Homebuyers, sellers and homeowners remortgaging are being urged to pay greater attention to property fraud as criminals continue to target both property ownership and money moving through transactions.
Mortgage Advice Bureau says many clients remain unaware of the risks or the steps they can take to protect their identity and property.
The warning comes as official figures underline the potential scale of the threat. HM Land Registry says it prevented 97 registered title fraud attempts involving properties worth £58 million during the year to March 2024.
Property fraud can involve criminals impersonating an owner to sell or mortgage their property without their knowledge. HM Land Registry says landlords, people living overseas and owners of empty or mortgage-free properties can be particularly vulnerable.
MONEY AT RISK
Buyers also face the separate threat of payment diversion fraud during conveyancing.
Official fraud guidance warns that criminals can impersonate a buyer’s solicitor and provide fraudulent bank details in an attempt to steal deposits or completion funds. Buyers are advised to independently verify payment details with their solicitor before transferring money.
Rachel Geddes (main picture), Strategic Lender Relationship Director at Mortgage Advice Bureau, says: “It’s striking how few clients are aware of property fraud, or the steps they can take to protect their identity through the buying, selling, or remortgaging process. As an industry, we have a responsibility to raise that awareness, and a five-minute conversation now can save someone a huge amount of stress and financial harm later.
“Open banking has brought real benefits for consumers – including faster decisions and more transparency – and we shouldn’t undermine the trust built up around it. The key takeaway? Go through the homebuying process with experts who know what to look for.
“For advisers, that often means encouraging clients to ask how their data is collected and stored, checking that everyone involved in a transaction is properly regulated, and being alert to unsolicited requests for personal details.”
FREE PROPERTY ALERTS
The FCA describes open banking as a secure and regulated method of allowing consumers to share bank-account data with trusted apps and services.
Homeowners can also use HM Land Registry’s free Property Alert service, which sends notifications when certain searches or applications are made against a registered property. Up to 10 properties can be monitored.
Owners considered particularly at risk can also consider placing a restriction on their title, preventing a sale or mortgage from being registered unless identity requirements are satisfied.
