£4.1 bn cost of tenancy fraud
Summary
Goodlord’s analysis suggests tenancy fraud is a significant and growing issue in the UK private rented sector, with suspected cases rising sharply in 2025 and London showing the highest rates. The report highlights increasing use of AI to fabricate documents and identities, and estimates the average direct exposure per fraudulent tenancy at £9,601.
Why it matters
Residential property surveyors involved in rental due diligence, valuation, and risk assessment should be aware that fraudulent tenancy applications can distort occupancy, income reliability, and asset risk. The findings also reinforce the need for robust referencing and identity checks in higher-value rental markets.
Key points
- Goodlord estimates tenancy fraud could cost the private rented sector up to £4.1 billion a year.
- Suspected fraud rose 40% in 2025, with London the most affected region.
- AI is being used to create forged payslips, references and false identities.
- Higher-value rental properties appear more vulnerable to fraud.
- Fake employment references were the fastest-growing fraud type in 2025.
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