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Rental Market Bidding Wars Drive Up Prices

Bidding wars in the rental market are driving up prices and leaving many tenants without affordable housing.
   

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Renting a property in London has become increasingly competitive, with bidding wars between tenants driving up prices. Chris Sayers, a tenant from Wales, experienced this firsthand when he was asked to pay £100 more than the advertised rent to secure a flat. Despite the high price, Chris encountered problems with the property, including mushrooms growing out of the bathroom walls and a rat infestation. This phenomenon of bidding wars is not new in the property market, but it is now affecting more private renters like Chris. A survey by charity Shelter revealed that over half a million private renters in England missed out on a property in the last five years because someone else offered more money.

The high demand for rental properties has led to an increase in bidding wars, resulting in inflated prices. In Bristol, a community group called Acorn has been campaigning against this practice, as it has forced tenants to take out payday loans or move further away from the city due to unaffordable rents. Many tenants are afraid to speak up against bidding wars, fearing that it may affect their chances of finding suitable housing in the future. The Labour Party in the UK is advocating for a ban on bidding wars, following the example of New Zealand and some states in Australia.

Ben Beadle from the National Residential Landlords Association acknowledges that bidding wars occur but believes that the root cause of the problem lies in the lack of housing supply. He argues that banning bidding wars is not the solution and that a focus should be placed on addressing the factors that force tenants to engage in bidding wars, such as rising living costs and high mortgage rates. The government, on the other hand, states that the amount of rent charged in a tenancy is ultimately determined by landlords and tenants. They are currently working on a renters reform bill to create a fairer and more secure private rental sector.

In conclusion, bidding wars in the rental market have become increasingly common, driving up prices for tenants. This has resulted in many private renters missing out on properties due to others offering more money. The high demand for rental properties has led to a competitive market, with tenants resorting to bidding wars to secure a place to live. Campaigners argue that this practice is detrimental to tenants’ livelihoods and futures. While some advocate for a ban on bidding wars, others believe that addressing the underlying supply issues in the housing market is the key to resolving this problem.

Original news source: Renting: Bidding wars driving up prices for tenants (BBC)

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Vocabulary:

1competitiveInvolving or characterized by competition
2bidding warsIntense competition between potential buyers or renters, driving up prices
3tenantsPeople who rent property from a landlord
4pricesThe amount of money that is charged for something, such as goods or services
5propertyA piece of land or real estate that is owned or rented by someone
6mushroomsFungi that grow in damp conditions, often in the form of a cap on a stalk
7infestationThe presence of a large number of pests or insects in a particular place
8phenomenonA remarkable or exceptional occurrence or fact
9rentersPeople who rent property from a landlord, specifically in the private sector
10unaffordableNot able to be afforded or paid for
11campaignA series of organized activities or actions with a particular goal
12payday loansShort-term loans with high interest rates, typically due on the borrower’s next payday
13suitableAppropriate or fitting for a particular purpose or situation
14banOfficially or legally prohibit something
15reformThe action or process of making changes in order to improve or correct something

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: Have students read the article and then write a summary of the main points in their own words. They should focus on capturing the key information and main arguments presented in the article. Afterward, have students share their summaries with a partner and discuss any similarities or differences.

– Opinion Poll
Instructions: Divide the class into small groups and give each group a statement related to the article, such as “Bidding wars should be banned in the rental market.” Have students discuss the statement and then conduct a poll within their group to determine how many members agree or disagree. Afterward, each group can share their results with the class and engage in a class-wide discussion about the different opinions.

– Speed Summarizing
Instructions: Divide the class into pairs and give each pair a specific section of the article. Set a timer for a few minutes and have students take turns summarizing their section to their partner as quickly as possible. After the time is up, partners can switch roles and summarize the other section. Encourage students to focus on the main points and key details while speaking quickly.

– Vocabulary Pictionary
Instructions: Create a list of vocabulary words from the article, such as “bidding wars,” “rental market,” and “housing supply.” Divide the class into teams and give each team a word. The teams must then take turns drawing pictures to represent their word while the other teams try to guess what it is. This activity helps reinforce vocabulary and encourages creativity and teamwork.

