When a rental property is in high demand, a flurry of offers from hopeful tenants can create a bidding war. But from the 1st of May, the Renters’ Rights Act will ban this way of doing business.
Instead, landlords must publish a fixed rent in the advert and not accept anything higher. Here’s information on the new rules.
What’s the reason behind the ban?
Bidding wars are an increasingly common practice in England’s private rented sector. A study by the National Residential Landlords Association (NRLA) found that 10% of polled landlords have experienced a bidding war for their property. From their point of view, this is no bad thing as the rental price can end up way above the advertised figure. But for tenants, of course, it’s the opposite: they can get priced out of an already competitive market. This is particularly worrying for people in areas like London and Brighton, where demand often outstrips the supply of decent homes.
As part of their election campaign, the Labour government promised to put an end to what they call the ‘unfair practice of pitting renters against each other’. And indeed, the Renters’ Rights Act 2025 makes good on this by formally banning rental bidding wars.
Arguably, in 2026, tenants need this more than ever. As the recent increase in mortgage rates makes it harder for people to buy their first property, many families and individuals will need to rent for longer. Without the new legislation, we’d see even more competitive bidding.
What are the new rules?
From the 1st of May this year, rental bidding wars will be outlawed in England. Landlords must publish a clear asking price for the property and cannot accept any bids above this amount, even if the tenants volunteer to pay more. (Note: they can still accept offers below the asking price.)
Neither can a landlord more subtly encourage tenants to offer more during private conversations. Everything must be clear, upfront and formally stated in written offers for the property.
If landlords and letting agents don’t follow these new rules, tenants can contact their local council, which can take action, including imposing civil penalties of up to £7,000. And multiple civil penalties may be handed out for repeat breaches.
How can landlords prepare?
We recommend you think carefully about a suitable asking price for the property since this won’t be a starting point but a fixed amount. You might also want to read up on other parts of the Renters’ Rights Act, which changes how landlords must manage their properties.
For example, from the beginning of May:
- Section 21 ‘no fault’ evictions are being abolished
- Instead, landlords will rely on the updated Section 8
- Fixed-term tenancies will be replaced with periodic ones
- Rent increases must be in line with market rates
We’ll also post updated rules for rent in advance on the Winkworth blog later this month. Stay tuned for more insights and guidance.
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