Analysis of over one million tenant references indicates that fraudulent tenancy applications could lead to direct financial losses of up to £4.1 billion each year for the UK's private rented sector.
Research by Goodlord found that 41 applications per 1,000 references were flagged for suspected fraud between July 2025 and June 2026. This figure is below a peak recorded in late 2024 but remains above historic levels.
The company estimated the average direct financial exposure per fraudulent tenancy at £9,601. This figure includes costs such as rent arrears, legal and court fees, bailiff fees, void periods, and property damage.
Confirmed fraud cases showed significant regional variations, with London experiencing a rate almost twice the national average. The West Midlands had the second-highest confirmed fraud rate, followed by the North West and applications from overseas.
Nishma Parekh, director of referencing at Goodlord, stated that while rental fraud is not new, its sophistication is increasing. Chris Norris, chief policy officer at the National Residential Landlords Association, advised landlords to ensure their referencing checks evolve to counter new technological developments in fraud.