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Categories: prs | Renters Rights Bill

Labour have provided more detailed information about the date for when they will officially roll out their flagship PRS (private rental sector) reforms, and how they plan to put a stop to property ‘bidding wars’.

The government’s self-imposed deadline to begin implementing the Renters’ Rights Act policies is 1st May 2026.

Timetable for implementation

While Labour were keen to get the Renters’ Rights Bill through parliament, once it received Royal Assent, they were evasive when asked about when its policies would be enacted.

After a few weeks of preparation, the May deadline was announced. Landlords and renters can expect several key PRS reforms to come into immediate effect, namely:

  • Ban of ‘bidding war’ strategies used by landlords and agents.
  • Ban of Section 21 ‘no-fault’ evictions.
  • Banning multiple rent increases within one year.
  • Removal of landlords’ ability to ask for one month of rent in advance.
  • Tightening of laws against tenant discrimination.

We have extensively covered the implications of the Section 21 ban in a previous article about the official Renters’ Rights Act guide. Read through that piece for more information on landlords’ remaining alternatives to no-fault evictions.

The war on property bidding wars

Labour’s plan to prevent property bidding wars has been discussed less often than Section 21, but it will be crucial for landlords and letting agents to understand how the rules around this are changing.

In the context of the PRS, a bidding war is a situation in which two or more prospective tenants attempt to outbid each other in order to gain a tenancy on a property. This can escalate into them offering to pay more than the advertised rent, thereby driving up the price for other potential tenants.

These scenarios can be beneficial for landlords. They can indicate the true market value of their properties, and potentially lead to greater rental yields. In essence, it is ‘supply and demand’ in action.

In many cases, the prospective tenants volunteer to bid more on the rent for a better chance of being accepted by the landlord. However, some landlords and letting agents actively entice would-be renters to do this, a practice Labour want to crack down on. 

Enforcement

From 1st May, landlords will no longer be able to encourage bidding wars among prospective renters, and will no longer be able to accept any overpayments for the advertised rent. 

The new laws will prevent landlords and agents from offering a property to somebody willing to pay more than the marketed price. Local authorities will be responsible for enforcing this.

Although landlords and agents will still be able to place generic ‘To Let’ signs outside properties, they must be very clear and transparent about the rent when marketing a property online. 

Furthermore, any information about rent prices must be consistent across all online and offline platforms. This includes: social media posts, messaging apps, property portals (e.g. Zoopla, Rightmove), emails, and letters (both handwritten and printed). 

Even in scenarios where a tenant voluntarily offers to pay more, the landlord cannot accept it. Otherwise, this would open the door to loopholes that could allow bidding wars to continue in a subtler fashion.

The civil penalty for a landlord found to be renting a property for more than the initial price is up to £7,000. Repeat offenders within a five-year period could subsequently be liable for a £14,000 fine.