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

Majority of UK Landlords Report Rise in Tenant Fraud

A recent survey of 1,000 UK landlords found that 77% believe tenant fraud has become more common over the past three years. The research, conducted by LegalforLandlords, highlights growing concerns about fraudulent activity in the private rented sector.

According to the survey, 39% of landlords said tenant fraud had become significantly more common, while 38% reported it had become somewhat more common. The findings follow a BBC Panorama investigation into serious cases of tenancy fraud.

One in ten landlords surveyed said they had experienced tenant fraud first-hand. The most common form involved tenants deliberately failing to pay rent after providing misleading information during the application process, accounting for 34% of reported cases. Other forms of fraud included properties being used for criminal activity (19%), unauthorised rent-to-rent arrangements or subletting (10%), false employment or income information (9%), and undisclosed occupants (9%).

The financial impact of tenant fraud was often substantial. Almost a quarter (24%) of affected landlords said the most serious incident had cost them £5,000 or more, while 22% reported losses between £2,500 and £4,999. Only 2% said they had suffered no financial loss. Nearly a third (31%) of landlords absorbed the loss without recovering any money, and 22% resolved the issue through formal eviction proceedings. More than one in ten (12%) said their case remained unresolved.

While most landlords who had experienced fraud said it had happened only once in the past five years, almost a third reported multiple incidents.

These findings underline the importance for letting agents and inventory clerks to remain vigilant and ensure thorough tenant referencing, identity, and affordability checks to help protect landlords from the risks and financial consequences of tenant fraud.