Rental bidding — Prohibition under the Renters' Rights Act

The Renters’ Rights Act introduced a prohibition on rental bidding wars in England. From 1 May 2026, landlords and letting agents are banned from inviting or accepting offers above the advertised asking rent. This guide explains what the rule means in practice and what landlords and agents must change.

What the rule is

The Renters’ Rights Act makes it illegal for landlords and letting agents to:

• Advertise a rental property without a specific asking price (to create a de facto auction)
• Invite prospective tenants to bid above the asking rent
• Accept unsolicited offers above the asking rent where the landlord or agent has encouraged competition

The rule targets the practice — common in high-demand areas — where multiple applicants for a property are told about competing offers and implicitly or explicitly encouraged to outbid each other.

When it applies

• From 1 May 2026 for all rental advertising and tenancy negotiations in England
• Applies to landlords and their agents equally
• Covers both direct lettings and properties let through letting agencies or platforms

What landlords must do

• Always advertise with a fixed asking rent — no “offers invited” or “guide price” wordings
• Do not tell prospective tenants about competing offers to encourage higher bids
• Do not accept above-asking offers once you have advertised a price
• Train any letting agents acting on your behalf on these requirements — you can be held responsible for agent conduct

What you can still do

• Set the asking rent at whatever level you consider appropriate for the market
• Refuse a prospective tenant for legitimate reasons (e.g. they fail referencing)
• Accept the first suitable applicant who meets your referencing criteria at the asking rent
• Increase the asking rent on a new listing if market conditions have changed (but only before listing, not as an in-process auction)

Common mistakes

• Using vague pricing in listings — “from £1,500 pcm” or “price on application” invites bids and could be treated as prohibited conduct
• Mentioning other applicants — telling a prospective tenant “we have two other serious applicants” implies bidding is possible
• Accepting above-asking offers informally — even if a tenant volunteers a higher amount without solicitation, if the landlord accepts rather than declines, this may breach the rules

FAQ

What if a tenant spontaneously offers more? If a tenant genuinely and spontaneously offers above the asking rent with no encouragement from the landlord or agent, the position is less clear. However, the safest approach is to decline and proceed at the advertised rent. Accepting unsolicited higher offers could still be problematic if a pattern of behaviour exists.

Does this apply to renewals? The bidding prohibition applies to advertising and letting a property. Rent increases during an existing tenancy are governed by the separate rent increase rules (once per year via prescribed notice). The bidding rules primarily apply at the point of advertising and tenancy agreement.

Who enforces this? Local housing authorities enforce the bidding prohibition. Penalties under the Renters’ Rights Act can include financial penalties. Letting agents also face scrutiny from their redress schemes.

What if my agent does this without my knowledge? You should review your agency agreement to ensure your agent understands and complies with the prohibition. You may have liability for agent conduct.