Researchers at Queen Mary University of London have launched a project to investigate bidding wars in the private rental sector. This study aims to explore rental market dynamics and tenant bidding processes in London. By delving into the intricacies of these bidding wars, the researchers hope to shed light on how they impact rent levels and the overall rental market. The project is designed to provide a comprehensive understanding of the factors driving these bidding wars and their effects on prospective tenants.
The study will examine the roles of different market participants, including landlords, estate agents, and tenants, to see how their interactions influence rent prices. By analysing data and gathering insights from various stakeholders, the researchers aim to identify patterns and trends that contribute to increasing rents. This research is particularly relevant in the current housing market, where affordability and accessibility remain pressing issues for many renters in the capital.
A briefing note from the academics states that anecdotal evidence suggests tenant bidding might be contributing to rent inflation in the private rental market. They argue that housing and economic policy debates, along with housing and financial statistics, often fail to capture how real estate and rental market dynamics are influenced by the interactions and practices of specific groups such as letting agents, landlords, and tenants. These dynamics include processes like viewing properties, providing and checking supporting documents, bidding, negotiating, and signing contracts. This perspective highlights the complexity of the rental market, where various actors and their actions play a crucial role in shaping outcomes.
The research aims to delve deeper into these interactions and practices to provide a clearer picture of how the private rental market operates on the ground. By focusing on tenant bidding, an area that has been relatively under-researched, the academics hope to uncover how this practice affects overall rent levels and market dynamics. They believe that understanding these everyday interactions is key to grasping the broader trends in rent inflation and market behaviour. This approach could offer new insights into the factors driving changes in the rental market, beyond the usual economic indicators.
Ultimately, the researchers aim to bridge the gap between headline real estate dynamics and the everyday practices within the rental market. By examining the routine actions of letting agents, landlords, and tenants, they seek to understand how these contribute to the overall trends observed in housing prices and rent levels. This research could potentially inform housing policy and economic strategies by highlighting the practical aspects of rental market operations that are often overlooked. Through their analysis, the academics hope to shed light on the real-world implications of tenant bidding and its role in the private rental sector.
A university-prepared questionnaire is seeking detailed experiences from both tenants and landlords, with assurances that all responses will remain anonymous. The survey explains that any references to individual responses will use pseudonyms, removing any potentially identifying information to protect the respondents’ privacy.
The questionnaire includes a range of questions designed to gather insights into the dynamics of the rental market. For example, one question directed at landlords asks: “Would you say that bidding tends to be led by you as the landlord, the letting agent, or prospective tenants?” This aims to understand who primarily drives the bidding process, providing a clearer picture of how rental prices might be influenced.
The briefing note from the university, however, does not specify any measures for verifying the identity or credibility of the respondents. This raises questions about the accuracy and reliability of the data collected. Despite this, the questionnaire has gained traction after being publicised on social media by the Generation Rent activist group. This has helped to broaden its reach, encouraging more landlords and tenants to share their experiences and contribute to the study.
You can see the survey here.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property