– Pros and Cons
Instructions: Divide the class into two groups and assign each group a position to either support or oppose bidding wars in the rental market. Have students brainstorm and discuss the pros and cons of their assigned position, considering factors such as affordability, housing supply, and tenant rights. Afterward, each group can present their arguments to the class and engage in a debate or discussion.

Comprehension Questions:

1. How did Chris Sayers experience the effects of bidding wars in the rental market?
2. What problems did Chris encounter with the property he rented?
3. According to a survey by charity Shelter, how many private renters in England missed out on a property in the last five years due to someone else offering more money?
4. What has the high demand for rental properties led to in terms of prices?
5. What has the practice of bidding wars forced some tenants in Bristol to do?
6. Why are many tenants afraid to speak up against bidding wars?
7. According to Ben Beadle from the National Residential Landlords Association, what is the root cause of the problem of bidding wars in the rental market?
8. What is the government currently working on to create a fairer and more secure private rental sector?
Go to answers ⇩

Listen and Fill in the Gaps:

Renting a (1)______ in (2)______ has become increasingly competitive, with bidding wars between tenants driving up prices. Chris Sayers, a tenant from Wales, experienced this firsthand when he was asked to pay £100 more than the advertised rent to secure a flat. Despite the high price, Chris (3)______ problems with the property, including mushrooms (4)______ out of the bathroom walls and a rat infestation. This phenomenon of bidding wars is not new in the property market, but it is now affecting more private renters like Chris. A survey by charity Shelter revealed that over half a million private renters in England missed out on a property in the last five years because someone else offered more money.

The high demand for rental properties has led to an increase in bidding wars, resulting in inflated prices. In Bristol, a (5)______ group called Acorn has been campaigning against this practice, as it has (6)______ (7)______ to take out payday loans or move further away from the city due to unaffordable rents. Many tenants are (8)______ to speak up against bidding wars, fearing that it may affect their chances of finding suitable housing in the future. The Labour Party in the UK is advocating for a ban on bidding wars, following the example of New Zealand and some states in Australia.

Ben Beadle from the National Residential Landlords Association acknowledges that bidding wars occur but believes that the root cause of the problem lies in the lack of housing supply. He argues that banning bidding wars is not the solution and that a (9)______ should be placed on addressing the factors that force tenants to engage in bidding wars, such as rising living costs and high (10)______ rates. The (11)______, on the other hand, states that the amount of rent charged in a (12)______ is ultimately determined by landlords and tenants. They are currently working on a renters reform bill to create a fairer and more secure private rental sector.

In conclusion, bidding wars in the rental market have become increasingly (13)______, driving up prices for tenants. This has resulted in many private renters missing out on (14)______ due to (15)______ offering more money. The high demand for rental properties has led to a competitive market, with tenants resorting to bidding wars to secure a place to live. Campaigners argue that this practice is detrimental to tenants’ livelihoods and futures. While some advocate for a ban on bidding wars, others believe that addressing the underlying supply issues in the (16)______ market is the key to resolving this problem.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is your opinion on bidding wars in the rental market?
2. Have you ever experienced a bidding war when trying to rent a property? If so, how did it make you feel?
3. How would you feel if you had to pay more than the advertised rent to secure a flat?
4. Do you think banning bidding wars is the solution to the problem? Why or why not?
5. What are some alternatives to bidding wars that could help address the issue of rising rental prices?
6. How do you think bidding wars affect the rental market as a whole?
7. Do you think landlords should have the right to charge whatever rent they want, or should there be regulations in place?
8. How do bidding wars impact the availability of affordable housing?
9. What are some potential consequences of tenants being afraid to speak up against bidding wars?
10. How do rising living costs and high mortgage rates contribute to the problem of bidding wars?
11. Do you think the government should play a larger role in regulating the rental market to prevent bidding wars?
12. What are some possible long-term solutions to the issue of bidding wars in the rental market?
13. Have you ever had to take out a payday loan or make other financial sacrifices in order to afford your rent?
14. How do you think bidding wars affect the overall quality of rental properties?
15. Do you think the renters reform bill will effectively address the issue of bidding wars? Why or why not?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. competitive
2. bidding wars
3. tenants
4. prices
5. property
6. mushrooms
7. infestation
8. phenomenon
9. renters
10. unaffordable
11. campaign
12. payday loans
13. suitable
14. ban
15. reform

