Rental Bidding Is Now Banned - What Landlords Need to Know in 2026

If you’ve let property for a long time, there’s a good chance you’ve experienced a rental market where demand outstripped supply and applicants voluntarily offered above asking rent.

For years, phrases like “we’ve had a higher offer” or “best and final rent” became common in some parts of the market.

That has now changed.

Since 1 May 2026, the Renters’ Rights Act introduced a ban on rental bidding in England. Landlords and letting agents must advertise a clear asking rent and cannot invite, encourage or accept offers above that amount.

For self-managing landlords especially, this is one of the easiest rules to breach accidentally.

What Is Rental Bidding?

Rental bidding happens when a prospective tenant offers more than the advertised rent in order to secure a property.

Examples might include:

• Advertising at £1,350 pcm and accepting £1,450 pcm

• Telling applicants another tenant has offered more

• Asking for “best and final offers”

• Advertising a rent range and encouraging applicants to compete

• Creating pressure that makes tenants feel they need to pay more

Under the new rules, these approaches are no longer permitted.

What Does The New Law Actually Require?

Under the current rules:

✓ Advertise a single rental figure
✓ Let applicants apply at that figure
✓ Assess tenants based on suitability - not who pays the most
✓ Keep evidence of your advertised rent

You must not:

✗ Encourage higher offers
✗ Accept higher offers
✗ Use wording that suggests competitive bidding
✗ Suggest applicants increase their offer to secure the property

Government guidance confirms that landlords and agents must not act in a way that leads a prospective tenant to believe they need to offer more than the advertised rent.

What Happens If You Get It Wrong?

Local authorities now have stronger enforcement powers.

If they believe rental bidding rules have been breached, landlords or agents can face a civil penalty of up to £7,000 for an initial breach, with substantially higher penalties possible for repeat offences.

This isn’t intended to catch good landlords out, but it does mean systems and processes matter more than ever.

Does This Mean Landlords Can’t Achieve Market Rent?

No.

Landlords can still set rent at market level.

The key difference is that the decision needs to happen before marketing begins, not afterwards through competing offers.

That means:

• Reviewing comparable evidence

• Looking at local demand

• Setting realistic pricing

• Adjusting before launch if required

Once the property is marketed, the advertised figure becomes the figure.

Personal Economy Lettings Perspective

This is one of those changes that sounds small on paper but changes day-to-day lettings activity.

For many experienced landlords, accepting a higher offer may previously have felt commercially sensible.

Today, compliance sits alongside cashflow.

At Personal Economy Lettings, we believe good lettings should still achieve strong outcomes for landlords – but through correct pricing, good marketing, robust referencing and selecting the right tenant, not bidding pressure.

As legislation evolves, having a process becomes just as important as having demand.

A note from Lisa Bailey

“Most landlords aren’t trying to break the rules, they’re simply working in ways that have been accepted for years. Rental bidding is one of those areas where a small process change now can prevent a much bigger problem later.”

Need Support But Want To Stay In Control?

If you’re self-managing and trying to keep up with the Renters’ Rights changes, our Lettings PA support service is designed to help landlords stay compliant while remaining involved in the management of their property.

No pressure. Just practical support and clear guidance.

📞 0117 985 6703
🌐 personaleconomylettings.co.uk

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Source inspiration: Independent landlord commentary and UK Government guidance on rental bidding and the Renters’ Rights Act.