A think tank claims that four in 10 households renting privately that moved within the last year are paying an average £1,200 a year above the advertised rate. 

A poll of 1,001 adults, carried out for the New Economics Foundations, claims to show that renters are often forced into bidding wars.

The NEF says 39 per cent of private renters that have moved in the last year are paying above the advertised rent for their property. The median amount paid over the asking rent by the household is £100 a month and the mean amount is £190 a month.  

The think tank also claims that 45 per cent of new private renters had to pay more than one month of rent upfront to secure their home and that 21 per cent have seen their rent hiked mid-way through a tenancy “without their agreement.”

It also claims that 17 per cent were charged a fee to view the property while 19 per cent were asked for a copy of their CV.

Alex Diner, senior researcher at NEF, says: “This data shows just how difficult it can be for many people to find somewhere to call home. 

“The lack of affordable housing across the country forces people to enter into bidding wars, which end up meaning the rent they pay goes through the roof. And all too often, the properties they end up living in are cold and damp, with landlords who are not always willing to help. 

“Not only must the government stop backsliding on its commitment to reform the private rental sector, it also has an opportunity to make a real difference here. 

“In the short term, ministers must take action to ban these bidding wars. In the long term, building a new generation of high-quality, genuinely affordable social homes would ease the pressures on the housing market and provide people across the country with somewhere to live, rest and flourish.”