The UK’s Private Rented Sector (PRS) is facing some of the most significant reforms in decades. At the centre of this transformation is the Renters’ Rights Bill, which introduces a sweeping ban on bidding wars for rental properties. While the proposal is intended to protect tenants from being forced into unsustainable rental bidding situations, the implications for landlords, letting agents, and even renters themselves are far-reaching.
In this article, we’ll break down exactly what a bidding war is, how the ban on bidding wars will work under the new legislation, and what landlords and letting agents should be preparing for in advance of these changes. We’ll also explore the broader market impact – including potential unintended consequences for rental values, tenant screening, and competition in the rental market.
A bidding war occurs when more than one prospective tenant is interested in the same property and begins offering higher and higher rents in an effort to outbid each other. This is particularly common in high-demand areas, where the number of available homes to let is significantly outpaced by tenant demand.
At present, there’s no legal restriction stopping a landlord or their agent from accepting offers above the advertised rent. In fact, it’s a common and accepted way of testing the market and achieving the highest possible rental income, something most landlords understandably seek in order to generate an adequate return on their investment.
These competitive bidding situations can escalate quickly, particularly in cities such as London, Manchester, Bristol, and other rental hotspots. As a result, tenants often feel pressure to stretch beyond their original budget just to secure a tenancy, a situation the Government has labelled as unfair and exploitative.
As stated by the Government:
“The Renters’ Rights Bill will end the unfair practice of pitting renters against each other in bidding wars. We will level the playing field for renters and crack down on the minority of unscrupulous landlords who make the most of the housing crisis by forcing tenants to bid for their properties.”
The ban on bidding wars is introduced in Chapter 6 of the Renters’ Rights Bill and is designed to bring greater clarity and fairness to the process of setting and negotiating rent.
Here’s what the new rules mean in practice:
Letting agents and landlords will be required to publish a clearly stated rental price when marketing a property. While simple “To Let” signs on windows or boards are still permitted without a price, any online or printed listings must show a proposed rent that’s fixed and transparent.
This aims to ensure that all potential tenants are aware of the rental expectations upfront and that no hidden negotiation or escalation takes place behind the scenes.
Once the property is listed with a rental amount, no offers above that figure can be accepted – even if a tenant willingly makes a higher offer. The only acceptable variation from the advertised rent is a lower offer, which the landlord can still choose to accept.
This is a fundamental shift. Currently, higher offers are welcomed in competitive markets, but under the Bill, doing so will become unlawful.
Landlords and letting agents will be strictly prohibited from inviting or encouraging offers above the stated rent. This includes any indirect or verbal suggestions that a higher offer might be necessary to win the property.
Even if a tenant decides, unprompted, to offer more money, the landlord must not accept it. This is to prevent loopholes or informal “under-the-table” bidding from continuing in a more discreet form.
Local authorities will be responsible for enforcing the new rules. A breach of the bidding war ban could result in a civil penalty of up to £7,000.
Repeat offences within a five-year period could lead to additional financial penalties, and offending landlords or agents will have their actions recorded on the new PRS (Private Rented Sector) Database, which will be made public. This could damage reputations and impact the ability to let properties in future.
Although the ban on bidding wars is designed to protect tenants, property professionals and industry stakeholders have raised some valid concerns about the knock-on effects of the legislation. The reform could influence not just prices, but tenant selection and property marketing practices as well.
If landlords know they won’t be able to entertain higher offers once a listing goes live, they may compensate by listing their properties at the top end of the market – or even slightly above – just to ensure they’re not losing out on income.
While this might bring greater consistency to pricing, it could also lead to increased asking rents across the board, particularly in areas where demand continues to outpace supply. In effect, some tenants may find themselves priced out of properties they previously could have negotiated for.
With price no longer a negotiable factor in winning a tenancy, landlords and agents are likely to put more weight on tenant references, creditworthiness, employment status, and rental history.
While reference checks are a standard part of the lettings process, the ban on bidding wars could prompt landlords to become increasingly selective, prioritising financial stability and perceived reliability over other factors.
There’s concern that this shift might unintentionally disadvantage renters with non-traditional financial backgrounds – such as freelancers, international students, or individuals with limited UK rental history – even if they’re perfectly capable of paying the rent.
Smaller landlords and independent agencies may struggle with the administrative burden of ensuring compliance, particularly if they manage only a few properties or are less familiar with the legislative changes. The risk of significant fines and public PRS database listings could cause some landlords to exit the sector altogether, reducing available rental stock even further.
With the Renters’ Rights Bill set to be implemented in the near future, property professionals should begin reviewing and updating their marketing and lettings processes now.
Key steps include:
There’s no doubt that the ban on bidding wars is well-intentioned. The Government wants to create a rental market that’s fairer, more transparent, and less stressful for tenants. However, as with any major reform, there are trade-offs.
For landlords and letting agents, the key takeaway is to start preparing now. While flexibility in rent negotiation will be curtailed, ensuring your property is fairly priced and competitively presented from the outset will help maintain strong interest without falling foul of the law.
For tenants, the change should offer greater clarity and predictability, although it remains to be seen how rental values will be affected once the ban becomes reality.
Stay up to date on how the Renters’ Rights Bill could affect you. Read our other guides:
Renters' Rights Bill Update – July 2025
Read here: https://www.chbl.uk/en/explore/Renters-Rights-Bill-Update-July-2025
Renters' Rights Bill: Abolishing Fixed-Term Tenancy Agreements
Read here: https://www.chbl.uk/en/explore/Abolishing-Fixed-Term-Tenancy-Agreements
Selling Property After the Renters' Rights Bill: Section 8 Explained
Read here: https://www.chbl.uk/en/explore/What-Landlords-Need-to-Know-About-Selling-Their-Property
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