As the rental market heats up in popular neighborhoods, many renters are finding themselves caught in intense bidding wars. Housing advocates have welcomed new proposed laws aimed at abolishing this practice in England but emphasize that more comprehensive strategies are needed to tackle the soaring rental prices.
Jason Phillips, who lived in his apartment in Crouch End, North London, for ten years, faced a tough situation when his landlady decided to sell. He spent over a year searching for a new rental in the same area, going to around 40 property viewings. Despite earning a stable income as a business analyst, he repeatedly lost out to competing applicants. In one particularly frustrating instance, a two-bedroom apartment listed at £1,800 per month quickly went for £2,500 after another prospective tenant offered £700 above the asking price.
“It’s frustrating,” Jason shared. “It became not just unaffordable for me, but if I had known that was the typical price, I probably wouldn’t have even considered viewing it at all.”
With a dozen potential tenants vying for many properties, Jason noted that several estate agents suggested he offer more than the listed price to improve his chances. Ultimately, at 60 years old, he decided to move to Stevenage, Hertfordshire, where he found it easier to secure housing within his budget, which also brought him closer to work.
“I had built strong relationships with my neighbors and made a lot of friends there,” he recalled. “I miss Crouch End dearly and would love to come back.”
In response to the ongoing housing crisis, the government has unveiled plans to eliminate bidding wars as part of a far-reaching Renters’ Rights Bill announced this Wednesday. If this legislation passes, it will require landlords and letting agents to visibly display asking rents for their properties and will prohibit them from soliciting or accepting any bids above that amount.
This proposed approach is more stringent than previous Labour proposals when they were in opposition, which suggested limiting landlords and agents from encouraging higher bids but would still have allowed tenants to make offers above asking prices.
Conor O’Shea from the campaign group Generation Rent expressed approval that the government has taken cues from countries like Australia, where measures to address bidding wars have already been implemented, opting for a “total ban.” He emphasized that allowing “voluntary” bids could result in tenants feeling pressured to exceed the asking price, leading to potential exploitation.
