London council calls to end ‘exploitative’ rental bidding wars
Southwark council have pledged to write to letting agencies in the borough that are pitting tenants against one another when trying to secure a home.
Bidding wars that have unethically been introduced in London encourage renters to offer more than the advertised price of a property before they’re allowed to move in. The concept, along with high interest rates and the cost-of-living, is one of the reasons rents have hit record-breaking levels in the capital city.
This is particularly true for Southwark, which has some of the highest rents in England. According to figures from the Office for National Statistics (ONS) the average monthly private rent in Southwark was £2,298 in October 2024.
Though the average price varies depending on the size of a property. One bedroom homes in the borough calculated at £1,725, while the average price for four or more rooms was £3,360.
Against this backdrop, councillor Sam Foster is calling for a motion to ban estate agents from pitting tenants against each other. The decision received cross-party support when it was introduced at a meeting on Wednesday last week.
‘Exploitative bidding wars are worsening London’s housing crisis and it’s time for them to be banned,’ Cllr Foster said. ‘The broken housing market has been stacked against renters for a long time and I’m proud that Southwark is standing up for private renters and working with renters’ rights groups like ACORN to do so.’
Speaking to NewStart, a spokesperson for ACORN – a campaign group in London that are looking to end rental bidding wars, said: ‘We’re pleased Southwark council are supporting our campaign to ban bidding wars.
‘Letting agents in London have been taking advantage of the housing crisis by encouraging people to bid above asking prices in an attempt to push up prices. It forces renters into financial hardship and prices people out of the city and is price gouging plane and simple!
‘Bidding wars are being banned in the upcoming Renters Rights Bill for this reason, but we anticipate lettings agents will attempt to push up prices as much as they can before the law comes in place. We’ll be working with Southwark council to put pressure on lettings agents to stop this unethical sales practice and encourage Southwark resident to join our union to fight for more affordable housing.’
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