Rental fraud cases fall but average losses per case rise sharply

Rental fraud cases fall but average losses per case rise sharply

Reported rental fraud incidents in England and Wales have dropped by 18% over three years, yet the average financial loss per victim has increased by nearly half, according to analysis of recent data.

Rental fraud reports declined from 4,982 in the 2023/24 financial year to 4,092 in 2025/26, a decrease of 18%. However, total annual losses rose by 20%, from £10.74 million to £12.84 million. This means the average loss per reported case increased by 46%, from £2,156 to £3,138.

The data, compiled by Just Landlords using figures from Action Fraud and the Metropolitan Police, also reveals significant regional variations. Derbyshire saw the largest drop in reported cases, down 64% over three years, followed by Bedfordshire with a 61% reduction. Other areas with notable declines include Wiltshire, Dyfed-Powys, Cleveland, Nottinghamshire, Jersey, the Isle of Man, Avon and Somerset, and Gloucestershire. Conversely, Warwickshire, Devon and Cornwall experienced double-digit percentage increases in reports.

Analysis of rental fraud trends and regional differences

The overall reduction in reported rental fraud cases suggests some progress in combating this crime. However, the sharp rise in average losses per case indicates that when fraud does occur, it is becoming more financially damaging for victims. This could reflect increasingly sophisticated scams or higher-value targets being exploited.

Regional disparities in fraud reports may be influenced by local market conditions, awareness levels, and law enforcement activity. The steep declines in some counties contrast with increases elsewhere, pointing to the need for targeted local responses. The total reported losses from rental fraud over the three-year period amount to £35.64 million, underscoring the scale of the issue.

Implications for landlords and letting agents

Rental fraud poses a dual threat: it harms tenants financially and damages the reputation of legitimate landlords and agents. Fraudsters often impersonate landlords or agents to deceive prospective tenants, undermining trust in the sector. For landlords and letting agents, this highlights the importance of rigorous tenant verification and clear communication.

Protecting tenant deposits through official government schemes remains a vital safeguard. Additionally, providing comprehensive and transparent tenancy documentation can help prevent fraud and reassure tenants. Landlords should also be vigilant about identity verification processes and consider using technology tools to confirm the legitimacy of applicants.

Letting agents have a role in educating landlords and tenants about the risks of rental fraud and the steps to mitigate it. Maintaining accurate records and promptly reporting suspected fraud can assist law enforcement efforts and help protect the sector’s integrity.

Challenges and uncertainties in tackling rental fraud

Despite the encouraging decline in case numbers, the increasing financial impact per incident raises questions about the evolving nature of rental fraud. It is unclear whether fraudsters are adopting more complex methods or focusing on fewer but higher-value scams. The data does not specify the types of fraud involved, such as fake listings, identity theft, or deposit scams, leaving some uncertainty about the precise risks.

Landlords and agents must monitor regulatory and enforcement developments closely. Changes in tenancy law, deposit protection rules, or fraud prevention initiatives could influence how rental fraud is addressed. The sector would benefit from clearer guidance on best practices for fraud prevention and stronger collaboration with law enforcement agencies.

Practical steps landlords should take now

• Ensure all tenant deposits are protected through recognised government schemes to provide legal and financial safeguards.
• Use thorough identity verification and reference checks to confirm tenant legitimacy before entering agreements.
• Provide clear, written tenancy agreements and documentation to tenants, reducing opportunities for fraudsters to impersonate landlords.
• Stay informed about local and national trends in rental fraud and report any suspicious activity promptly to Action Fraud or the police.
• Consider adopting digital tools and platforms that enhance tenant screening and document management to reduce fraud risks.

Supporting landlords with compliance and fraud prevention

The Landlord Association (TLA) offers members access to compliance resources and practical guidance that can help reduce rental fraud risks. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist landlords and letting agents in organising property records, managing tenancy documents, and recording key actions such as tenant verification and deposit protection. These features can support landlords in maintaining thorough evidence of compliance and fraud prevention efforts.

Membership also provides updates on regulatory changes and sector developments, helping landlords stay ahead of emerging fraud tactics and legal requirements. Access to TLA’s compliance support can be a valuable tool in safeguarding portfolios and maintaining tenant trust.

Explore TLA membership and learn more about ORBIT BETA access to strengthen your approach to rental fraud prevention and property management.

Looking ahead, landlords and agents should remain alert to the changing nature of rental fraud and continue to adopt best practices in tenant screening and documentation. Ongoing vigilance and proactive measures will be essential to protect both tenants and the reputation of the private rented sector.

Sources: Letting Agent Today