A prominent figure in the lettings industry is warning that any proposed ban on so-called bidding wars will end up with pushing rents even higher.
A ban on the bidding wars is set to be part of the Labour government’s Renters Rights Bill, announced in last month’s Queens Speech and set to be launched in the autumn.
The chief executive of the Tenancy Deposit Service, Steve Harriott, says any such ban will mean landlords and agents will initially market properties at a higher figure, knowing they are not in a position to accept rival bids above the asking price. If they don’t succeed in finding tenants they may reduce the asking rent, but the initial marketing is likely to be at a higher figure, he warns.
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No offence, but what does the chief executive of TDS actually know about letting property. The bidding war proposal will make zero difference to the market. This is the one proposal that is a good policy.
Personally, we try to discourage any form of Dutch auction when it comes to rent, where it our remit to secure what we believe to be the most appropriate tenant where our landlords agree with this attitude. However, how on earth can you stop an individual tenant from proposing a level of rent in excess of the asking price, where they do this having lost out on multiple properties that they wished to pursue. I find it quite distasteful to literally exploit people, but the power demand outstripping supply is not something that agents can control nor the government.
Did they not learn that when they banned tenant fees, the rents pretty much instantly went up by at least 10% where instead of the tenant paying let say £400 as a one off fee, they are now paying an inflated rent on an ongoing basis. Why the government didn't cap the tenant fees is beyond, fairer and certainly more financially beneficial to the tenants.
If you influence the Ying a change will occur with the Yang!
Not happened in over twenty years so it will not increase my rents.
Total scare mongering. Title should read ‘ proposed bidding war ban could make some agents try their luck and higher advertising rents that will probably get reduced when they realise everyone can see straight through their rotten game’ .
Completly agree. When a customer approaches, private or business, it is unacceptable to raise the asking price but very ok to reduce it.
Total non story, this is the same nonsense hype that we hear about gazumping. Any one in agency knows that these bidding wars and gazumps in reality rarely happen.
It would be nice if the government could stop the "Cartels" that are the petrol giants, where there is no current justification for the cost of a litre that is presently charged. But this would of course would impact on the public purse! Funny how it dropped to 99p when everyone was locked down.
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