Individuals aged between 18 and 39 account for almost 75% of reported rental fraud cases, resulting in losses nearing £9m across approximately 5,000 incidents last year, the latest data from the National Fraud Intelligence Bureau (NFIB) reveals.
In light of these statistics, Propertymark is urging letting agents to be vigilant and proactive in combating rental fraud to protect consumers and themselves.
“By implementing rigorous verification processes, educating clients, and staying informed about the latest scam tactics, agents can significantly reduce the risk of fraud and maintain the integrity of the rental market,” the membership organisation said.
“Rental fraud happens when prospective tenants are tricked into paying an upfront fee to rent a property. However, the property does not exist, has already been rented out, or has been rented to multiple victims,” it added. “Victims will lose the upfront fee they have paid and cannot rent the property they thought they had secured.”
According to Propertymark, fraudsters will often contact their victims online. The adverts will seem genuine and are n accompanied by photos and contact information. In some cases, the victim will view the property in person, but in most cases, the payment is made without a prior viewing.
Action Fraud states that reports peak in September each year as fraudsters target students organising their accommodation for the academic year. Summer holiday lets are also a key target, accounting for 27% of reports in July and August.
Propertymark has shared the following preventative measures agents can take to safeguard both clients and their reputation:
+ Verify property ownership – Ensure all landlords have legitimate ownership or management rights for the properties they let or wish to let. Confirmation can be confirmed through Land Registry checks or official documentation.
+ Conduct thorough tenant screenings – Using comprehensive referencing services to validate tenant identities, employment statuses, and rental histories will reduce the risk of accepting fraudulent applications.
+ Educate prospective tenants – Inform applicants about common rental scams, advise them to avoid making payments before viewing properties in person and be cautious of deals that seem too good to be true. Adverts with no photos or where multiple adverts have the same photos should raise a red flag.
+ Maintain transparent communication – Provide clear and consistent information throughout the rental process. Ensure all terms, fees, and conditions are documented and accessible to clients.
