Rental bidding
Rental bidding is the practice of inviting or accepting offers above the advertised rent from prospective tenants. For example, asking applicants to outbid each other in a competitive market. It can happen formally through an “offers over” or sealed-bid process. Alternatively it can happen informally, when an agent hints that higher offers will be looked on more favourably.
Bidding might seem to maximise income, but it is increasingly seen by policymakers as unfair and inflationary, especially in tight local markets. Under the Renters’ Rights Act there is a clear move towards greater transparency and consumer-style protection in the Private Rented Sector. That includes:
Expecting adverts to show a genuine, realistic rent, not a low “headline” designed to trigger a bidding war.
Scrutiny of letting agents’ practices, including pressure selling or suggesting that applicants must bid over the asking price to be considered.
Potential local or national rules restricting, recording or banning open bidding, especially where it leads to discrimination or undermines affordability tests.
Good landlords treat the advertised rent as the true asking price, assess applicants primarily on suitability and affordability, and avoid auction type tactics. Aggressive rental bidding may damage reputation, increase void risk if tenants over-stretch and then default, and attract regulatory or ombudsman attention in the post–Renters’ Rights environment.