Meanings:
(A) A piece of land or real estate that is owned or rented by someone
(B) People who rent property from a landlord
(C) The action or process of making changes in order to improve or correct something
(D) The presence of a large number of pests or insects in a particular place
(E) A series of organized activities or actions with a particular goal
(F) The amount of money that is charged for something, such as goods or services
(G) Intense competition between potential buyers or renters, driving up prices
(H) Not able to be afforded or paid for
(I) Short-term loans with high interest rates, typically due on the borrower’s next payday
(J) Fungi that grow in damp conditions, often in the form of a cap on a stalk
(K) Involving or characterized by competition
(L) People who rent property from a landlord, specifically in the private sector
(M) A remarkable or exceptional occurrence or fact
(N) Officially or legally prohibit something
(O) Appropriate or fitting for a particular purpose or situation
Go to answers ⇩

Multiple Choice Questions:

1. What has led to an increase in bidding wars in the rental market in London?
(a) Low supply of rental properties
(b) Decreased living costs
(c) Decreased mortgage rates
(d) High demand for rental properties

2. How did Chris Sayers experience the effects of bidding wars in the rental market?
(a) He encountered problems with the property, including mushrooms growing out of the bathroom walls and a rat infestation.
(b) He had to pay £100 more than the advertised rent to secure a flat.
(c) He missed out on a property because someone else offered more money.
(d) All of the above.

3. What did a survey by charity Shelter reveal about private renters in England?
(a) Private renters are afraid to speak up against bidding wars.
(b) Private renters have been forced to take out payday loans or move further away from the city due to unaffordable rents.
(c) All of the above.
(d) Over half a million private renters missed out on a property in the last five years because someone else offered more money.

4. Which country has banned bidding wars in the rental market?
(a) New Zealand
(b) United Kingdom
(c) Australia
(d) Wales

5. What does Ben Beadle from the National Residential Landlords Association believe is the root cause of bidding wars in the rental market?
(a) High demand for rental properties
(b) Rising living costs
(c) Lack of housing supply
(d) High mortgage rates

6. What is the government currently working on to create a fairer and more secure private rental sector?
(a) Banning bidding wars
(b) Renters reform bill
(c) Increasing housing supply
(d) Decreasing living costs

7. What is the main concern of campaigners against bidding wars in the rental market?
(a) Detrimental effects on tenants’ livelihoods and futures
(b) Lack of housing supply
(c) Rising living costs
(d) High mortgage rates

8. What is the main argument against banning bidding wars in the rental market?
(a) Banning bidding wars would decrease the demand for rental properties.
(b) Banning bidding wars would increase housing supply.
(c) Banning bidding wars is not the solution to the problem.
(d) Banning bidding wars would decrease living costs.

Go to answers ⇩

True or False Questions:

1. Renting a property in London has become less competitive, leading to cooperation between tenants.
2. The tenant encountered no problems with the property, including mushrooms growing out of the bathroom walls and a rat infestation.
3. The Labour Party in the UK is advocating for a ban on bidding wars, following the example of New Zealand and some states in Australia.
4. A tenant from Wales had to pay £100 less than the advertised rent to secure a flat in London.
5. Bidding wars have resulted in decreased rental prices in Bristol, allowing tenants to save more money or stay closer to the city.
6. Over half a million private renters in England missed out on a property in the last five years due to someone else offering more money.
7. Many tenants are afraid to speak up against bidding wars for fear of affecting their chances of finding suitable housing in the future.
8. Ben Beadle from the National Residential Landlords Association believes that the lack of housing supply is the root cause of bidding wars, and banning them is not the solution.
Go to answers ⇩

Write a Summary:

Write a summary of this news article in two sentences.




Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. How has the increase in bidding wars affected rental prices in London?
2. What problems did Chris Sayers encounter with the property he rented?
3. Why are many tenants afraid to speak up against bidding wars?
4. What is the Labour Party advocating for in response to bidding wars?
5. According to Ben Beadle, what is the root cause of the problem of bidding wars in the rental market?

