Legislation – Renters’ Rights Act 2025

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Part 1Tenancy reform

Chapter 6Stating the proposed rent and rental bidding

56Requirement to state rent and to avoid rental bidding

(1)

This section applies to a letting of a dwelling (a “proposed letting”) if the letting is to be on an agreement which may give rise to a relevant tenancy.

(2)

A relevant person must not advertise in writing, or otherwise offer in writing, the proposed letting unless—

(a)

the rent that is to be payable under the letting is a specific amount (the “proposed rent”), and

(b)

the advertisement or offer states the proposed rent.

(3)

A relevant person must not—

(a)

invite or encourage any person to offer to pay an amount of rent under the proposed letting that exceeds the stated rent, or

(b)

accept an offer from any person to pay an amount of rent under the proposed letting that exceeds the stated rent.

(4)

For the purposes of subsection (3)(a) or (b), the “stated rent” is the proposed rent which is stated—

(a)

by the relevant person who is inviting or encouraging, or accepting, the offer of rent, or

(b)

by any other relevant person,

in any written advertisement for, or written offer of, the proposed letting.

(5)

Subsection (2) does not apply to a sign displayed at the dwelling, or at premises in which the dwelling is situated, which merely advertises that the dwelling is to let.

(6)

In this section—

“prospective landlord” means the person who proposes to make a proposed letting;

“relevant person”, in relation to a proposed letting, means—

(a)

the prospective landlord, or

(b)

a person acting or purporting to act directly or indirectly on behalf of the prospective landlord;

“relevant tenancy” means an assured tenancy within the meaning of the 1988 Act, other than a tenancy that is—

(a)

a tenancy of social housing, within the meaning of Part 2 of the Housing and Regeneration Act 2008, or

(b)

a tenancy of supported accommodation, within the meaning given by paragraph 12 of Schedule 2 to the 1988 Act.

57Financial penalties

(1)

A local housing authority may impose a financial penalty under this subsection on a person if satisfied on the balance of probabilities that the person has breached the prohibition imposed by section 56(2) or (3).

(2)

If—

(a)

the local housing authority imposes a financial penalty under subsection (1) on a person, and

(b)

within the period of five years ending with the date on which that penalty was imposed, a previous financial penalty under subsection (1) was imposed on that person in relation to a breach of the same subsection of section 56,

then the local housing authority may impose an additional financial penalty under this subsection on that person.

(3)

The amount of a financial penalty imposed under this section is to be determined by the authority imposing it, but must not be more than £7,000.

(4)

Subsection (2) does not enable a penalty to be imposed after the final notice in respect of the previous penalty has been withdrawn or quashed on appeal.

(5)

Where—

(a)

a local housing authority is satisfied as mentioned in subsection (1) in relation to two or more persons, and

(b)

the breaches in relation to which the local housing authority is so satisfied arise from the same conduct by one or more of the persons acting on behalf of the others,

the local housing authority may impose a financial penalty under that subsection on the persons (or some of them) jointly, and if the local housing authority does so, the persons on whom the penalty is imposed are jointly and severally liable to pay it.

(6)

The Secretary of State may give guidance to local housing authorities about the exercise of their functions under this section.

(7)

Local housing authorities must have regard to any guidance issued under subsection (6).

(8)

The Secretary of State may by regulations amend the amount specified in subsection (3) to reflect changes in the value of money.

(9)

For the purposes of this section—

(a)

a financial penalty is imposed under this section on the date specified in the final notice as the date on which the notice is given, and

(b)

“final notice” has the meaning given by paragraph 6 of Schedule 5.