Over the past few years, many tenants will have become familiar with a highly competitive rental market where properties often received multiple offers. In many cases, tenants chose to view homes slightly below their maximum budget in order to remain competitive if a property attracted bids above the advertised rent.

From 1 May, new legislation will introduce changes to how rental properties are marketed and agreed.

Under the new rules, bidding above the advertised rent will no longer be permitted, and clauses that automatically increase rent during a tenancy will also be void. As a result, landlords will now typically market their properties at the rent they genuinely expect to achieve, rather than pricing lower to encourage multiple competing bids.

What this means for tenants

The key change is that the advertised rent will more closely reflect the landlord’s target price. In most cases, successful offers will therefore be at or very close to the asking rent, rather than above it as has often been the case in recent years.

However, this does not mean that landlords cannot consider more than one offer at a time. Where there is strong interest in a property, landlords may still review multiple offers before making a decision. The difference is simply that offers cannot exceed the advertised rent.

For this reason, it remains important for tenants to ensure that their offer is as strong and competitive as possible, even within these new rules.

How tenants can strengthen their offer

While rent remains an important factor, landlords will often consider the overall strength of an application. For example, tenants who can demonstrate long-term intentions to remain in the property, strong references, or stability in their circumstances may present a particularly attractive option to a landlord.

Although there is no longer a fixed-term structure in the same way moving forward, tenants who are planning to stay in a property for a longer period and can clearly communicate this in their offer may help strengthen their position when a landlord is considering multiple applicants.

Don’t rule out properties too quickly

Because properties will now generally be marketed at the landlord’s expected rent, tenants may notice that more listings appear closer to the top of their budget than they may have been used to seeing previously.

However, levels of interest can still vary depending on timing, demand and location. For this reason, tenants may wish to keep an open mind when viewing properties that appear slightly above their initial comfort level, as market conditions for each home can differ.

A more transparent process

Overall, these changes are intended to create a clearer and more transparent rental process, where tenants know the landlord’s expected rent from the outset and can make informed decisions when searching for their next home.

If you have any questions about how the new rules may affect your property search, our team at Greater London Properties will be happy to guide you through the process. We are Accountable, Ambitious, Approachable, and Authentic, ensuring 'Your Home, Your Story' is a positive one.