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Rental bidding: a guide for local authorities and councilsÌý

The Renters’ Rights Act has changed laws aboutÌýrenting. This guidance covers Chapter 6 of the Renters’ Rights Act 2025.Ìý

Rental bidding is when potential tenants make bids to rent a property. The Renters’ Rights Act 2025 requires a landlord or letting agent to include a specific price when advertising a property. They cannot ask for, encourage, or accept an offer that is higher than the advertised price.Ìý

As a local housing authority, you are responsible for enforcing breaches relating to rental bidding for properties in your area. If you are a council that is not a housing authority, you may enforce rental bidding breaches in your area. There is more information about enforcement duties and procedures in the civil penalty notices guidance and the investigatory powers guidance.Ìý

These measures apply to all landlords or any person acting on the landlord’s behalf, such as a letting agent, who let out assured periodic tenancies in England.Ìý This includes tenancies offered by or on behalf of the Crown Estate, but not social or supported housing.ÌýÌý

The new measures apply to all assured periodic tenancies from 1 May 2026. Landlords, or anybody acting on their behalf, may be found liable for rental bidding breaches.Ìý

Websites, such as Rightmove or Zoopla, that only host adverts cannot be found liable for rental bidding breaches.Ìý

Tenants cannot be found liable for rental bidding breaches.ÌýÌý

Landlord and agent responsibilitiesÌý

When a landlord or letting agent advertises a property in writing, they must include an advertised price.Ìý

A written advert or offer can be:ÌýÌý

• an online property advertÌý

• a printed advertÌýÌý

• a social media postÌýÌý

• any digital communication, including emails, texts and direct messagingÌý

• a handwritten advert or offerÌý

It does not include ‘to let’ signs outside a property.Ìý

They must not:Ìý

• publish another advert with a higher advertised price for the same lettingÌýÌý

• publish a price range for the propertyÌý

• invite, encourage, or accept a higher offerÌý

• tell someone they have received other bids to encourage them to bid more than the advertised priceÌý

• act in any way that leads a person to believe they need to bid above the advertised priceÌý

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You may decide to impose a single financial penalty on more than 1 person for the same breach or offence. They will all be responsible for paying the penalty. More information about enforcement powers and the procedures for issuing financial penalties can be found in the civil penalty notices guidance.Ìý

First breachÌý

You can issue a civil penalty of up to £7000 if you find someone in breach of the rental bidding measures. This includes if they fail to include the proposed rent in a written advert or if they invite, encourage, or accept an offer over that amount.Ìý

Repeat breachesÌý

A repeated breach occurs when a landlord or agent commits the same breach of the rental bidding measures again. This would be within 5 years of a previous final notice or appeal decision being issued.ÌýÌý

Repeat breaches only apply if the same type of breach has happened in the 5 year period set out above.ÌýÌý

For the purposes of determining a repeated breach, it is the actions of the landlord or agent that are relevant. It does not matter whether the breach occurred in relation to the same or different properties.Ìý

The 2 types of breaches are:Ìý

• failing to include a published price in a written advertÌýÌý

• inviting, encouraging, or accepting a higher offerÌýÌý

If a landlord is issued with a fine twice within 5 years for the same type of breach, it will be considered a repeated breach.Ìý

This could be 2 instances of not including listed rent in a written advert. It could also be two instances of encouraging a higher offer.Ìý

It is not a repeated breach if a landlord has failed to include a published price and has then gone on to encourage a higher offer. These will be considered as separate breaches and a fine can be given for each breach.Ìý

When the first breach occurs, local authorities can issue a civil penalty of up to £7,000. If they repeat the same breach within 5 years, the local authority can issue a civil penalty of up to £7,000 in respect of the second breach, and an additional penalty of up to £7,000 can be issued due to that second breach being a repeat breach.Ìý

For more information on issuing civil penalties, you can refer to the civil penalty guidance.Ìý

Balance of probabilitiesÌý

Rental bidding is a civilÌýmatterÌýso local councils must decide on the balance of probabilities whether a breach has taken place. This simply means that they are satisfied that rental bidding isÌýmore likely to have occurred than not.ÌýThe seriousness of the alleged breach or the consequences of it should not affect this judgment.Ìý

