Ministers have urged young renters to avoid paying for a rental property before viewing it in person, following new crime data from the Home Office which revealed that individuals aged 18 to 29 represented nearly half (48%) of reported rental fraud cases last year.
The data, sourced from the National Fraud Intelligence Bureau (NFIB) for England, Wales, and Northern Ireland, also showed that the 30 to 39 age group accounted for an additional 25% of cases.
Rental fraud can take various forms, such as fake listings or scammers posing as landlords. Identifying the warning signs early on can help prevent both financial losses and frustration.
So, why are more young people falling victim to rental fraud, and what red flags should we be aware of?
What is rental fraud?
“Rental fraud is when scammers pose as landlords or letting agents to trick tenants into handing over money or personal information for properties that don’t exist or aren’t actually available,” says Ben Fleming, financial crime analyst at Ocean Finance.
Renters are easy victims because they are often in a hurry, desperate to find a place to live in a competitive housing market.
“Fraudsters prey on this urgency, and scams are rising because more people are searching online for rentals, where fake listings can easily slip through,” explains Fleming. “With demand outstripping supply, renters feel pressured to act fast – something scammers take full advantage of.”
Here are 7 red flags to look out for…
1. Excuses about deposits not being protected
“By law, deposits must be placed in a government-backed scheme,” notes Fiona Peake, personal finance writer at Ocean Finance, specialising in housing and mortgages. “If a landlord tells you it’s not necessary, they’re either breaking the law or scamming you.”
2. Fake letting agents
“Scammers will set up websites or social media profiles that look professional but aren’t linked to a real agency,” warns Peake. “Check credentials on official registers like The Property Ombudsman or ARLA (Association Of Residential Letting Agents).”
3. No in-person viewings
“Wherever possible tenants should not make any payments until they have seen the property in person and had the opportunity to meet the landlord or letting agent,” says Chris Norris, director of campaigns and policy at the National Residential Landlords Association (NRLA).
Peake agrees and adds: “Scammers rely on excuses like being abroad to avoid showing you the property.”
4. Requests for cash
“When paying the deposit, tenants should do so with a credit card or via a direct debit to gain some protection from the banks – never hand over cash,” advises Norris.
5. High-pressure tactics
“If you’re being pushed to send money immediately because there’s ‘huge interest’, step back,” recommends Peake. “Genuine landlords won’t rush you into transferring cash without proper checks.”
6. The price is too good to be true
“If the rent is much lower than similar properties in the area, that’s a red flag,” highlights Peake. “Scammers use cheap prices to lure victims in quickly.”
7. No paperwork
“If you’re not given a tenancy agreement, or the landlord dodges questions about legal paperwork, walk away,” advises Peake. “A legitimate landlord will provide an official tenancy agreement, deposit protection details, and proof of ownership. If they avoid this, be suspicious.”
How can you check a rental is genuine?
“Look up the property online,” recommends Fleming. “If the same photos appear under different locations or listings, it’s a scam.
“If dealing with an agent, check they’re a member of an official letting body. If renting directly from a landlord, confirm they own the property via the Land Registry.”
What should you do if you have already been scammed?
“Contact your bank straight away and report it to Action Fraud,” urges Fleming. “You can also report fake listings to the website they appeared on to help shut down fraudulent activity.
“If you need help recovering lost money, Citizens Advice can guide you on your options.”
