In competitive rental markets, bidding wars have become routine. Tenants turn up to viewings and are told that other “applicants” have offered above the asking price, agents call back to say the landlord will accept the highest offer, and prospective renters end up paying hundreds per month more than the property was listed for.
Thankfully, in England, this sleazy practice was banned on May 1st.
The Renters' Rights Act makes it an offence for landlords and letting agents to invite, encourage, or accept offers of rent above the advertised asking price. Now, every property advertised for let on an assured periodic tenancy must state a specific asking rent. Not "rent on application", not a range, not "offers over", a number.
Once that rent is published, the landlord and their agent are prohibited from:
If a tenant volunteers a higher offer unprompted, the landlord still can't accept it. The ban covers all offers above the stated rent regardless of who initiates them.
The Renters’ Rights Act introduces serious civil penalties for breaches, up to £7,000 for a first offence and rising to £40,000 for repeat or serious breaches. Local authorities are responsible for enforcement and have been given expanded investigatory powers under the Act, including the ability to inspect business premises and request data from letting agents.
The Act is deliberately broad on this point. Any communication that creates pressure on a tenant to offer more than the listed price falls within scope. Common practices that are now illegal include:
Letting agents who facilitate any of these practices are equally liable, and the penalty applies to the agent as well as the landlord.
Alongside the bidding ban, the Act restricts how much rent a landlord can demand upfront.
For new tenancies granted on or after May 1st, 2026, a landlord can’t require the tenant to pay more than one month's rent before the tenancy starts. They also can’t demand rent in advance of the date it becomes due once the tenancy is running. If the tenancy agreement includes a term requiring advance payment beyond one month, that term is unenforceable and is treated as requiring payment on the normal monthly due date instead.
There is one narrow exception to this rule, however: If a tenancy agreement is signed before the tenancy start date, the landlord can require rent for the first period to be paid between the signing date and the start date. This means a landlord might ask for the first month's rent at the point of signing, even if the tenancy doesn't start for a few days or weeks.
Tenants are also free to voluntarily choose to pay more than one month’s rent in advance after signing, and the landlord can accept it. Note, that’s after signing; the landlord can’t accept more than one month’s rent before signing, nor can the landlord require more than one month’s rent under any circumstances.
All this is, of course, separate from the deposit, which remains capped at five weeks' rent for annual rents below £50,000 and six weeks for £50,000 or more under the Tenant Fees Act 2019.
The advance rent restrictions only apply to new tenancies created on or after May 1st, 2026. If you're on an existing tenancy that requires quarterly or annual rent payments in advance, those terms remain enforceable after conversion, even though your tenancy technically becomes a monthly assured periodic tenancy on May 1st.
This exemption exists because changing pre-existing payment terms would create cash-flow problems for landlords who relied on the advance rent arrangement when they agreed to the tenancy. It applies to the advance rent provisions only; the bidding ban applies to all lettings from May 1st, regardless of when the tenancy started.
When an assured periodic tenancy ends, you have the right to a refund of any rent you paid that covers days after the end date. Under the old system, this only happened if your tenancy agreement specifically said so. Under the new Act, the right to a pro-rata refund is automatic and applies to both existing tenancies and new ones.
If your tenancy ends on the 15th and you've already paid rent for the full month, your landlord must refund the remaining days.
The Renters' Rights Act also introduces a new right for tenants to challenge the starting rent within the first six months of a tenancy.
If you believe the rent you agreed to when you signed your tenancy is above the open market rate for the property, you can refer it to the First-tier Tribunal for determination. Under the new law, the test for the Tribunal is whether the rent exceeds the market rent, whereas before, the test was whether the rent was “significantly higher” than the market rate, which was a much higher bar to clear.
The Tribunal applies the same process as for a rent increase challenge: It assesses comparable rents in the area, takes the property's condition into account, and can reduce the rent to whatever it determines is the market rate, but it can never increase the rent above what you agreed. The application fee is £47.
This right exists alongside the bidding ban and is designed to prevent scenarios in which tenants agree to above-market rents because they feel pressured during the application process, even if no bidding took place. You don't need to prove that bidding happened to challenge starting rent; you just need to show that the rent is above market.
The ban relies on local authority enforcement, and local authorities have historically been under-resourced for private rented sector regulation. The Act gives them stronger powers, including expanded civil penalties, investigatory access, and mandatory reporting on enforcement activity, but whether those powers translate into consistent action across all councils remains to be seen.
Tenants are advised to keep potential evidence of rent bidding to aid enforcement efforts. If, for example, a landlord or agent asks you to offer above the advertised rent, suggests that other tenants have offered more, or runs any kind of informal auction, save the messages, screenshot the listing, and report it to your local council's private rented sector enforcement team. The penalties are serious enough to deter compliant agents, but without tenant complaints, non-compliance in high-demand areas may go unaddressed.
It's worth noting that the ban doesn't cap or control rents. A landlord can set the initial asking rent at whatever they want, but the ban prevents the price from being bid up above the advertised figure. That doesn't prevent the advertised figure from being set high in the first place, and it’s why tenants now have the right to challenge potential above-market rents at the Tribunal within six months.
1. "My landlord can't raise the rent anymore." — Not true. The bidding ban only applies to the initial letting. Rent increases during a tenancy are handled through the Section 13 process, so your landlord can still propose one increase per year with two months' notice.
2. "I can offer more to secure the property." — No. Even if you volunteer a higher amount, the landlord can't accept it. The ban covers all offers above the stated rent, regardless of who initiates them.
3. "I have to pay six months' rent upfront to secure the tenancy." — Not on any new tenancy from May 1st, 2026. The maximum that can be required in advance is one month's rent. If a landlord or agent asks for more, it's unenforceable.
4. "The bidding ban means rents will go down." — Not necessarily. Landlords are free to set asking rents at whatever level they choose. The ban prevents competitive escalation above the listed price, but it doesn't prevent high asking prices.
5. "I can't do anything if I think my rent is too high." — You can. Within the first six months, you can challenge your starting rent at the First-tier Tribunal. During the tenancy, you can challenge any Section 13 increase at the same Tribunal. In both cases, the Tribunal can reduce the rent but can never raise it.
If a landlord or letting agent asks you to bid above the advertised rent, or requires more than one month's rent in advance on a new tenancy, report it to your local council's private rented sector enforcement team. Keep screenshots of any listings, messages, or emails.
Shelter's helpline is available on 0808 800 4444. Citizens Advice can help online or through your local bureau.
No. From May 1st, 2026, it's a criminal offence for landlords and letting agents to invite, encourage, or accept offers above the advertised asking rent. This applies even if you volunteer a higher amount unprompted. The landlord still can't accept it.
For new tenancies from May 1st, 2026, the maximum that can be required in advance is one month's rent. If a landlord or agent asks for more, the term is unenforceable. This is separate from the deposit, which remains capped under the Tenant Fees Act 2019.
No. The advance rent restriction only applies to new tenancies created on or after May 1st, 2026. If your existing tenancy requires quarterly or annual payments, those terms remain enforceable after conversion.
Yes. Within the first six months, you can refer the starting rent to the First-tier Tribunal if you believe it's above the open market rate. The Tribunal can reduce it, but can never increase it above what you agreed. The application fee is £47.
A civil penalty of up to £7,000 for a first offence, rising to £40,000 for repeat or serious breaches. The penalty applies to both the landlord and any letting agent who facilitates the bidding. Local authorities are responsible for enforcement.
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