Academics from Queen Mary University of London have initiated a ground-breaking project to investigate the phenomenon of bidding wars in the capital’s private rental market. The study, spearheaded by two researchers, aims to delve into the dynamics of the rental sector and the role of bidding by prospective tenants in driving up rents.
In a briefing note, the researchers outlined their objectives: “Our study seeks to understand the position of different rental market actors in bidding processes and to determine whether and how bidding contributes to increasing rents.”
The note suggests that anecdotal evidence points to tenant bidding as a potential factor in the recent surge in rental prices. “Housing and economic policy debates and statistics rarely capture the nuances of how real estate and rental market dynamics—such as house prices and rents—result from the organizational, economic, and routine practices of specific groups of actors like letting agents, landlords, and tenants,” the note states.
The researchers emphasize their goal to assess and analyse the private rental market’s operations, focusing on the under-examined practice of bidding to rent. They aim to explore the relationship between broader real estate trends and the everyday interactions that shape them.
As part of the study, the university has circulated a questionnaire seeking insights from both tenants and landlords. The survey guarantees anonymity for respondents, with pseudonyms used to ensure privacy and remove any identifying information.
One question for landlords asks: “Would you say that bidding tends to be led by you as the landlord, the letting agent, or prospective tenants?”
Notably, the briefing note does not detail the due diligence process for respondents. The questionnaire has gained visibility through social media, thanks to promotion by the Generation Rent activist group.
This initiative marks a significant step in understanding the intricacies of London’s rental market and could influence future housing policies and practices.