Assured periodic tenancies: a guide for landlords
Rental bidding
You or your letting agent cannot ask for, encourage or accept an offer that is higher than the advertised rent.
If someone offers to pay more than the advertised rent for a property, this is known as ‘rental bidding’.
You may be fined up to £7,000 for your first offence.
When you advertise a property
When you advertise or offer a property in writing, you must say how much the rent is. It must be a specific amount. A price range is not allowed.
A written advert can be:
- an online property advert
- a printed advert
- a social media post
- any digital communication, for example, emails, text messages or direct messages
A ‘to let’ sign outside a property is not a written advert.
After you’ve advertised a property
After you or your letting agent have advertised the rent for your property, you cannot:
- ask for or accept offers above the advertised rent
- publish a price range for the property and ask tenants to bid within that range, or higher
- encourage someone to offer more than the advertised rent (for example, by telling them you have received other offers)
- act in any way that leads a person to believe they need to offer more than the advertised rent
You may be reported to the local council if you do any of these things, even if the tenancy agreement has been signed.
If someone reports you for rental bidding
The council may ask for:
- evidence of the original advertised rent
- the tenancy agreement
- a statement
If the council agrees that rental bidding has happened, they may fine you up to £7,000 for your first offence.
If you’re reported again
You could be fined for a ‘repeated breach’ if you commit the same offence within 5 years. If you are fined for a repeated breach, you’ll have to pay:
- up to £7,000 for the breach on its own
- up to £7,000 if you repeat the same type of breach within 5 years
Example
You advertise a property but do not include the price of rent in the written advert. Someone reports this and you’re fined up to £7,000.
Two years later you advertise another property without including the price of rent. Someone reports this and you are fined up to £7,000 for the breach, as well as up to another £7,000 for the ‘repeated breach’.
You could pay a total of up to £21,000 for the 2 offences.
It will not be a repeated breach if you are reported for different things.
Example
You advertise a property but do not include the rent in the written advert. Someone reports this and you’re fined up to £7,000.
One year later, you advertise another property and include the rent in the written advert, but you then accept an offer of more than the amount advertised. Someone reports this and you’re fined up to another £7,000.
You could pay a total of up to £14,000 for the 2 offences.