Written by Daniel Andrews, Partner & Solicitor, Cramp & Mullaney LLP
Last reviewed: April 2026
Anyone who has searched for a rental property in England in recent years will probably be familiar with the experience of being told, often by a letting agent, that other applicants are willing to pay above the asking rent and that you should consider whether you can do the same. This practice, which effectively turned the letting of residential properties into an informal auction, is prohibited from 1 May 2026 under the Renters’ Rights Act 2025.
What the Ban Actually Covers
Sections 55 and 56 of the Act introduce a clear prohibition. From 1 May 2026, a landlord or letting agent must advertise a residential property for rent at a fixed asking price. They cannot accept a rent above that advertised figure, even where the prospective tenant offers it voluntarily and without any encouragement. They cannot hint to applicants that a higher offer is needed, disclose what other applicants have offered, or create any situation designed to push applicants towards offering more than the advertised rent.
The prohibition applies to both landlords and letting agents. Where an agent runs a bidding process without the explicit knowledge or direction of the landlord, the consequences for the landlord will depend on the circumstances, but the Act makes clear that both parties face potential liability.
Why This Reform Was Needed
The rental market in England had become severely imbalanced between supply and demand. Rightmove reported in 2024 that approximately 17 households were competing for each advertised rental property. In that environment, informal bidding was a rational response by some landlords and agents seeking to maximise rental income, even if it caused significant harm to prospective tenants who either could not afford to compete or felt pressured into offering more than the property was worth to them.
The harm was not simply financial. The process was opaque and arbitrary. Whether a prospective tenant secured a property often depended less on their suitability as a tenant and more on whether they could afford to outbid others. The Act addresses this by requiring the process to be transparent and based on the advertised price.
Penalties for Breach
Local housing authorities can issue civil penalty notices to landlords and agents who breach the prohibition. The starting penalty is £7,000 for a first offence, rising to £40,000 for repeat breaches. Councils have had enhanced investigatory powers since December 2025 and are resourced to use them.
What This Means in Practice
For prospective tenants in Kent and across England, the practical message from 1 May 2026 is that you should feel confident applying at the advertised rent. You are under no obligation to offer more, and any suggestion from a landlord or agent that you should do so is unlawful. If you encounter this behaviour, make a note of it and consider whether to report it to your local housing authority.
For landlords and letting agents, the message is equally clear. Advertise at the rent you want to achieve, assess applicants on the basis of their suitability as tenants through proper referencing, and make your selection on that basis. The prohibition on bidding does not prevent you from exercising a reasonable choice between applicants, but that choice must be based on legitimate criteria.
If you are a landlord or tenant in Kent and need advice on the Renters’ Rights Act 2025 or any landlord and tenant matter, Cramp & Mullaney LLP can help. We advise clients across Kent and the South East from our offices in Eastbourne (01323 720581) and Battle (01424 533222), East Sussex. We offer a fixed fee 30-minute initial consultation.
This article is for general information only and does not constitute legal advice. If you need advice about your specific situation, please contact Cramp & Mullaney LLP on 01323 720581 (Eastbourne) or 01424 533222 (Battle), or email us at info@cmlaw.co.uk. We are authorised and regulated by the Solicitors Regulation Authority (SRA No. 598851).
