Referee-flagged tenancy fraud increased by 78% year-on-year between 2024 and 2025, while the overall number of confirmed fraud cases rose by 49.4% over the same period.
The data from Goodlord showed that employment fraud is growing faster than any other category, with fake employment references increasing by 226.6% between 2024 and 2025.
Furthermore, cases involving identity manipulation rose by 140.4%.
The highest fraud rates were recorded in rental bands above £8,001 per month. It was highest in monthly rentals above £10,000 per month at 17.9 per 1,000 applicants. Fraud levels were lowest among properties with rents between £0 and £500 per month.
Although fraud remains a prominent challenge, recent data showed rates have fallen from earlier highs. The average fraud rate in Q2 2026 was 2.98 per 1,000 applications, compared with a peak of 5.51 in Q4 2024.
Regional analysis from April 2023 to July 2026 found that London recorded the highest fraud rate at 6.7 cases per 1,000 applications.
This was followed by the West Midlands at 3.5 and the North West at 3.4.
Landlord exposure nears £10,000
The average direct financial exposure linked to a single fraudulent tenancy was estimated at £9,601. This took into account legal fees, court and bailiff costs, rent arrears, void periods and property damage.
Data from tenant verification platform Trusted Sources showed robust detection rates across multiple fraud categories.
More than 97% of fake employment references were detected, while it was 98% for forged payslips and 83% for referee fraud cases, plus more than 90% of fake document fraud.
Notably, Goodlord pointed out that fraudulent applicants are consistently less likely to connect to the Trusted Sources verification system than genuine renters. However, this should not be taken as guarantee of fraud.
Goodlord emphasised that robust verification measures were increasingly important for landlords seeking to avoid costly fraudulent tenancies.
Strong letting agency processes, fraud detection technology and rent protection insurance were all recommended means of layering defences against tenancy fraud.