A South London borough with some of the highest rents in England has called on estate agents to stop pitting tenants against each other in bidding wars for rental properties.
Southwark Council has pledged to write to letting agents in the area that have not agreed to end the ‘exploitative’ practice, which sees prospective renters encouraged to offer more than the advertised price of a property in order to secure a home.
The average monthly private rent in Southwark was £2,298 in October 2024, compared to £2,172 across London and £1,307 across Great Britain.
In April 2024, it was reported that one in five tenants had lost out on a rental property in the last two years due to a so-called ‘bidding war’.
A motion calling for an immediate ban to the tactic, brought by Labour councillor Sam Foster, received cross party support from the Labour-run council and Liberal Democrat opposition at a meeting on Wednesday.
ACORN Southwark, a community union which has campaigned for estate agents in the borough to end the practice, said the motion would strengthen protections for local renters until the government’s Renters’ Rights Bill comes into force.
The bill, which is currently making its way through parliament, is set to ban so-called ‘bidding wars’ but campaigners such as ACORN Southwark have argued that the ending of the practice can’t come soon enough amid the cost of living crisis.
A spokesperson from the group added: “More work needs to be done to address renting affordability in Southwark. 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.”
Cllr Sam Foster, member for Faraday ward, said: “Exploitative bidding wars are worsening London’s housing crisis and it’s time for them to be banned.
“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.”
