Friday, 11 September 2026. For many London renters, one of the most frustrating parts of finding a home was discovering that the advertised rent was not necessarily the rent they would have to pay.
A property might be advertised at £1,900 per month, attract several interested applicants and suddenly become a competition. Prospective tenants could feel pressure to offer £1,950, £2,000 or more simply to remain in consideration.
Since 1 May 2026, the rules in England have changed.
What is rental bidding?
Rental bidding occurs when prospective tenants compete by offering rent above the advertised asking price.
Under the Renters' Rights reforms, a landlord or letting agent advertising a property must state a specific asking rent. They cannot ask, encourage or accept an offer above that advertised figure.
This means a property advertised at £2,000 per month should not turn into an informal auction simply because several people want it.
The rule does not mean landlords must accept the first applicant. Referencing and legitimate tenant-selection processes still matter. What has changed is the ability to use higher rent offers to create competition above the advertised price.
Can I offer extra rent to secure the property?
This is where renters should be careful.
Offering more money voluntarily does not provide a way around the rule. Government guidance states that landlords cannot ask for, encourage or accept a payment above the advertised rent.
Tenants therefore should not feel that they need to quietly offer an extra £100 per month simply because several other people attended the viewing.
A competitive property can still receive many applications. Competition simply needs to be handled without turning the advertised rent into a starting bid.
What about paying six or twelve months upfront?
This area has also changed.
For assured periodic tenancies, a landlord or agent must not ask for, encourage or accept rent before the tenancy agreement has been signed. After signing, the new rules restrict the amount that can be required in advance; for a monthly tenancy, government tenant guidance states that a tenant can generally be asked for a maximum of one month's rent in advance before the tenancy begins.
This is particularly significant for international renters and people without a conventional UK credit or employment history, who historically could be asked to pay substantial amounts upfront.
It does not remove referencing. It changes the financial demands that can be made around the start of the tenancy.
Deposits are a separate issue
Rent in advance should not be confused with a tenancy deposit or holding deposit.
Government guidance states that a holding deposit can be up to one week's rent. For the tenancy or security deposit, the usual maximum is five weeks' rent where annual rent is below £50,000 and six weeks where annual rent is £50,000 or more.
Where the tenancy-deposit protection requirements apply, the deposit must then be protected through an approved scheme.
Understanding these different payments makes it much easier to identify what you are actually being asked to pay when securing a property.
What should renters do when applying?
Read the advertisement carefully and keep a copy of it. Confirm the advertised monthly rent and ask for clarity about the holding deposit, tenancy deposit and first rent payment before transferring money.
You should also understand what happens if your application does not proceed.
London's rental market can move quickly, but speed should not mean transferring substantial amounts of money without understanding what the payment is for.
The purpose of the new rules is not to remove competition for popular homes. It is to make the price of that home clearer from the beginning.
DISCLAIMER- THIS PHOTO HAS BEEN TAKEN FROM PINTEREST ( KONDO KO, PROPERTY MANAGEMENT)