The crime grew 40% in 2025 as AI makes it easier to forge documents
Tenancy fraud could be costing the UK’s private rented sector up to £4.1 billion in losses a year, according to new analysis by Goodlord.
Analysing more than a million completed references between April 2023-July 2026, Goodlord found that suspected tenancy fraud rose 40% in 2025 compared to the previous year, with London the hardest hit and more expensive homes particularly vulnerable.
It found that AI was increasingly being used to forge documents such as payslips and references, as well as to create entire false identities.
In the last year, 41 tenancy applications per 1,000 references were flagged for suspected fraud between July 2025 and June 2026, down slightly from a peak of 46.6 per 1,000 references in late 2024, but still well above historic levels.
Estimated costs
The analysis showed that fraud rates were more than twice the national average in London, with the next highest rate seen in the West Midlands, followed by the North West.
The research also showed that fraudsters target more expensive properties, with fraud rates of nearly 18 per 1,000 applications for properties renting for more than £10,000 a month – a figure that is three to six times higher than the rate of confirmed fraud seen across average rental properties.
Fake employment references were the fastest-growing type of fraud in 2025, up 226.6% year-on-year, while referee fraud (+146.4%) and identity manipulation (+140.4%) also increased substantially.
Goodlord combined its observed suspected fraud rate with publicly available estimates for legal costs, court fees, bailiff fees, rent arrears, void periods and property damage to estimate the average direct financial exposure associated with a fraudulent tenancy at £9,601 per case.
Nishma Parekh, director of referencing at Goodlord, said: “Behind these numbers are real people and real money: landlords left out of pocket, agents’ time wasted, and honest tenants competing against fraudulent applicants for homes.
“Rental fraud isn’t new or hypothetical – we’ve seen fraudsters operating first-hand. But what’s changing is how sophisticated fraud has become. Fraudsters are no longer relying on a single forged payslip – they’re building entire fake identities, combined with false employers and invented referees.”
Chris Norris, chief policy officer at the National Residential Landlords Association, said: “This report should act as a wake-up call for landlords across the sector. The market is now falling prey to increasingly sophisticated types of fraud and landlords need to take every step to protect themselves from these risks.”
