New laws that will ban rental bidding wars in England have been welcomed by campaigners, who warn that further action will be necessary to tackle unaffordable rents. Housing activists are satisfied with the proposed legislation, which would legally require landlords and letting agents to publish a rental property’s asking price and prevent them from accepting bids exceeding that figure. Housing campaigners say the government should focus on increasing the stock of affordable homes.
Jason Phillips, a business analyst, was outbid several times on flats when trying to find a new home in north London’s Crouch End area. He went to around 40 viewings over a period of just over a year but was told one two-bed flat had gone for £2,500 a month – £700 higher than the asking price of £1,800. He eventually moved to Stevenage, Hertfordshire. Phillips believes that, as well as being unaffordable, rental bidding can be extremely frustrating.
Renters usually face intense competition for homes in desired locations and are increasingly experiencing bidding battles against each other. The UK government has unveiled proposals to prohibit this practice, a move welcomed by tenant advocacy group Generation Rent. Conor O’Shea of Generation Rent argues, however, that “not just band-aid interventions like an end to rental bidding, but more fundamental solutions, such as council housebuilding programmes” will be required.
Australia is one of the few countries to introduce measures against rental bidding, though only Queensland and Northern Territory have outlawed the acceptance of rents exceeding the advertised price. Joel Dignam, at Better Renting, contends that legislation should be extended to cover the acceptance of such bids. Dignam adds that enforcement remains a problematic area, with repeat offenders often being given just a minimal fine
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