One of the key reforms introduced by the Renters' Rights Act 2025 is the banning on “rental bidding”. The new rule is designed to create a fairer and more transparent rental market by preventing competition between tenants.

Under the Act, landlords and agents can no longer accept, encourage, or request that a prospective tenant offers to pay more rent than the amount originally advertised. The listed rental price must reflect the total rent sought for the property, and all applicants should be treated equally based on that stated amount. 

Enforcement and Penalties 

To ensure compliance, local authorities have been granted enhanced enforcement powers. They can investigate suspected breaches and impose civil penalties of up to £40,000 on landlords or agents found to have breached the legislation. 

How to stay compliant 

To remain compliant with the Renters' Rights Act 2025 landlords and agents should:

• Ensure transparency in advertising. Every property listing should clearly display the correct rental price. 
• Avoid any form of bidding or negotiation above the advertised rent.
• Apply fair and consistent criteria. All applicants should be assessed using the same standards.
• Keep records showing how the rental price was set and evidence that no higher offers were accepted. 

By following these steps, landlords and agents can protect themselves from enforcement action and help promote a fair and balanced rental market.