Rental scammers cost landlords £9.6k per tenancy, warns referencing giant
Summary
Goodlord reports that fraudulent tenancy applications are costing landlords and letting agents an estimated £4.1 billion a year, with direct losses averaging £9,600 per tenancy. The article says fraud has risen by 40% in the past year, with London and the prime rental market identified as higher-risk areas, and notes that scammers are increasingly using AI to create convincing fake documentation.
Why it matters
Residential property surveyors involved in rental, investment or portfolio work should be aware of the growing fraud risk affecting tenancy processes and income assumptions. The findings may also inform due diligence, risk assessment and advice to landlords and agents on referencing controls.
Key points
- Goodlord estimates tenancy fraud is costing landlords and letting agencies £4.1 billion annually.
- Direct loss per fraudulent tenancy is put at £9,600.
- Fraudulent applications have reportedly increased by 40% over 12 months, with London highlighted as a hotspot.
- Criminals are said to be using AI to generate fake references, IDs and employment documents.
- Industry voices urge stronger, pattern-based checks across the referencing process.
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