Rental bidding has become one of the most controversial practices in the private rented sector.
In areas of high demand, tenants have sometimes felt pressured to offer more than the advertised rent in order to secure a property. This has created frustration, uncertainty and concern that applicants are being pushed into informal auctions for homes.
The Renters’ Rights Act changes that position.
The key message is simple: landlords and letting agents must advertise a clear rent and must not ask for, encourage or accept offers above that advertised price.
What is rental bidding?
Rental bidding happens when prospective tenants compete by offering more than the advertised rent.
This may happen openly, where an agent tells applicants that higher offers will be considered.
It may also happen more subtly, where applicants are encouraged to improve their offer, make themselves more attractive financially or outbid others.
The new rules are designed to stop rental homes being marketed in a way that creates a bidding war.
Why rental bidding has been banned
The policy aim is to make the letting process clearer and fairer.
Tenants should be able to see the advertised rent and understand the price at which the property is being offered.
Landlords and agents should not use tenant demand to push applicants above that price.
In practical terms, the rules are intended to reduce:
- bidding wars;
- uncertainty for applicants;
- pressure on tenants to overbid;
- unclear pricing;
- unfair competition;
- poor advertising practice;
- complaints about letting processes.
Landlords may still choose the advertised rent, but once the property is advertised, they should not invite or accept a higher offer.
The advertised rent matters
The advertised rent is now central.
A landlord or letting agent should include a specific rent in the advert.
That rent should be the rent the property is being offered for.
Landlords should avoid vague wording such as:
- “offers over”;
- “rent from”;
- “guide rent”;
- “minimum rent”;
- “bids invited”;
- “best offers considered”;
- “price on application”;
- “rent negotiable upwards”.
The advert should be clear.
Prospective tenants should not have to guess what rent they need to offer.
What landlords and agents must not do
Landlords and agents should not:
- ask tenants to offer more than the advertised rent;
- encourage applicants to increase their offer;
- tell applicants that higher offers will be favoured;
- accept an offer above the advertised rent;
- invite sealed bids;
- use “best and final rent” wording;
- suggest that applicants can improve their chances by offering more rent;
- advertise at one rent and then ask for a higher rent at viewing;
- tell tenants another applicant has offered more and invite a counter-offer;
- use online, email, text or verbal messages to encourage overbidding.
The rule applies to the letting process, not just the wording of the advert.
What if a tenant offers more without being asked?
Landlords may be tempted to argue that the tenant offered more voluntarily.
That is still risky.
The Government guidance says landlords and letting agents cannot ask for, encourage or accept an offer above the advertised price.
That means the safest approach is to refuse any offer above the advertised rent and explain that the property can only be considered at the advertised rent.
Landlords should not treat a voluntary higher offer as an opportunity.
Can landlords advertise at market rent?
Yes.
The ban on rental bidding does not mean landlords cannot set the rent at a market level.
Landlords can decide what rent to advertise, based on the property, market conditions, location, size, condition and comparable evidence.
However, the rent advertised should be the rent sought.
If the landlord wants £1,100 per month, the property should not be advertised at £1,000 to generate interest and then pushed higher through competition.
The price should be clear from the start.
Can landlords reduce the rent?
The rules are designed to stop offers above the advertised rent.
They do not prevent a landlord from reducing the rent if the property does not attract suitable interest.
For example, a landlord may choose to lower the advertised rent after limited enquiries.
However, landlords and agents should keep records showing when the advertised rent changed and make sure applicants are treated fairly.
Can tenants negotiate down?
A tenant may still ask whether the landlord would accept a lower rent.
The bidding ban is aimed at upward bidding above the advertised price.
Landlords may choose whether to accept a lower offer, but they should be careful to avoid confusion, unfair treatment or unclear advertising.
If the landlord decides to change the rent, the advert and communications should be updated clearly.
Multiple applicants
The ban does not mean landlords must accept the first applicant.
Landlords can still choose between applicants.
However, the decision should not be based on who offers more than the advertised rent.
Instead, landlords should consider fair and relevant factors such as:
- affordability;
- references;
- ability to meet the advertised rent;
- suitability for the property;
- household size;
- occupancy limits;
- right to rent checks where applicable;
- tenancy history;
- guarantor support where appropriate;
- ability to move within the required timescale.
Selection should be evidence-based and consistent.
Affordability checks
Affordability remains important.
Landlords are entitled to check whether the applicant can afford the advertised rent.
That may include reviewing:
- income;
- benefits;
- savings;
- pension income;
- employment;
- self-employment;
- guarantor support;
- credit history;
- previous rent payment history.
The key point is that affordability checks should relate to the advertised rent, not to a higher rent created through bidding.
Rent in advance
Landlords should also be cautious about rent in advance.
