Young tenants are increasingly at risk of rental fraud, research suggests.
New Government data shows young people aged between 18 and 39 account for almost three quarters of cases of rental fraud.
That is according to National Fraud Intelligence Bureau (NFIB) data released by the Home Office.
Rental fraudsters typically target their victims by offering access to properties that do not exist, or which are not theirs to rent, often using fake details and photos, and usually offering prices at well below market rate. To secure the property or even arrange a viewing, they will usually demand a deposit or the first month’s rent, and many individuals desperate to find a home will make the upfront payment to avoid missing out.
According to the NFIB data, the resulting fraud losses amounted to nearly £9m across around 5,000 reported cases last year. The 18 to 29 age group accounted for 48% of all reported rental fraud cases in England, Wales, and Northern Ireland last year, with the 30 to 39 age group accounting for 25%.
With many students and young workers using the Spring months to search for new rented accommodation, Home Office ministers are urging renters to avoid rushing into a quick decision or paying over any money for a property before they have viewed it in person.
And with rental fraud often taking place through properties advertised on social media websites, the government is also renewing its calls for tech companies to go further and faster to tackle fraud on their platforms ahead of convening the next Joint Fraud Taskforce meeting later this month.
Fraud Minister Lord Hanson said: “Rental fraud is an utterly shameful crime, and this new data should serve as a stark reminder that anyone can be a victim. It doesn’t matter how streetwise and tech-savvy you are, fraudsters will get to anyone who doesn’t stop and think before handing over their money.
“That’s why I am determined to root out fraud from our society, crack down on the callous criminals behind it, and ensure that stronger protections are put in place by the tech companies on whose platforms much of this fraud takes place.
“The Home Office will be making progress on all of those issues through the next phase of our Stop! Think Fraud campaign, and the new, expanded fraud strategy we are developing this year as part of this Government’s Plan for Change.”
The new figures are published on the same day as the National Cyber Security Centre (NCSC) – part of GCHQ – launches the second phase of a nationwide campaign encouraging individuals and small businesses to set-up 2-step verification (2SV) on their most important accounts.
2SV adds an extra layer of security, making it much harder for attackers to access your accounts even if your password is compromised.
Backing the campaign, Nathan Emerson, chief executive of Propertymark, said: “Propertymark supports the campaign to reduce fraud in the rented sector, so it is disappointing to see these figures as ultimately, no one wants to see fraudulent activity particularly targeting young people.
“Importantly, these figures highlight the need for greater action from government to fully regulate property agents and where regulation already exists such as for letting agents in Scotland and Wales, the need for greater enforcement action.
“Extending and strengthening regulatory requirements for all letting agents will not only provide greater protection for consumers as agents would need a licence to operate but will arm enforcement bodies with the information they need to filter out rogue operators.
“Furthermore, Governments should be doing more to promote professionalism in the sector, and we would urge those who are looking to buy, sell or rent a home to use a Propertymark Protected agency as those who voluntarily join Propertymark are required to operate in a transparent way, providing services that offer true protection and peace of mind.”
This article is taken from Landlord Today