Answers

Comprehension Question Answers:

1. Chris Sayers experienced the effects of bidding wars in the rental market when he was asked to pay £100 more than the advertised rent to secure a flat.
2. Chris encountered problems with the property he rented, including mushrooms growing out of the bathroom walls and a rat infestation.
3. According to a survey by charity Shelter, over half a million private renters in England missed out on a property in the last five years because someone else offered more money.
4. The high demand for rental properties has led to inflated prices.
5. The practice of bidding wars has forced some tenants in Bristol to take out payday loans or move further away from the city due to unaffordable rents.
6. Many tenants are afraid to speak up against bidding wars, fearing that it may affect their chances of finding suitable housing in the future.
7. According to Ben Beadle from the National Residential Landlords Association, the root cause of the problem of bidding wars in the rental market lies in the lack of housing supply.
8. The government is currently working on a renters reform bill to create a fairer and more secure private rental sector.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) property
(2) London
(3) encountered
(4) growing
(5) community
(6) forced
(7) tenants
(8) afraid
(9) focus
(10) mortgage
(11) government
(12) tenancy
(13) common
(14) properties
(15) others
(16) housing
Go back to questions ⇧

Vocabulary Meanings Answers:

1. competitive
Answer: (K) Involving or characterized by competition

2. bidding wars
Answer: (G) Intense competition between potential buyers or renters, driving up prices

3. tenants
Answer: (B) People who rent property from a landlord

4. prices
Answer: (F) The amount of money that is charged for something, such as goods or services

5. property
Answer: (A) A piece of land or real estate that is owned or rented by someone

6. mushrooms
Answer: (J) Fungi that grow in damp conditions, often in the form of a cap on a stalk

7. infestation
Answer: (D) The presence of a large number of pests or insects in a particular place

8. phenomenon
Answer: (M) A remarkable or exceptional occurrence or fact

9. renters
Answer: (L) People who rent property from a landlord, specifically in the private sector

10. unaffordable
Answer: (H) Not able to be afforded or paid for

11. campaign
Answer: (E) A series of organized activities or actions with a particular goal

12. payday loans
Answer: (I) Short-term loans with high interest rates, typically due on the borrower’s next payday

13. suitable
Answer: (O) Appropriate or fitting for a particular purpose or situation

14. ban
Answer: (N) Officially or legally prohibit something

15. reform
Answer: (C) The action or process of making changes in order to improve or correct something
Go back to questions ⇧

Multiple Choice Answers:

1. What has led to an increase in bidding wars in the rental market in London?
Answer: (d) High demand for rental properties

2. How did Chris Sayers experience the effects of bidding wars in the rental market?
Answer: (b) He had to pay £100 more than the advertised rent to secure a flat.

3. What did a survey by charity Shelter reveal about private renters in England?
Answer: (d) Over half a million private renters missed out on a property in the last five years because someone else offered more money.

4. Which country has banned bidding wars in the rental market?
Answer: (a) New Zealand

5. What does Ben Beadle from the National Residential Landlords Association believe is the root cause of bidding wars in the rental market?
Answer: (c) Lack of housing supply

6. What is the government currently working on to create a fairer and more secure private rental sector?
Answer: (b) Renters reform bill

7. What is the main concern of campaigners against bidding wars in the rental market?
Answer: (a) Detrimental effects on tenants’ livelihoods and futures

8. What is the main argument against banning bidding wars in the rental market?
Answer: (c) Banning bidding wars is not the solution to the problem.
Go back to questions ⇧

True or False Answers:

1. Renting a property in London has become less competitive, leading to cooperation between tenants. (Answer: False)
2. The tenant encountered no problems with the property, including mushrooms growing out of the bathroom walls and a rat infestation. (Answer: False)
3. The Labour Party in the UK is advocating for a ban on bidding wars, following the example of New Zealand and some states in Australia. (Answer: True)
4. A tenant from Wales had to pay £100 less than the advertised rent to secure a flat in London. (Answer: False)
5. Bidding wars have resulted in decreased rental prices in Bristol, allowing tenants to save more money or stay closer to the city. (Answer: False)
6. Over half a million private renters in England missed out on a property in the last five years due to someone else offering more money. (Answer: True)
7. Many tenants are afraid to speak up against bidding wars for fear of affecting their chances of finding suitable housing in the future. (Answer: True)
8. Ben Beadle from the National Residential Landlords Association believes that the lack of housing supply is the root cause of bidding wars, and banning them is not the solution. (Answer: True)
Go back to questions ⇧

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