Southwark Council advocates for immediate ban on rental property ‘bidding wars’

Southwark Council, a local authority in south London where some of England’s highest rental prices are recorded, has called for an immediate prohibition of “bidding wars” for rental properties within its area. The council has urged estate agents to cease encouraging competition among prospective tenants. It has committed to writing to letting agents in the area who do not agree to discontinue this “exploitative” practice, which involves potential renters being prompted to offer more than a property’s advertised price to secure accommodation. According to data from the Office for National Statistics (ONS), the average monthly private rent in Southwark was £2,298 in October 2024. This figure compares to an average of £2,172 across London and £1,307 throughout Great Britain. The average cost varies depending on the size of the home; for example, one-bedroom properties in the borough had an average rent of £1,725, while homes with four or more bedrooms averaged £3,360. A motion proposing an immediate ban on this tactic, introduced by Labour councillor Sam Foster, received cross-party support from the Labour-run council and the Liberal Democrat opposition during a meeting held on Wednesday. Councillor Foster stated: “Exploitative bidding wars are worsening London’s housing crisis and it’s time for them to be banned.” He further commented: “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.” ACORN Southwark, a community union that has campaigned for estate agents in the borough to end the practice, indicated that the approved motion would strengthen protections for local renters until the government’s Renters’ Rights Bill comes into force. This Bill, currently progressing through Parliament, is designed to outlaw bidding wars. Campaigners, including ACORN Southwark, emphasize that the termination of this practice is urgently required amidst the ongoing cost-of-living crisis. A spokesperson from the group commented: “More work needs to be done to address renting affordability in Southwark.” They added: “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.”