More than £4.2 million was lost to this type of fraud in 2023, according to the fraud and cybercrime reporting centre for England, Wales and Northern Ireland.
This makes it one of the five fraud types most reported by people aged between 11 and 29, with average losses amounting to £1,720 per victim.
And it's not just younger people who are at risk. As of 2021, there were an estimated 5.6 million privately rented UK homes. That means millions of people who rely on the private sector for housing could also be at risk from this type of scam.
Read on to find out more about this type of scam and the warning signs to avoid.
1. You need to pay before viewing
If you're asked to make a payment before viewing a rental home in person, run a mile. No money should change hands and no contracts should be signed until you've seen it in person.
You may be told it's to 'manage demand' or prevent 'timewasters', or that it's refundable if you decide not to let the property, but in reality, it's a surefire sign of a scam.
2. Photos are copied from other listings
3. The price is too good to be true
As with any scam, rental fraudsters often try to lure people in by creating listings with eyecatching below-market rents.
With a shortage of rental housing in the UK, average rents rose by 9% in the 12 months to February 2024 (Office for National Statistics).
If you find yourself thinking a property looks like a bargain, you should be suspicious. In the context of rising rents, it's not likely to be genuine.
That's why it's so important to do your research by looking at lots of listings for the area and type of home you hope to rent. Doing this will give you a feel for what the typical market rates are.
4. The payee name doesn't match
Even if you manage to view a property, that doesn't mean the deal is genuine. You still need to be on your guard, as scammers can gain access to properties they don't own in order to conduct bogus viewings.
If the property is advertised as being let through a local agency, then a call or visit to the agency's registered office can confirm whether it's legit.
undefinedsource https://www.which.co.uk/news/article/4-ways-to-spot-a-rental-scam-a206R0v7tjRF