A big council in London has called on letting agents to stop pitting tenants against one other in “exploitative” bidding wars within the borough.

Southwark official are to contact letting agents in the area who haven’t agreed to end the practice, reports the BBC. The area has some of the highest rents in England, where the average monthly private rent was £2,298 in October compared with £2,172 across London, according to the ONS.

A motion calling for an immediate ban to the tactic, brought by Labour councillor Sam Foster, received cross-party support at a recent council meeting within its HQ (pictured)

“Exploitative bidding wars are worsening London’s housing crisis and it’s time for them to be banned,” says Foster. “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.”

Acorn Southwark says the motion will strengthen protections for local renters until the government’s Renters’ Rights Bill comes into force which is set to ban bidding wars.

More work

A spokesperson from the group adds: “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.”

Meera Chindooroy (pictured), the NRLA’s deputy director for campaigns, public affairs & policy, says letting agents and landlords should be setting and advertising rents based fairly on local market conditions.

“The forthcoming Renters’ Rights Bill includes a ban on bidding wars,” she tells LandlordZONE. “In the meantime, Southwark Council is within its rights to encourage agents to stop them on a voluntary basis.

“That said, none of this will address the intense competition for properties as a result of 21 people currently chasing every available home to rent. Only through boosting supply will tenants be afforded the choices they need and deserve about where to live.”