The number of fraudulent applications from tenants looking to secure a rental property rose by 140% last year, analysis from Goodlord has revealed.
In 2022, 1.2 cases of fraud were picked up for every 1,000 applications; in 2023, this rose to 2.9 cases in every 1,000.
The most common form of fraud recorded by Goodlord was payslip fraud – where tenants either boosted the amount of income or edited its source, such as changing a company name.
Methods used ranged from rudimentary editing through to the use of sophisticated photoshopping tools.
Other forms of fraud over the past year included providing false passport images, doctoring bank statements, offering fake references, and claiming to work for companies that did not exist.
In 2023, payslip fraud accounted for 58% of all cases detected and caught by Goodlord.
Despite the majority of applications being above board, the rise in fraud over the past year highlighted the need for robust safeguards against rental market manipulation.
Nishma Parekh, head of referencing at Goodlord, said: “Fraud can come in many forms. In some instances, tenants who are desperate to secure a property think bumping up their salary will help seal the deal.
“Given the current pressures on the housing market, it’s understandable as to why we’re seeing a rise in this type of fraud.
“However, this is inadvisable as you could end up on the National Fraud Database, impacting future job prospects and other life events such as securing loans.
“And, of course, there is also a much darker side to fraud, such as criminals using false IDs to secure properties, or people who are looking to sign tenancies using forged documents.”
Parekh added: “As the tools used to commit fraud grow more sophisticated and personal information is increasingly digitised, it’s vital that landlords and agents can access the cutting-edge technology designed to fight back – ones that can protect them and ensure they can let their properties out in good faith.
“Here at Goodlord, through integrations with payroll providers, HMRC, the fraud database and Open Banking, skilled teams and tech solutions are helping tackle fraud, making it increasingly hard for bad actors to game the system.”
