Rental bidding above advertised price banned in England

Private tenants in England gained new rights on 1 May 2026, when rules took effect that require landlords and letting agents to include the rent in the property advert and prevent them from asking for or accepting more than the advertised figure¹. Shelter England states plainly that "rental bidding is now illegal"². The change was intended to ban the practice of rental bidding above the asking price¹.

The rules also cap upfront payments. From 1 May 2026, landlords and agents can only ask for up to one month's rent in advance, and that money can only be used to cover the first rent payment². It cannot be taken before a tenancy agreement is signed². Holding deposits remain capped at one week's rent in England and Wales, and are banned in Scotland¹. Shelter gives the calculation as monthly rent x 12 ÷ 52².

Tenancy deposits are unchanged in their limits. In England, landlords can take up to five weeks' worth of rent, or six weeks' if the rent is over £50,000 a year¹. In Scotland the limit is no more than two months' rent, while Wales and Northern Ireland have no formal cap, though tenants usually pay one month's rent¹. Deposits for assured tenancies must be protected in a government-approved scheme within 30 days of receipt¹, and returned within 10 days of both sides agreeing the amount¹.

The same date brought wider changes to tenancy agreements in England. Fixed terms of 12 or 24 months were previously the most common; agreements now typically have no end date, with tenants and landlords on assured periodic tenancies that roll on until notice is given¹. Tenants can end a tenancy with two months' notice from the day rent is due¹. No-fault evictions have been abolished in England, and landlords cannot evict a tenant during the first 12 months if they want to move into or sell the property, for which they must give at least four months' notice¹.

Why it matters for households

Around a fifth of UK households rent privately, and demand for rental homes can be high, as can the costs¹. For anyone searching in England from 1 May 2026, the advertised rent is the maximum that can be charged, and the most that can be requested upfront is one month's rent¹. Tenants who are asked for more can complain to their council's private renting team; the council can fine the landlord or agent, and where too much rent in advance has been paid it can also order the landlord to repay it². Most other tenancy fees, including referencing and credit check charges, are banned².

Which? reports that some letting agents have responded by inflating advertised prices to encourage a form of bidding below the higher asking price, so the advertised figure a tenant sees may not reflect the previous market level¹. Tenancy deposit limits, protection deadlines and the 10-day return rule are unchanged¹.

What happens next

No further commencement dates are given in these sources. Shelter's page was last updated on 1 May 2026², and Which?'s guide was published on 30 July 2026¹. The regulation and policy hub covers related rule changes.