A prominent figure in the lettings industry is warning that any proposed ban on so-called bidding wars will end up with pushing rents even higher.

A ban on the bidding wars is set to be part of the Labour government’s Renters Rights Bill, announced in last month’s Queens Speech and set to be launched in the autumn. 

The chief executive of the Tenancy Deposit Service, Steve Harriott, says any such ban will mean landlords and agents will initially market properties at a higher figure, knowing they are not in a position to accept rival bids above the asking price. If they don’t succeed in finding tenants they may reduce the asking rent, but the initial marketing is likely to be at a higher figure, he warns.

Harriott makes his warning in a brief video interview with Letting Agent Today’s Lee Dahill. The video is under three minutes and covers Harriott’s concerns over the unintended consequences of such a ban – and his doubt about whether it would actually succeed.

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