Call for ban on rental property 'bidding wars'

In October, the average monthly private rent in Southwark was £2,298

A council in south London has called for an immediate ban on "bidding wars" over rental properties in the area.

Southwark Council, which has some of the highest rents in England, has called on estate agents to stop pitting tenants against one other.

It has pledged to write to letting agents in the area that have not agreed to end the "exploitative" practice.

It involves prospective renters being encouraged to offer more than the advertised price of a property in order to secure a home.

'Predatory letting agents'

The average monthly private rent in Southwark was £2,298 in October 2024, compared to £2,172 across London and £1,307 across Great Britain, according to the Office for National Statistics (ONS).

The average price varies depending on the size of the home, with average rents for one-bedroom properties in the borough calculated at £1,725, while the average rental price for four or more bedrooms was £3,360.

A motion calling for an immediate ban to the tactic, brought by Labour councillor Sam Foster, received cross-party support from the Labour-run council and Liberal Democrat opposition at a meeting on Wednesday.

Foster said: “Exploitative bidding wars are worsening London’s housing crisis and it’s time for them to be banned."

He added: "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.”

Members of ACORN Southwark with Labour councillors at Southwark Council

ACORN Southwark, a community union which has campaigned for estate agents in the borough to end the practice, said the motion would strengthen protections for local renters until the government’s Renters’ Rights Bill comes into force.

The Bill, which is currently making its way through Parliament, is set to ban bidding wars, with campaigners including ACORN Southwark saying that an end to the practice cannot come soon enough amid the cost-of-living crisis.

A spokesperson from the group said: “More work needs to be done to address renting affordability in Southwark.

"Until the Renters’ Rights Bill is passed, predatory letting agents will continue to increase rents as much as possible, pricing more people out of their homes.”