The Rental Bidding Ban

From 1 May 2026, rental bidding is banned. You cannot ask for, encourage, or accept offers above the advertised rent. This applies equally to landlords and letting agents. You must advertise a fixed rent and stick to it.

In competitive rental markets, prospective tenants have sometimes offered to pay above the advertised rent to secure a property — or landlords and agents have invited offers above the asking price. The Renters' Rights Act 2025 makes this practice illegal:

• You cannot invite offers: Advertising or marketing language that invites tenants to offer more than the stated rent is prohibited
• You cannot encourage bidding: Telling prospective tenants that others have offered more, or suggesting they could offer more to improve their chances, is banned
• You cannot accept above-asking offers: Even if a tenant voluntarily offers more than the advertised rent, you must not accept the higher amount
• Fixed advertised rent: You must state a specific rent amount in your advertisement. "Rent from £X" or "offers in the region of" is not acceptable

The ban applies to both landlords and letting agents. If your agent encourages or facilitates rental bidding, both of you may face penalties.

• Price it right first time: Since you cannot benefit from competitive bidding, setting the right rent from the start is crucial. Overpricing leads to void periods; underpricing means you leave money on the table for 12 months (since increases are limited to once per year).
• Tenant selection by quality, not price: Without bidding, your choice of tenant should be based on referencing quality — credit history, landlord references, employment stability — not who offers the most.
• Market research: Invest time in understanding comparable rents in your area. Your agent should provide evidence-based rental valuations.
• Interaction with rent increases: Remember that once a tenant is in place, rent can only increase once per year via the Section 13 process. The advertised rent effectively sets your income for the first 12 months.

• 1 May 2026: Rental bidding ban comes into force
• Penalties: Up to £7,000 for initial breaches, up to £40,000 for serious or repeated breaches
• Enforcement: Local authorities have powers to investigate and penalise

Q: A prospective tenant offers more than the advertised rent without me asking. What do I do?

A: You must decline the higher offer. Accept them at the advertised rent if they pass referencing, or decline for legitimate referencing reasons — but you cannot accept the higher rent amount.

Q: Can I reduce the advertised rent?

A: Yes. The ban prevents you from accepting more than the advertised rent. You're free to agree a lower rent if you choose to.

Q: What if I advertise at one rent and then realise it's too low?

A: You would need to withdraw the advertisement and re-advertise at the new rent. You cannot accept above the advertised amount for the current listing. Be aware that frequently changing advertised rents could attract scrutiny.

Q: Does this apply to renewals?

A: The bidding ban applies when marketing properties to prospective tenants. For existing tenants, rent increases are governed by the Section 13 process (see our Rent Increases tip).

• Ensure all property advertisements state a specific fixed rent amount
• Review your marketing language — remove anything that could be interpreted as inviting offers
• Instruct your agent (if you use one) that rental bidding must not be encouraged
• Invest in proper market research before setting your advertised rent
• Focus tenant selection on referencing quality rather than willingness to pay more
• Talk to your agent about their evidence-based rental valuation process