New data raises concerns about escalating fraud in the property sector, according to the National Association of Property Buyers (NAPB). The warning comes as recent figures indicate a substantial increase in instances of fraud, particularly in the areas of mortgage and rental fraud.
Data from Apex Bridging shows a 32.8% increase in mortgage fraud in England and Wales over the past year. This type of fraud typically involves criminals attempting to extract money from banks or private lenders during the lending process. It now ranks as the second-highest increase among all types of fraud in the banking and credit industry.
Jonathan Rolande from the NAPB said, “Mortgage fraud, both failed and successful attempts, have increased dramatically. While it forms a small percentage of total cases, the very large amounts of money involved make it a worrying statistic.”
Rental fraud, where potential tenants are misled into paying an upfront fee for a non-existent property, is also on the rise. The data shows a 5.1% increase in such cases over the last year, now accounting for 11.2% of all advance fee payment frauds.
Rolande commented further on the situation: “We have been warning of an increase in fraud for some time. This is due to a combination of desperation from tenants struggling to find accommodation and the fact that more of our lives are online, reducing personal interactions with agents and landlords. Many cases likely go unreported as victims doubt there is any chance of recovery or conviction.”
The NAPB suggests that the current housing shortage is fuelling a sense of urgency among buyers and renters, making them more susceptible to fraudulent schemes. Rolande added, “The real figures are bound to be even higher. Banks have put in good systems to alert customers sending money to possible wrongdoing, but consumers are still very much at risk.”
