Rent bidding and market value

One of the more targeted reforms in the Renters’ Rights Act is the ban on rent bidding. The practice has become increasingly common in the competitive rental market, and the change is designed to promote fairness and affordability.

Rent bidding occurs when prospective tenants are encouraged to offer more than the advertised rent in order to secure a property. The majority of landlords do not encourage this, but when it happens it leads to inflated rents and an uneven playing field for tenants.

What you need to know

• Rent bidding is banned – you must advertise a fixed rent.
• Landlords and letting agents can no longer solicit higher offers from prospective tenants.
• Set rent based on market value and comparables.
• Ensure advertising is clear, consistent, and compliant.

 

What's changing?

Under the new legislation, landlords and letting agents will be prohibited from inviting or encouraging rent bids above the advertised price. This rule applies to all private rented properties and is enforceable by local authorities.

What this means

• Your property must be advertised at a single, fixed rental price.
• You cannot solicit higher offers from prospective tenants.
• All applicants must be considered equally based on the advertised terms.

 

Setting a fair market rent

While rent bidding is banned under the new legislation, landlords are still free to set their own rent, as long as it reflects the market value. Setting a realistic and competitive rent from the outset reduces void periods and helps to attract reliable tenants.

To determine a fair market rent

• Research comparable properties in your area.
• Consider factors like location, size, condition, and amenities.
• Be transparent about what’s included in the rent (e.g. bills, furnishings).
• Get a valuation from a letting agent to determine a price that reflects market rate.

 

Advertising requirements

The Act also introduces stricter advertising standards. Letting agents will also be held accountable for compliance, so landlords working with agents should ensure their listings meet the new requirements.

All rental listings must

• Clearly state the total rent payable.
• Avoid any language that implies rent is negotiable or subject to bidding.
• Be consistent across all platforms (e.g. agency websites, property portals).

 

Enforcement and penalties

Local authorities will have the power to investigate and penalise breaches of the rent bidding ban. This could include fines or other enforcement actions if landlords or agents are found to be encouraging bidding or misrepresenting rental prices.

The new rules mean

• Local councils will be able to impose civil penalties on landlords and anyone acting directly or indirectly on their behalf up to £7,000 for breaches.

• Landlords and letting agents can receive multiple civil penalties for continued and repeat breaches.

• Tenants will be able to pursue a breach through their local council and seek redress through the new Private Rented Sector Ombudsman and letting agent redress schemes.