Demand for Rental Properties creates Bidding Wars

The only thing worse than being gazumped on a home you want to buy is being gazumped on a home you need to rent. Bidding wars may be commonplace in Britain’s frenzied sales market, but they are becoming the norm in lettings too.

The post-pandemic landscape has changed. Landlords are selling to make the most of record house prices or they have pivoted to letting their properties on a short-term basis on platforms such as Airbnb to escape taxes, regulations and make money out of the staycation boom. The result? Fewer properties available to let long-term and tenants are having to outbid each other on the monthly rent to find a place to live.

Social media is full of tales of rental heartbreak. Tracey Pearce(@elementalturtle) wrote on Twitter how she lost out on an £1,800-a-month house for which she had bid £2,000 a month after it went to a tenant who made an even higher offer. She wrote: “We were facing homelessness with four kids as our current landlord had sold our rental but the letting agent thought it was a game and got angry when I cried.”

Another Tweeter, B (@BeeSansMerci), wrote: “We put in an application on a house, landlord picked us, we were on our way to estate agents to sign and put down the deposit and in that time one of the rejected applicants offered an extra £50 a month and the estate agent gave it to them instead. Cried for days.”

There are stories of letting agents telling tenants not to bother applying unless their salary is 40 times the rent. Tenants say that letting agents have even led group viewings that ended with a bidding war in the garden.

Imogen Tew, 25, has rented in London for seven years, but she was first asked to make an offer for rent in June 2020 after the first national lockdown when she was looking to move in with her boyfriend. Tew was outbid on one property in Blackheath, southeast London, and another went to a tenant who could move in quickly, so she realised that she had to up her game.