The Rental Bidding Ban: What Landlords and Agents Cannot Do Under the Renters' Rights Act

From 1 May 2026, RRA s.56 bans rental bidding. Adverts must state a specific rent. Landlords cannot accept above-advertised bids — even unsolicited ones. The penalty is up to £7,000.

In a tight rental market, some landlords and agents have historically invited prospective tenants to outbid each other. From 1 May 2026, Section 56 of the Renters' Rights Act 2025 makes that illegal. The prohibition is wider than most landlords assume — it covers not just asking for higher bids, but accepting them.

What the law requires: a specific rent in every written advertisement

Section 56(2) requires that any written advertisement or written offer of a proposed letting must state the rent as a specific amount. A price range is not sufficient. "From £1,200 per month" or "offers in the region of £1,500" both breach this requirement.

The requirement applies to:

Online listings (Rightmove, Zoopla, Gumtree, Facebook Marketplace)
Printed advertisements
Written offers made directly to applicants
Any other written marketing material

Exception: "To Let" boards. A sign at the property stating it is to let is not a "written advertisement" for these purposes and does not need to state the rent.

What the ban prohibits

Once a property is advertised in writing, the landlord or agent must not:

1. Invite or encourage anyone to offer above the stated rent. This includes telling applicants there are other bids, publishing a price range and inviting bids, or any communication calculated to lead an applicant to believe they should offer more.

2. Accept an offer to pay above the stated rent. This is the part many landlords underestimate. A tenant who — without any invitation — volunteers to pay more cannot simply be accepted at that higher figure. The balance of probabilities standard under s.57 means that accepting a higher offer is an offence regardless of whether the landlord encouraged it.

The "stated rent" is the rent in any written advertisement — whether by the landlord or their agent. If the agent advertises at £1,200 and the landlord accepts a bid of £1,400, both the acceptance and the original arrangement may be implicated.

The pre-tenancy rent payment ban (RRA s.9)

Section 9 of the RRA adds a related prohibition: landlords and agents cannot request or accept any payment of rent until both parties have signed the tenancy agreement. Taking the first month's rent alongside the deposit at signing is fine — taking rent as a condition of holding the property, before signing, is not. Pre-tenancy rent payments are now a prohibited payment under the Tenant Fees Act 2019.

Penalties

Section 57 gives local housing authorities the power to impose a financial penalty of up to £7,000 per breach, on the balance of probabilities. For a second offence involving the same prohibition within 5 years, an additional penalty of up to £7,000 can be imposed.

Tenants can report rental bidding to their local council, providing evidence of the advertised rent and any communications that invited or encouraged higher offers.

What this means for initial pricing

The legislation does not introduce rent controls. In areas of high demand, landlords will set higher initial asking rents — but once that rent is advertised in writing, it is fixed. Pricing decisions at the marketing stage become more consequential.

Letting agents and liability

The prohibition applies to both the prospective landlord and anyone acting on their behalf. A letting agent who invites rental bidding exposes both itself and the landlord to penalty risk. Ensure your agent's marketing instructions are consistent with the ban.

Advertising compliantly

State one specific monthly figure in every written listing. Remove any language that might be interpreted as inviting competitive offers. Brief your letting agent before instructing them. If a prospective tenant volunteers to pay more, decline in writing and reiterate the advertised rent.

mypy's compliance hub includes a pre-listing checklist that confirms a specific rent has been set before a property goes live. Free for up to 2 properties.

Frequently asked questions

A tenant offered me £200 more per month unprompted. Can I accept?

No. Accepting an above-stated offer is prohibited under s.56(3)(b) regardless of whether you encouraged it. To let the property at the higher figure, withdraw the advertisement, reset the stated rent, and re-advertise.

Does the ban apply to renewals of existing tenancies?

Section 56 applies to a "proposed letting" — a new tenancy. Rent discussions with an existing tenant about a continuing tenancy are governed by the Section 13 rent increase rules. The bidding ban applies at the marketing and letting stage.

My agent listed the property with a price range. What should I do?

Ask the agent to withdraw the listing and re-advertise with a specific figure. The current advertisement is non-compliant. If applications were processed at above the bottom-of-range figure, take advice on whether a higher offer has already been accepted.

Is "offers invited" language still permitted?

No. "Offers invited" in a written rental advertisement invites offers that could exceed the stated rent — or, if no specific rent is stated, fails the requirement to state a specific amount.

Can I advertise furnished and unfurnished options at different prices?

Advertising one property at two different specific figures for two distinct configurations is likely to be treated as two separate listings, each compliant as long as each states a specific amount and neither invites bidding.

Sources

This article is general guidance, not legal advice. Verify your obligations against current GOV.UK guidance or seek professional advice for your circumstances. Last reviewed 2026-07-06.