Editor's note: This brief was summarised by The Property AI Team from a report by Mortgage Solutions. Read the original article for full details.
Tenancy Fraud Rises Sharply, Driven by Fake References and High-Rent Properties
Tenancy fraud increased by 78% year-on-year between 2024 and 2025, according to data from Goodlord. The overall number of confirmed fraud cases rose by 49.4% in the same period, with employment fraud and identity manipulation among the fastest-growing categories.
Referee-flagged tenancy fraud saw a significant rise, while fake employment references increased by 226.6% and cases involving identity manipulation rose by 140.4% between 2024 and 2025. Fraud rates were highest in rental bands above £8,001 per month, peaking at 17.9 cases per 1,000 applicants for properties with monthly rents above £10,000. The lowest fraud levels were found in properties with rents between £0 and £500 per month.
Recent data indicates that while fraud remains a challenge, rates have declined from previous highs. The average fraud rate in Q2 2026 was 2.98 per 1,000 applications, down from a peak of 5.51 in Q4 2024.
A regional analysis covering April 2023 to July 2026 showed that London had the highest fraud rate at 6.7 cases per 1,000 applications. The West Midlands followed at 3.5, and the North West at 3.4.
The average direct financial exposure for landlords linked to a single fraudulent tenancy was estimated at £9,601. This figure includes legal fees, court and bailiff costs, rent arrears, void periods, and property damage.
Data from tenant verification platform Trusted Sources showed high detection rates for various fraud types: over 97% for fake employment references, 98% for forged payslips, 83% for referee fraud, and more than 90% for fake document fraud. Goodlord noted that fraudulent applicants are less likely to connect to the Trusted Sources verification system than genuine renters, but this is not a guarantee of fraud.
Goodlord emphasised the importance of robust verification measures for landlords to avoid costly fraudulent tenancies. Recommendations included strong letting agency processes, fraud detection technology, and rent protection insurance as ways to strengthen defences against tenancy fraud.
Source: Mortgage Solutions