Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

FCA Opened Only One Mortgage Fraud Investigation in 2025

The Financial Conduct Authority (FCA) opened just one enforcement investigation into mortgage fraud in 2025, according to Freedom of Information data obtained by client due diligence platform Thirdfort. This marks a significant decline from the three to four cases per year recorded in previous years.

Since 2018, the FCA has opened a total of 18 mortgage fraud investigations. The 2025 figure brings enforcement activity close to levels last seen during the Covid pandemic.

The low number of investigations has raised questions about whether regulatory action is keeping pace with the evolving nature of financial fraud. The data was released as the Home Office published its Fraud Strategy 2026–2029 in March, which acknowledges that fraud has become more global and digitally advanced.

The apparent reduction in FCA enforcement activity comes at a time when fraud is becoming increasingly sophisticated. The UK housing market is expected to see muted sales over the next 12 months, which could create additional pressure points for fraud prevention as transaction volumes fluctuate.

The data highlights potential gaps in regulatory oversight at a time when property transactions remain vulnerable to fraud. With stamp duty costs deterring homeowners from moving, reduced transaction volumes may also affect the detection and reporting of fraudulent activity across the sector.

The FCA’s enforcement figures contrast with broader concerns about the scale of fraud in the UK financial system, suggesting either a reduction in detected cases or a shift in how mortgage fraud investigations are being handled across different enforcement agencies.