Rental fraud reports fall but financial losses rise sharply
Reported rental fraud cases in England and Wales have decreased by 18% over three years, yet the average financial loss per case has risen by 46%, according to data from Action Fraud and the Metropolitan Police.
Rental fraud remains a significant concern for landlords and tenants despite the decline in reported cases. Analysis by Just Landlords shows that while the number of reports dropped from 4,982 in the 2023/24 financial year to 4,092 in 2025/26, the total annual losses increased from £10.74 million to £12.84 million. This means the average amount lost per victim rose from £2,156 to £3,138.
The regional data reveals notable reductions in reported cases in Derbyshire, Bedfordshire, Wiltshire, and Dyfed-Powys, with declines of over 50% in some areas. Conversely, Warwickshire, Devon, and Cornwall experienced increases in rental fraud reports.
Analysis of rental fraud trends and regional variations
The overall decline in rental fraud cases is a positive development for the private rented sector, reflecting improvements in awareness and preventative measures. However, the rising average loss per incident indicates that fraudsters are becoming more sophisticated or targeting higher-value victims. The total losses over the three-year period amounted to £35.64 million, underscoring the ongoing financial impact of rental fraud.
Derbyshire recorded the largest drop in reported cases, falling by 64%, followed by Bedfordshire with a 61% reduction. Other areas with significant declines include Wiltshire and Dyfed-Powys (both 57%), Cleveland (53%), and Nottinghamshire (51%). Jersey and the Isle of Man also saw a 50% decrease, while Avon and Somerset and Gloucestershire reported falls of 49%.
In contrast, Warwickshire, Devon, and Cornwall experienced double-digit percentage increases in rental fraud reports, highlighting that the problem remains unevenly distributed across regions.
Context and implications for landlords and tenants
Rental fraud typically involves criminals posing as landlords or agents to deceive tenants into handing over deposits or rent for properties they do not own or have the right to let. This crime affects both tenants, who suffer financial losses, and legitimate landlords, whose reputations may be damaged by association.
The increase in average losses suggests that fraudsters may be targeting more valuable properties or employing more convincing scams. This trend raises the stakes for landlords and letting agents to implement robust verification processes and maintain transparent, secure tenancy arrangements.
Landlords are encouraged to protect tenant deposits through official government schemes and provide clear, comprehensive tenancy documentation. These measures not only help safeguard tenants but also reinforce the credibility of genuine landlords and agents.
Practical steps for landlords and letting agents
Given the rise in financial losses from rental fraud despite fewer cases, landlords and agents should prioritise tenant verification and fraud prevention. This includes thorough identity checks, confirming ownership or management rights, and using recognised deposit protection schemes.
Clear communication and documentation can also help prevent misunderstandings that fraudsters exploit. Landlords should ensure tenancy agreements are detailed and accessible, and keep records of all tenant interactions and payments.
Letting agents must remain vigilant against fraudulent listings and scams, verifying the credentials of landlords and prospective tenants alike. Regular training and awareness updates can help staff recognise the signs of rental fraud and respond appropriately.
Uncertainties and areas to monitor
While the data shows a decline in reported cases, it is unclear whether all incidents are being reported or detected. Some victims may not come forward due to embarrassment or lack of awareness, potentially masking the true scale of the problem.
The reasons behind regional differences in fraud trends also require further investigation. Economic factors, local housing market conditions, and the effectiveness of law enforcement may all influence these variations.
Landlords and agents should keep abreast of evolving fraud tactics and regulatory changes that impact tenancy verification and deposit protection. Staying informed will be crucial to adapting practices and reducing vulnerability to fraud.
What landlords should consider now
- Review and strengthen tenant identity verification procedures to reduce the risk of fraud.
- Ensure all deposits are protected through government-approved schemes and tenancy agreements are clear and comprehensive.
- Maintain detailed records of tenant communications, payments, and property management activities as evidence of compliance and due diligence.
- Stay updated on local and national fraud trends, and engage with industry bodies for guidance and support.
- Educate tenants about the risks of rental fraud and encourage them to verify landlord credentials before making payments.
Supporting landlords with compliance and fraud prevention
The Landlord Association (TLA) offers members access to practical compliance resources and guidance to help reduce the risk of rental fraud. Through TLA’s developing ORBIT platform, currently in BETA testing, landlords and letting agents can organise property records, manage tenancy documentation, and keep track of key compliance actions. ORBIT’s features include tools for recording repairs, inspections, and communications, supporting landlords in maintaining clear evidence of due diligence.
Membership also provides access to up-to-date information on regulatory developments and best practices for tenant verification and deposit protection. By leveraging these resources, landlords can better safeguard their portfolios against fraud and uphold professional standards in the private rented sector.
Explore TLA membership and learn more about ORBIT BETA access to enhance your property management and compliance capabilities.
Rental fraud continues to pose a financial threat despite fewer reported cases. Landlords and agents must remain vigilant and proactive in verifying tenants and protecting deposits to mitigate losses and maintain trust in the sector.
Sources: Letting Agent Today
TLA - The Landlord Association