3 weeks ago
UK Rental Fraud Could Cost £4.1bn as Fake Identities Rise
Some people in the United Kingdom try to trick landlords when they want to rent a home.
They make up fake papers, like letters pretending they have a job or earn a certain amount of money.
A company called Goodlord looked at more than one million rental applications to find out how common this is.
They found about 41 suspicious applications for every 1,000 checks they did.
This kind of trickery could cost the rental world around £4.1 billion every year.
Fake job letters went up a lot, more than 226 percent in one year.
The problem is biggest in London and in very expensive homes.
Cheaters are now making up whole pretend jobs and pretend referees instead of just one fake document.
Bad people can also use clever computer tools to make fake papers that look real.
Landlords are being told to check applications carefully and look at the whole story.
Referencing platform Goodlord estimates suspected rental fraud could expose the UK's private rented sector to £4.1 billion in annual losses.
Suspected tenancy fraud rose almost 40% in 2025 compared with 2024, with 41 suspected fraudulent applications per 1,000 references between July 2025 and June 2026.
Fake employment references surged 226.6% in 2025, while referee fraud rose 146.4% and identity manipulation climbed 140.4%.
London recorded a suspected fraud rate almost twice the national average, the highest of any UK region, followed by the West Midlands.
Properties costing more than £10,000 a month saw fraud rates approaching 18 per 1,000 applications, roughly three to six times average rental property levels.
- Who
- Referencing platform Goodlord, UK landlords and tenants, and fraudsters creating false identities
- What
- Analysis of more than one million tenant references estimates suspected rental fraud could expose the UK's private rented sector to £4.1 billion in annual losses
- Where
- United Kingdom, with London recording the highest suspected fraud rate of any UK region
- When
- Data from July 2025 to June 2026, with tenancy fraud up almost 40% in 2025 compared with 2024
- Why
- Fraudsters are moving beyond single forged documents to create entire false identities with fake employers and refinvented referees, while AI tools can produce convincing fraudulent documents
Key facts
- Estimated annual losses
- £4.1 billion (potential direct financial exposure)
- Analysis by
- Goodlord, based on more than 1 million tenant references
- Suspected fraud rate
- 41 per 1,000 references (July 2025 - June 2026)
- Peak fraud rate
- 46.6 per 1,000 references (late 2024)
- Average exposure per fraudulent tenancy
- £9,601
- Fake employment references rise (2025)
- 226.6% year-on-year
- Highest-risk region
- London, at almost twice the national average
- Luxury rentals (over £10,000/month)
- About 18 fraudulent applications per 1,000
Quotes
Nishma Parekh
Director of referencing at Goodlord
“Fraudsters are moving beyond individual forged documents and creating entire false identities involving fake employers and invented referees.”
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Chris Norris
Chief policy officer at the National Residential Landlords Association
“The figures should prompt landlords to reconsider how they assess applications. Referencing systems need to evolve alongside AI tools.”
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