More than three-quarters of landlords believe tenant fraud has become increasingly common according to research published following a BBC Panorama investigation into criminals targeting rental properties.
The LegalforLandlords survey of 1,000 UK landlords found 77% thought fraud had increased during the past three years. This included 39% who considered it significantly more common and 38% who reported a more modest increase.
Concern was similarly widespread, with 41% very worried about tenant fraud in the current market and a further 37% somewhat concerned. These figures reflect landlords’ perceptions rather than recorded crime statistics.
One in 10 respondents said they had personally experienced fraud. Of these, 34% identified deliberate rent non-payment following misleading application information as their most significant incident.
CRIMINAL ACTIVITY
Almost one in five affected landlords said their property had been used for criminal activity without their knowledge, while 10% encountered unauthorised rent-to-rent arrangements or subletting. False employment or income details and undisclosed occupants each accounted for 9%.
The financial consequences were substantial in some cases. Almost a quarter of victims lost at least £5,000, while 22% reported losses ranging from £2,500 to £4,999.
Nearly one-third absorbed the cost without recovering anything, 22% used formal possession proceedings and 12% said their case remained unresolved.
The findings follow the broadcast of Panorama: There’s a Gangster in My Flat on BBC One on 20 July. The programme examined cases in which criminals allegedly used false identities and references to obtain properties that were subsequently used for activities including drug production and prostitution.
BEYOND THE HEADLINES
Sim Sekhon (main picture, inset), Group Chief Executive Officer at LegalforLandlords, says: “The recent Panorama programme has shone a light on some of the most serious examples of tenancy fraud, but our research suggests the wider concern among landlords extends far beyond the cases that make the headlines.
“Most tenants are genuine, but the financial impact when fraud does occur can be significant. Whether it’s misleading affordability information, undisclosed occupants, fraudulent identities or organised criminal activity, landlords often don’t discover there’s a problem until after the tenancy has begun, when resolving the issue becomes considerably more expensive and time-consuming.
“The most effective defence is prevention. Thorough tenant referencing, robust identity and affordability checks, and the right legal protections can dramatically reduce the likelihood of fraud succeeding in the first place.”
Among landlords who had encountered fraud, 69% experienced one incident over the past five years, while almost one-third reported being targeted more than once.
