A recent investigation by a property website has revealed that landlords are experiencing a significant surge in fraudulent tenancy applications, raising concerns about the reliability of tenants in terms of rent payment. The investigation showed that fraudulent tenancy applications have increased by 153%, with fraudsters using fake documents and paperwork to get round the standard identity checks which are legally required to rent a property in the UK. This rapid rise in fraud in the sector has implications for both landlords and tenants.

Right to Rent Checks

The increase in tenancy fraud comes at a challenging time for the private rented sector. Demand for rented property has never been higher, and available housing stock is dwindling. Landlords are legally required to make sure that the person they are renting to is in the UK legally, by looking at their passport and any visa restrictions which they have. Tenant referencing is a more detailed level of checking which typically also involves checks into credit history, employment, and references from former landlords. This more detailed vetting is a crucial tool for landlords to assess the suitability of prospective tenants. However, the rise in fraudulent applications has prompted some landlords to start using even more stringent measures, such as requesting additional information like photos, CVs, and character references, to make more informed decisions about the people they are dealing with.

Landlords have to stay within the law with their checks on prospective tenants and are not allowed to discriminate against people on the basis of a protected characteristic such as age, sex or race. Often, it’s advisable to use the services of a letting agent who will keep you on the right side of the law.

Implications for Tenants

This rise in fraudulent tenancy applications not only puts landlords at financial risk but also creates additional challenges anyone who is thinking about renting from a private landlord. As landlords become more cautious in their referencing processes, the competition for rental properties intensifies. Housing charities have raised concerns that these changes will potentially disadvantage tenants who rely on housing benefits.

If you are applying to rent a property, be prepared for a higher level of checking that any which you might have gone through previously. Landlords and agencies representing them need to make sure that the people they are dealing with are genuine tenants and not fraudsters with no intention of ever paying the rent.

Get prepared before visiting the letting agent or phoning the tenant. You will be asked to provide your key identity documents such as passport or driving licence, so make sure you know where to find them. Speak to your current landlord and ask whether they would be happy to give you a reference and get their name and contact details to pass on. Look at your credit report online to make sure there is nothing in there which could raise red flags about your ability to pay your rent each month. Think about asking a trusted friend or family member whether they would be prepared to act as a guarantor to strengthen your application even further.