A new report by Goodlord, titled “Tenancy fraud is no joke,” has highlighted a significant increase in tenancy fraud, partly driven by advancements in AI. The report, which reviewed over one million completed references between April 2023 and July 2026, found that AI intelligence has simplified the creation of convincing fake payslips, bank statements, and employment references.
Oli Sherlock, managing director of insurance at Goodlord, stated that fraudsters are increasingly creating believable identities that can bypass traditional referencing checks. The report estimates that fraudulent tenancy applications could expose the UK's private rented sector to annual financial losses of up to £4.1 billion.
Goodlord's findings indicate that referee-flagged tenancy fraud has risen by 78% year-on-year, with current fraud rates remaining around 40% higher than the Q2 2023 baseline. High-value properties are particularly affected by sophisticated fraud, estimated to occur in one out of every fifty applications.
Regionally, Greater London consistently records the highest fraud rates, approximately double the national average. The West Midlands and North West follow, while Scotland, Wales, the North East, and the South West show the lowest rates.