Has ‘key money’ returned?

Hello, The new ban on open bidding for rental properties, and the shortage of available properties, seems to have brought back the old practise of agents or landlords being paid ‘key money’ (cash bribes).

This used to be a common practise back in the 60s and 70s.

If there are many people all offering asking price for a property, isn’t it inevitable that some will also offer an untraceable and un-taxable cash payment to get ahead of the crowd?

And if a landlord relies on an agent to advise them on which candidate to select, isn’t that a perfect situation for bribes to swing the decision.

Am I the only person who sees that this new law effectively encourages criminality?

An agent – or a landlord – can accept a cash bribe from as many candidates as they want – and then deny they’ve done so. It’s only one person’s word against another.

Making bidding above an asking price illegal won’t stop people from bidding more – it just drives that underground. As long as the demand outstrips supply in a market, people who can pay more will always do so.

Has anyone on the Property118 forum been offered a bribe? Or heard of bribes being offered? And Is anyone prepared to admit it?

Thank you,

Pippa