Many landlords and lettings agents are prepared to use a shortage of rental properties to their advantage, viewers of the BBC’s Morning Live show were told.

In a segment on bidding wars, the programme quoted a couple who had arranged a viewing on a flat in South London listed at £1,700 a month, who were then encouraged by a letting agent to offer £250 more than the asking price.

Another tenant said a prospective flat had gone for £2,500 instead of £1,800 with the winning tenant signing a two-and-a-half-year contract.

While the Renters’ Rights Bill aims to put an end to the practice next year, Acorn’s north London area organiser Fredi Gentz (main image) said bidding wars pitted tenants against tenants.

Distrust

“It creates distrust between tenants and the landlord and frankly means that rents are spiralling out of control, out of sight. We wouldn’t ask families to bid on the food they buy in the shop to survive,” he said.

Although the group was proud of the legislation after decades of campaigning, Gentz added: “What it doesn’t address very well is affordability so that’s definitely something that’s going to need to be campaigned on, whether that’s rent controls or increasing supply.”

The NRLA’s deputy director of campaigns, Meera Chindooroy (pictured), told the programme that bidding wars were a result of other issues in the sector. “It’s a symptom of the lack of supply and the high levels of demand - the government needs to address this,” she said.

“This shouldn’t be a practice and it’s important that agents make a realistic assessment of the correct market rent for that property. The vast majority of landlords and agents will want to comply with the rules, but a key part is that enforcement is there to ensure legislation is complied with.”

Picture credit: BBC