Lettings agents could be forced to stop fostering bidding wars among tenants, according to reports.

The move is rumoured to be included in the Renters’ Rights Bill, which is due to be introduced in Parliament this week.

Reports in The Guardian suggests that as well as scrapping Section 21 eviction notices, bidding wars will be banned by stopping agents from asking or encouraging renters to bid more than the listed rental price.

However, renters will be allowed to make a higher offer if they want to, according to the report.

The legislation is also expected to avoid introducing rent caps.

Dan Wilson Craw, deputy chief executive of Generation Rent, said: “The Government is right to take a stand on the egregious practice of bidding wars, but the proposed measures risk being ineffective at countering the problem. Permitting would-be tenants to ‘voluntarily’ bid above the asking price will just see this practice becoming the norm, such is the imbalance of power when renters are desperate to find a home. This move risks seeing the Government having to revisit the issue, as has been recently seen in the Australian state of Victoria.”