Labour’s plan to curb bidding wars under fire for loophole

as ever a completely pointless idea coming from Labour….

I wouldn’t entertain a bidding war however, I don’t see why it should bother the government. Higher rents mean they make more in tax.

Maybe we should argue that banning bidding wars takes funds away the NHS.

There is more than one type of auction. You can start low and move higher, or start high and move lower. (A Dutch auction) The Dutch auction may require a slightly higher void period though.

If bidding is disallowed, then most landlords will simply advertise for the maximum price they think they can get and be open to offers. If the demand is there, then they will get what they ask for if someone is willing to pay it.
Price caps usually have this perverse kind of effect. I remember a long time ago reading something about how In America at some point they temporarily placed a ceiling on the price of wheat or something similar. The author had bet on prices going up when the cap was lifted and contracted for supplies at the going rate, but the price actually came crashing down instead because of course everybody had been selling at the ceiling rather than the supply/demand equilibrium price. The person in question then had to sell off his business as it was hemorrhaging money.

Reply to the comment left by Reluctant Landlord at 26/06/2024 – 08:08Implemented in New Zealand where rents went up!
If a tenant wants to offer more to secure the property, that’s their choice. Same as buying a property. You cannot legislate against it.
Of course, a landlord doesn’t have to accept a higher offer! ?

Just unbelievable that once again a totally not thought through idea. These people are gonna be running our country soon. Very scary thought.

Reply to the comment left by NewYorkie at 26/06/2024 – 12:02
agree. Nothing to stop a LL making it clear to any person applying that they are one of many so it is going to take them time to pick the best candidate.

IF THE TENANT then offers more rent as a way of securing a tenancy and you accept so be it. You can’t legislate against offers being made as it has not been forced in any way.

Another unworkable idea from the prospective government of a woke nanny state, soon you will not be able to refuse to let to applicants in case you hurt their feelings.

If we sell we may subject to whatever rate of CGT will be imposed, we may also probably have to offer the property to existing tenants at a 50% discount based on value regardless if we have an existing mortgage, if we commit suicide or die of natural causes labour are talking about imposing CGT on our heirs followed by inheritance tax at 40% after allowances have been removed.
If property is registered to a close company they are talking about removing the IHT exemption.

I can envisage never seeing another government except Labour in my Life time which basically means all I have worked for to provide for my family will be taken from us to pay for those who did not and wasted on wokery and the like.

What is the solution, join a Landlord Terrorist organisation if there is one, as Landlords associations seem to have forgotten who they represent?

I see Labour’s plan to ban rental bidding wars has a major flaw. Allowing “voluntary” higher bids means tenants will still feel pressured to outbid each other, much like what we’ve seen in New Zealand where rents have continued to rise despite similar policies. The real issue is the supply and demand imbalance. As long as there are more renters than available properties, prices will keep going up, regardless of these measures. Critics like Acorn are spot on without tackling the root causes, this policy won’t offer real protection for tenants.

doesn’t this bidding only happen in London?? Never had it happen to me in 23 years of being a landlord. I advertise at the highest market rate i think is achievable and negotiate down for the right tenant.