As local authorities are exercising a quasi-judicial function when imposing a civil penalty, they must be satisfied thatÌýcredible,ÌýreliableÌýandÌýsufficientÌýdocumentary or other evidence exists toÌýdetermineÌýa breach to the required standard.Ìý

Local authoritiesÌýmustÌýhaveÌýevidence to support a caseÌýwhereÌýthere has been aÌýrental biddingÌýbreach.ÌýWhenÌýa local authority has evidence to support a caseÌýwhere there has been a rental biddingÌýbreach,Ìýthey must give theÌýperson who has committed the breachÌýnotice that theyÌýpropose toÌýissueÌýa civil penalty. That personÌýthen has 28 days to make written representations.ÌýÌýAfter this, the local authority can decideÌýwhether toÌýimpose a financial penalty and, if so, the amount. ÌýIf they decide toÌýimpose a financial penalty, they mustÌýgiveÌýa final notice to that person.

Gathering evidenceÌý

A local authority will need to decide what sort of evidence to gather to support or reject a case. Local authorities should compile any evidence provided by the alleged victim, drawing up and confirming a witness statement. Once a case of rental bidding takes shape, this should be put to the landlord or agent who can offer evidence in their defence.Ìý

Local authorities have powers to request information and enter business premises to support their investigations.Ìý

More information about investigatory powers and how to use them can be found in the investigatory powers guidance including a definition of cogent evidence.Ìý

When investigating reports of rental bidding, local authorities could ask tenants to provide:ÌýÌý

• evidence of the original published advertised priceÌý

• any records or evidence of the landlord or their agent asking for, encouraging or accepting a higher amount than the advertised price, such as text messages, voicemails, or emailsÌýÌý

• if appropriate, a copy of the tenancy agreement which shows the agreed rent (if the tenancy has since been entered into)

When investigating reports of rental bidding, local authorities should complete interviews and confirm witness statements from tenants, agents and landlords. They should also invite landlords or anyone acting on their behalf to provide all relevant documentation which supports the validity of their decision or actions. This may include:Ìý

• evidence of the original published advertised priceÌý

• a copy of the tenancy agreementÌýÌý

Other routes tenants may takeÌý

If the complaint relates to a letting agent, the tenant can also seek a remedy through the Ìý

You should advise the tenant where taking an alternative route would be appropriate in securing redress.Ìý

Examples that are breachesÌýÌý

WhatsApp groupÌýÌý

A landlord publishes an advert for a property to let for a price of £1,110 per calendar month. After receiving multiple enquiries, they decide to host an open viewing for the property. Following the viewing, the landlord sets up a WhatsApp group for those who attended the viewing. The landlord invites all prospective tenants to make bids for the property, starting at the advertised price of £1,110 per calendar month. A prospective tenant reports this to the local authority as rental bidding.Ìý

The local authority agrees that rental bidding has taken place because the landlord is inviting prospective tenants to make bids for the property above the advertised price. Even if no bids were made, the landlord is still in breach of the rental bidding measures because they have clearly invited tenants to bid above the advertised price.ÌýÌý

Best and final offerÌýÌý

A person sees a written advertisement for a property which includes a price of £950 per calendar month. When viewing the property, they find that other prospective tenants have been invited to view it at the same time. When they leave, the landlord says they will be asking applicants to include their ‘best and final’ offers in their application due to the high interest and advises them that they will be considering offers above the advertised price.ÌýÌý

The local authority agrees that rental bidding has taken place because the landlord has encouraged prospective tenants to bid above the advertised price by referring to the interest in the property and informing prospective tenants that they would be considering offers above the advertised price.Ìý

Asking a tenant for a higher offerÌý

A potential tenant submits an application to rent a property that was advertised as £950 per calendar month. After submitting their application, the landlord calls to tell them that they have already received a higher offer of £1,000 a month from another person. The landlord explains that they would prefer to let the property to the potential tenant, if they are willing to pay £975 per calendar month for the property.ÌýÌýÌý

The local authority agrees that rental bidding has taken place because the landlord has invited the prospective tenant to increase their offer above the advertised rent. It is irrelevant whether they agree to pay the higher amount of £975, or that this amount is lower than the offer made by the other person.

