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Homeppl has just released its The State of Lettings Fraud, 2024 report, detailing a year’s view of the company’s fraud catches.
The tenant referencing and fraud prevention technology examines the numbers, the profiles and crunch the data on what tenancy fraud looked like last year.
The report, based on data collected from January to December 2024, highlights the rising challenges posed by fraudsters and the transformative impact of advanced fraud detection technologies.
Homeppl makes the following claims within its key findings in the report:
+ £16.9 saved: Homeppl’s fraud prevention efforts protected clients from financial losses caused by tenancy fraud.
+ 22x ROI: For every £1 spent on Homeppl’s technology, clients saved £22.60 in fraud-related costs.
+ 94% of fraud cases involved fake documents, with doctored bank statements being the most common tactic.
+ London: The fraud hotspot: 60% of all flagged fraud cases occurred in the capital, with West London seeing a significant increase.
West London was the epicentre of tenancy fraud in the UK representing 40% of all London cases.
+ Profiles of fraudsters: The average fraudster targeted contracts worth £37,598 annually, with falsified incomes averaging £85,945.
The report also states that 2024 saw private rents increase by 8.7%, with London rents rising by 10.4%, exacerbating affordability challenges.
As renters faced mounting financial pressure, tenancy fraud surged, presenting significant risks to landlords and property managers. The average cost of fraud per tenancy—including eviction and legal fees—was estimated at £64,000.
Looking ahead, the report also emphasises the importance of robust tenant screening and risk management to ensure compliance and sustainability in an increasingly complex landscape.
Alexander Siedes, CEO of Homeppl, commented: “2024 was a pivotal year for combating tenancy fraud. Our clients rely on us to stay one step ahead of increasingly sophisticated fraudsters, and this report underscores the critical role technology plays in safeguarding the rental market. Homeppl exposes these data insights annually to help the market understand what the most recent face of tenancy fraud looks like.”
You can access the report by clicking here.
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