Tenant bidding wars have become increasingly common as the number of homes available to rent has failed to keep pace with demand. This shortage of rental properties has led to landlords receiving multiple applications for every vacancy, and in some cases, tenants are even willing to pay above the asking price in order to secure a lease.
While this may be good news for landlords, it can be very stressful for tenants who find themselves in a competitive bidding situation. According to the BBC, prospective tenants are not only offering more cash but also offering CVs for their children and photos of their well-behaved dogs.
Landlords are being hit with a double whammy and it’s making property ownership less profitable. Changes in taxes have made letting properties more expensive, while legislation related to maintenance and energy pushes costs even higher.
The Department for Levelling-Up has stated that “good landlords” had nothing to fear, and that the reforms were designed to “give tenants greater security”.