Landlords saw a big surge in tenancy fraud last year

Last year saw landlords struggle with a huge rise in tenancy fraud, particularly in London, research reveals.

The findings from Homeppl, a tenant referencing platform, found that its technology helped clients avoid £16.9 million in losses due to fraud.

It says that for every £1 spent on the firm’s technology, clients saved £22.60.

The biggest issue facing landlords is that 94% of fraud cases involved forged documents – doctored bank statements being the most common.

Most tenancy frauds are in London

The data reveals that 60% of all flagged fraud cases originated in London, with west London experiencing a substantial increase.

Homeppl says that the west London accounted for 40% of all London-based fraud cases.

Also, the average fraudster targeted properties with an annual rental value of £37,598, claiming falsified incomes of £85,945.

Challenges faced by the private rented sector

The 2024 State of Lettings Fraud report underscores the challenges faced by the private rented sector in 2024, with private rents increasing by 8.7% nationwide and 10.4% in London.

These rising costs have intensified financial pressure on renters, fuelling a surge in fraudulent activity.

Homeppl says that the average cost of fraud per tenancy, including eviction and legal fees, is around £64,000.

The firm’s fraud detection technology, including its Fraud Finder tool, utilises font analysis, metadata examination and behavioural analysis to identify and prevent fraudulent applications.