In high-demand markets, it is not unusual to have several applicants competing for the same property. Full viewings, strong interest and multiple offers have long shaped how lettings decisions are made.
From 1 May 2026, however, one key element changes. Price can no longer form part of that competition.
Under the Renters’ Rights Act, rental bidding will be banned. Landlords and agents must advertise a single asking rent and treat it as fixed. No upward negotiation, no “best and final offers” and no accepting more, even if it is offered voluntarily.
For landlords, this is more than a legal update. It is a change in how demand is handled. At Ellis and Co, we are working with landlords to ensure they remain compliant while continuing to secure the right tenants efficiently.
Related: New Possession Rules from May 2026: What Landlords Need to Know – An Ellis & Co Guide
High demand does not mean flexible pricing
When multiple applicants are involved, it is natural to assume that demand should influence price. That has often been the case in the past. Under the new rules, it cannot be.
Once a property is advertised, the landlord or agent must treat the advertised rent as the proposed rent for that letting. Rental bidding occurs if a landlord or agent invites, encourages or accepts an offer above that figure. This applies to all written communication, from listings to emails and text messages.
In practical terms, landlords and agents must not:
- Suggest that offering more will improve an application
- Refer to “best and final offers”
- Indicate that another applicant has offered a higher rent
- Publish another advert with a higher advertised price for the same letting
- Accept a higher offer than the one originally advertised
Even where an applicant offers more without being prompted, accepting that figure would still be a breach.
The shift is clear. Demand still matters, but it can no longer be used to increase rent.
The importance of getting the asking rent right the first time
Because pricing is fixed, the initial valuation becomes more important than ever.
In strong markets, underpricing was sometimes used to generate interest and drive bids upwards. That approach is no longer viable. If the rent is set too low, it must remain at that level for that marketing period.
A well-evidenced asking rent should reflect comparable properties, location, condition and current demand. The aim is to position the property correctly from the outset so that it attracts the right level of interest without the need for adjustment.
Consistency is equally important. The rent shown on portals should match what is discussed at viewings and confirmed in follow-up communication. Mixed messaging can create confusion and increase the risk of complaints.
This is where a more structured approach becomes essential. Pricing is no longer reactive. It must be right from the start.
How to handle multiple applicants the right way
With price removed from the equation, the focus shifts to process.
Managing multiple applicants now requires a consistent and transparent approach. Decisions should be based on clear criteria such as affordability, references, employment and overall suitability for the property.
It is entirely acceptable to communicate that a property has a strong interest or multiple applicants. What matters is how that message is framed. Demand can be acknowledged, but it must not be linked to price or used to encourage higher offers.
Setting clear expectations helps. Applicants should understand how decisions will be made, what information is required and when outcomes will be confirmed. This improves transparency and protects landlords if decisions are later questioned.
In competitive markets, professionalism becomes an advantage.
Understanding the risk of getting it wrong
Local councils are responsible for enforcing the rental bidding rules and can investigate complaints where concerns are raised.
A first breach can lead to a civil penalty of up to £7,000. If the same type of breach occurs again within five years, councils can impose a further penalty for the breach and an additional penalty because it is treated as a repeat breach.
Decisions are made on the balance of probabilities, meaning councils only need to be satisfied that a breach is more likely than not to have occurred. Emails, messages and screenshots from applicants may be enough to support a case.
For landlords managing multiple applicants, this reinforces the importance of consistency. Clear communication and a structured process are not just good practice. They are essential.
A smarter approach to lettings
The ban on rental bidding is designed to create a fairer and more transparent lettings environment. For landlords, it encourages a more disciplined and professional approach.
The fundamentals remain unchanged. A well-presented property, priced correctly, will attract strong interest. What changes is how that interest is handled.
Success now depends on setting the right asking rent from the outset, maintaining consistency throughout the process and selecting tenants based on suitability rather than price.
For many landlords, this is not a restriction. It is a more controlled, consistent way of letting property.
If you would like support reviewing your pricing strategy or adapting your process for the new rules, your local Ellis and Co team will be happy to help.
