding is a key part of letting agents’ processes as they want the highest price possible to make as much commission as possible.”
To achieve this, estate agents frequently employ high-pressure tactics, such as “creating a sense of urgency or instilling fear of missing out,” and sometimes resort to deception. This includes harmless exaggerations—like overstating interest in a property—as well as “outright lies such as ‘there’s another offer on the table, so you need to raise your price.'”
These practices ultimately benefit both landlords, who receive higher rents, and estate agents, who earn larger commissions from the inflated prices. City News reached out to the British Property Association for comment on these claims but, at the time of writing, had not received a response.
Labour Councillor Sam Foster of Southwark Council has called on estate agents to end this practice, stating, “Exploitative bidding wars are worsening London’s housing crisis.” He added, “The broken housing market has been stacked against renters for a long time.”
Southwark faces particular challenges, with housing costs rising faster than elsewhere in London. In October 2024, the average monthly private rent in Southwark was £2,298—higher than London’s average of £2,172 and significantly above Great Britain’s £1,307, according to the Office for National Statistics (ONS).
“They’re being priced out of owning second homes”
Will Cutbill, a Southwark resident, shared his experience on having his rent increased. His landlord had warned him a year in advance that the rent would rise from £2,300 to £2,450, and they ultimately agreed on £2,400. Will expressed satisfaction with the negotiation, appreciating the early notice.
He also sympathised with landlords, noting that “they’re being priced out of owning second homes because of all the taxes that are now posed upon them”. Here, Will is referring to the 3% stamp duty surcharge and changes to capital gains tax, which he believes are putting financial strain on property owners. Rising costs are forcing many landlords to either raise rents or sell their properties.
Addressing the housing supply crisis
Meera Chindooroy, Deputy Director for Campaigns, Public Affairs & Policy at the National Residential Landlords Association, echoes a similar sentiment. She emphasises that banning bidding wars addresses only a symptom of the broader housing crisis.
“None of this will address the intense competition for properties, [with] 21 people currently chasing every available home to rent,” Chindooroy said. She stresses that the underlying issue is a lack of housing supply.
Without significant efforts to increase the availability of rental homes, the imbalance of supply and demand will mean tenants will continue to face limited choices and elevated costs. Despite calls to end exploitative bidding wars, the practice remains deeply entrenched in London’s housing market.
While the Renters Rights Bill is a promising start, addressing London’s rental crisis requires tackling the chronic housing shortage. Increasing housing supply and implementing rent regulation policies – such as Los Angeles’ Rent Stabilization Ordinance – could help make homes more affordable and secure.
These systemic changes are essential for long-term solutions to London’s rental market challenges.
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HeadlineEstate agents and landlords who profit from rental bidding may be at threat from upcoming bill
Short HeadlineEstate agent: "we lie for higher commission"
StandfirstRental bidding drives up housing prices, but the Renters' Rights Bill aims to ban it, amid claims it's "worsening London’s housing crisis."
The Renters Rights Bill is set to bring the most transformative changes to the private rental sector in over 30 years, aiming to make renting fairer and more secure for tenants.
Among its key provisions is a ban on the increasingly common practice of bidding for rental properties—a frustrating experience familiar to at least 26% of Londoners. By eliminating property bidding wars, the bill seeks to level the playing field and address the inequalities plaguing the rental market. Under the planned legislation, landlords or agents could be fined up to £7,000 if they encourage or accept bids.
Bidding for a property occurs when prospective tenants are encouraged to offer above the advertised rent to secure a home. For example, if a property is listed at £1,500, interested parties compete by increasing their offers to outbid one another.
An anonymous estate agent has exclusively revealed to City News the widespread prevalence of rental bidding in London’s housing market. “It happens pretty much every time,” they revealed, describing a highly competitive environment where properties often attract multiple offers within 24 hours of being listed. They admitted that “rental bidding is a key part of letting agents’ processes as they want the highest price possible to make as much commission as possible.”
To achieve this, estate agents frequently employ high-pressure tactics, such as “creating a sense of urgency or instilling fear of missing out,” and sometimes resort to deception. This includes harmless exaggerations—like overstating interest in a property—as well as “outright lies such as ‘there’s another offer on the table, so you need to raise your price.'”
These practices ultimately benefit both landlords, who receive higher rents, and estate agents, who earn larger commissions from the inflated prices. City News reached out to the British Property Association for comment on these claims but, at the time of writing, had not received a response.
Labour Councillor Sam Foster of Southwark Council has called on estate agents to end this practice, stating, “Exploitative bidding wars are worsening London’s housing crisis.” He added, “The broken housing market has been stacked against renters for a long time.”
Southwark faces particular challenges, with housing costs rising faster than elsewhere in London. In October 2024, the average monthly private rent in Southwark was £2,298—higher than London’s average of £2,172 and significantly above Great Britain’s £1,307, according to the Office for National Statistics (ONS).
“They’re being priced out of owning second homes”
Will Cutbill, a Southwark resident, shared his experience on having his rent increased. His landlord had warned him a year in advance that the rent would rise from £2,300 to £2,450, and they ultimately agreed on £2,400. Will expressed satisfaction with the negotiation, appreciating the early notice.
He also sympathised with landlords, noting that “they’re being priced out of owning second homes because of all the taxes that are now posed upon them”. Here, Will is referring to the 3% stamp duty surcharge and changes to capital gains tax, which he believes are putting financial strain on property owners. Rising costs are forcing many landlords to either raise rents or sell their properties.
Addressing the housing supply crisis
Meera Chindooroy, Deputy Director for Campaigns, Public Affairs & Policy at the National Residential Landlords Association, echoes a similar sentiment. She emphasises that banning bidding wars addresses only a symptom of the broader housing crisis.
“None of this will address the intense competition for properties, [with] 21 people currently chasing every available home to rent,” Chindooroy said. She stresses that the underlying issue is a lack of housing supply.
Without significant efforts to increase the availability of rental homes, the imbalance of supply and demand will mean tenants will continue to face limited choices and elevated costs. Despite calls to end exploitative bidding wars, the practice remains deeply entrenched in London’s housing market.
While the Renters Rights Bill is a promising start, addressing London’s rental crisis requires tackling the chronic housing shortage. Increasing housing supply and implementing rent regulation policies – such as Los Angeles’ Rent Stabilization Ordinance – could help make homes more affordable and secure.
These systemic changes are essential for long-term solutions to London’s rental market challenges.