Landlord accepts an offer from a tenantÌýÌý

A landlord advertises a property at £1,050 per calendar month. They received multiple enquiries for the property. After one viewing, a person contacts the landlord to say that they would like to pay £1,200 per calendar month for the property. The landlord did not invite or encourage the tenant to make an offer. They accept the higher offer and the tenancy is agreed based on the higher price.ÌýÌý

The local authority agrees that rental bidding has taken place because the landlord has accepted a higher offer than the original advertised rent.ÌýÌýÌý

Examples that are not breachesÌýÌý

A higher offer is made but the landlord does not acceptÌý

A person sees an advert for a property which includes a price of £950 per calendar month. When viewing the property they find that other prospective tenants have been invited to view it at the same time. After the viewing, the tenant contacts the landlord and explains they like the property so much that they would be willing to offer an increased rent of £1,050 per calendar month. The landlord declines the offer and advises the tenant that they will be choosing a tenant based on the standard pre-tenancy checks.ÌýÌýÌý

The local authority decides that rental bidding has not taken place. Although the tenant has offered more, the landlord refused the offer.Ìý

Receiving a lower offerÌý

A landlord advertises a property with a price of £1,300 per calendar month. After some time, someone contacts them and offers £1,000 per calendar month, which the landlord accepts.ÌýÌýÌý

The local authority decides that rental bidding has not taken place because the offer was below the original advertised price.ÌýÌýÌý

Furnished/unfurnishedÌý

A landlord advertises a property as unfurnished with a price of £700 per calendar month. They also advertise the same property as furnished with a higher price of £750 per calendar month. The landlord receives a number of applications in response to both adverts. The landlord lets to a person who has agreed to the tenancy on the basis that the property is furnished, paying £750 per calendar month.Ìý

The local authority decides that rental bidding has not taken place as there is a difference between the two offerings.Ìý

Examples that are repeated breachesÌýÌý

Repeat breach – failing to include a published priceÌý

A landlord advertises a property for rent but does not include the rent in the written advert. The local authority investigates and issues a civil penalty.Ìý3 years later, the same landlord advertises another property without including the rent in the written advert.ÌýThe local authority decides that this is a repeat breach of the same type. A civil penalty of up to £7,000 can be issued for the second breach, and an additional penalty of up to £7,000 can be issued due to it being a repeat breach.Ìý

Repeat breach – encouraging a higher offerÌý

A landlord advertises a property for £1,200 per calendar month. During the viewing, they tell prospective tenants that they are open to offers above the advertised price. One tenant offers £1,300 per calendar month, which the landlord accepts. The local authority investigates and issues a civil penalty.Ìý4 years later, the same landlord advertises a different property for £950 per calendar month and again tells viewers that they will consider higher offers.Ìý

The local authority decides that this is a repeat breach of the same type. A civil penalty of up to £7,000 can be issued for the second breach, and an additional penalty of up to £7,000 can be issued due to it being a repeat breach.Ìý

Examples that are not repeated breachesÌýÌý

Not a repeat breach – different types of breachesÌý

A landlord is issued with a civil penalty for failing to include a published price in a written advert.ÌýTwo years later, the same landlord advertises a property with a listed price but encourages prospective tenants to offer more than the advertised rent.Ìý

The local authority decides that these are separate types of breaches. A civil penalty can be issued for each breach, but the second breach is not considered a repeat breach.Ìý

Multiple tenants encouraged to offer more on the same propertyÌý

ÌýA landlord advertises a property for £1,000 per calendar month. During the viewing process, several prospective tenants report that the landlord encouraged them to offer more than the advertised price. One tenant offers £1,100 per calendar month and is accepted.Ìý

The local authority investigates and issues a civil penalty for rental bidding.ÌýAs part of the investigation, the local authority considers whether the multiple reports from different tenants could amount to a repeat breach.Ìý

The local authority decides that this is a single breach event, as all instances occurred during the same marketing period for the same property.ÌýA repeat breach would only apply if the landlord committed the same type of breach again — for example, encouraging higher offers on a different property or during a future letting of the same property — within 5 years of the first penalty.