The wider rental reform agenda includes restrictions around upfront rent payments, and landlords should avoid using rent in advance as a way of recreating bidding pressure.
For example, landlords should not invite applicants to improve their position by offering large upfront payments where that would conflict with current rules.
The safest approach is to keep tenant selection fair, transparent and consistent.
Letting agent instructions
Landlords should make sure their letting agent understands the rules.
A landlord should not tell an agent to “get the highest offer” or “see what tenants will bid”.
Agent instructions should be clear.
Landlords should ask:
- what rent will be advertised?
- how will enquiries be handled?
- will applicants be told higher offers are not accepted?
- how will multiple applicants be assessed?
- how will communications be recorded?
- what wording will be used in adverts?
- who approves any rent changes?
- how will rejected higher offers be recorded?
If an agent breaches the rules, the landlord may still face practical and reputational consequences.
Advertising wording
Advertising wording should be straightforward.
Better wording may include:
- “Rent: £950 per calendar month.”
- “The property is advertised at £950 per calendar month.”
- “Applicants will be assessed on affordability, references and suitability.”
- “Offers above the advertised rent will not be accepted.”
- “The advertised rent is fixed for the purpose of applicant assessment.”
Landlords should avoid wording that suggests the rent is an opening bid.
Viewings
Viewings should not become informal auctions.
Agents and landlords should not tell viewers:
- “someone else has offered more”;
- “you may want to increase your offer”;
- “best and final offers are needed”;
- “the landlord will consider higher bids”;
- “you can secure it by paying more”;
- “there is a lot of interest, so make a strong rent offer.”
If there is high demand, the landlord can still choose a suitable applicant based on fair criteria.
They cannot use that demand to push up the rent above the advertised price.
Records landlords should keep
Landlords and agents should keep records of the letting process.
This may include:
- the original advert;
- rent stated in the advert;
- date the advert went live;
- any later rent changes;
- applicant enquiries;
- viewing notes;
- application forms;
- affordability assessments;
- referencing results;
- reasons for applicant selection;
- records of higher offers being declined;
- agent communications;
- landlord instructions;
- final tenancy rent.
Good records can help show that the landlord did not encourage or accept rental bidding.
Social media and informal marketing
The rules should also be considered when marketing through informal channels.
This may include:
- Facebook posts;
- WhatsApp messages;
- email lists;
- local groups;
- landlord networks;
- signs;
- printed flyers;
- direct messages;
- agent mailing lists.
Landlords should not think that informal marketing is outside the rules.
If the property is being advertised, the rent should be clear and bidding should not be encouraged.
Enforcement risk
Local authorities are responsible for enforcing rental bidding breaches.
If a landlord or agent asks for, encourages or accepts a higher offer, enforcement action may follow.
There may also be complaints from applicants who believe they were treated unfairly.
Landlords should assume that emails, texts, portal messages and viewing notes may be relied on as evidence.
Why this matters under wider rental reform
The rental bidding ban sits alongside wider changes to the private rented sector.
These include stronger rules on discrimination, more focus on rental advertising, restrictions on rent in advance, changes to possession grounds and future Ombudsman arrangements.
Together, these reforms point towards a more transparent and documented letting process.
Landlords should expect advertising, pricing and tenant selection to come under more scrutiny.
Common landlord mistakes
1. Advertising low to generate interest
The advertised rent should be the rent being sought.
2. Accepting voluntary higher offers
The safest approach is to decline offers above the advertised rent.
3. Asking for “best and final” rent offers
This can create clear bidding risk.
4. Letting the agent handle it without instructions
Landlords should give clear instructions to avoid rental bidding.
5. Using vague wording
Terms such as “offers over” or “guide rent” should be avoided.
6. Treating viewings as negotiations
Viewings should not be used to push rent above the advert.
7. Keeping no records
Records may be important if a complaint is made.
Practical checklist for landlords
Landlords should:
- set the advertised rent carefully;
- include a specific rent in the advert;
- avoid “offers over” wording;
- avoid encouraging higher offers;
- refuse offers above the advertised rent;
- instruct agents clearly;
- use fair applicant selection criteria;
- keep copies of adverts;
- record rent changes;
- document applicant selection;
- keep communications professional;
- avoid informal bidding through messages or viewings;
- review advert templates.
The key takeaway
Rental bidding is banned.
Landlords and agents must advertise a clear rent and must not ask for, encourage or accept offers above that advertised price.
This does not prevent landlords from setting a realistic market rent, checking affordability or choosing between applicants.
But it does mean the letting process needs to be clear, fair and properly documented.
In the modern private rented sector, the rent in the advert is not the starting point for an auction. It is the price at which the property is being offered.
NetRent does not provide legal advice. This article represents our understanding of rental property law at the time of writing.
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