Watch out for these property scams when buying or renting

Moving house can be stressful enough without having to deal with property scams. 

The most common types of scam can include conveyancing fraud, as well as coming up against fake buyers and fake landlords.

We take a closer look at what is involved, and how you can potentially avoid being a victim of property fraud depending on whether you are a homeowner or a tenant.

Jim Winters, a director of economic crime at Nationwide Building Society, said: ‘A property is one of the most expensive things we own, so it’s no surprise they are a target for fraudsters. 

‘Moving into a new home can often be stressful and with lots of paperwork we can feel rushed into getting things done. 

‘When under pressure it can be easy to miss the signs of a scam that you might normally see, leaving people at risk of losing their house deposit or money they have paid for a holiday home. 

‘That is why we would always urge anyone buying a property to confirm the bank details for their deposit directly with their solicitor, either via a letter or over the phone rather than via email as this can be intercepted. 

‘When renting a property, use a trusted lettings agency or holiday rental company and always pay by card where possible to give you more protection. If in any doubt whatsoever, contact your bank or building society.’

Homebuying scams 

The main types of property scams listed below have been identified by online estate agents Sold.co.uk.

It also outlines some steps that you can take to help you avoid being the victim of property fraud.

Friday afternoon fraud 

So-called ‘Friday afternoon fraud’ involves a criminal hacking the email of a buyer, or their conveyancer.

It is something can happen any day of the week, but committing the crime on a Friday allows the scammer to escape immediate investigation, with victims sometimes not realising they’ve been conned until the following Monday. 

The hacker contacts a buyer, posing as the solicitor, and gives them fake bank details for them to transfer their deposit into.

The way they achieve this depends on whose account they have hacked. They can send emails from the conveyancer’s real email address, or if it’s the buyer’s emails that have been hacked, they’ll make a new email account with a similar address to the real one, usually with one character changed.

This allows them to send fake communications without the buyer even noticing the change.

These scammers can take months to strike, monitoring the emails until they have a suitable opportunity to attack, according to Sold.co.uk.

They often gain access to email accounts through data leaks and use software to scan for keywords like ‘house sale’ or ‘conveyancing’.

You can put a restriction on your title, so that HM Land Registry can’t register a sale unless a solicitor or conveyancer confirms that the application was made by you

Ensuring you have a different password for everything is important to minimise the risk of being hacked. 

Keep an eye on email addresses, and watch out for small changes like a letter being removed or a full stop being added – subtle things that could easily go unnoticed.

Before transferring your whole deposit to your conveyancer, do some checks to make sure you have the legitimate bank details and you’re not sending everything to a scammer.

Send a small amount first, such as £1, and call them on their registered phone number to make sure they have received it. Only send the full deposit once this has been confirmed.

Fake buyers and sellers

Fake buyers can pretend to make an offer on your property and withdraw it right before completing, and they use the information gathered in the offer process to commit title fraud.

This is where the scammer changes the title deeds of the property into their name and can then apply for loans using your home as collateral.

If an unfortunate homeowner hasn’t spotted that their title deeds have been changed into a scammer’s name, a potential buyer could be at risk of getting scammed, too.

Most at risk of being a victim of this type of scam are homes that are empty due to the owner living abroad, properties without a mortgage, properties that are rented out, and people who have previously had their identity stolen.

Once in their name, scammers can try and sell the property without the true owner even noticing.

You can sign up to HM Land Registry property alerts, which will let you know if anyone tries to change the register of your property so you can take action.

You can also put a restriction on your title, so that HM Land Registry can’t register a sale unless a solicitor or conveyancer confirms that the application was made by you.

HM Land Registry prevented 43 fraudulent applications in 2021-2022, with an estimated value of just over £31million. This is an increase in fraudulent applications prevented since 2017-2018, when it recorded 24 cases.

Fake landlords may send a tenancy agreement to make it seem legitimate, but then after you’ve sent them a deposit and first month’s rent, they are not heard from again

Fake holiday homes

People have also fallen victim to scams when trying to buy a holiday home overseas.

Villas and apartments are advertised on sites such as Facebook and eBay using photos taken from legitimate estate agent websites, and then the scammer will ask for a deposit before you’re able to go and see the property.

In some cases, you could be convinced to pay the full amount without seeing it in person, because the scammer pressures you to act fast by telling you someone else is about to purchase it.

Do a reverse image search to see if the photos have been used elsewhere, and if they’re linked to an estate agent, contact them directly.

Don’t send any money until you’ve seen the property for yourself and have confirmed that it is real, and is actually for sale.

Rental scams

Fake landlord scams are taking advantage of rising rents, and advertising properties on sites such as Gumtree and SpareRoom that don’t exist.

The scammers rely on people needing somewhere to move into as soon as possible, and not having time to go and view the property in person.

They may even send a tenancy agreement to make it seem legitimate, but then after you’ve sent them a deposit and first month’s rent, they are not heard from again.

You may even arrive at the property and find someone else living there, who has no knowledge of it being rented out.

Never send money to a landlord without seeing the property for yourself, or otherwise confirming that the listing is legitimate and definitely available for rent.

Fake tenant competition

Landlords can try and pressure you into paying more than necessary by enlisting the help of a friend.

The landlord gets someone to attend an open viewing and appear interested in the property that you want, offering slightly more for a deposit.

If you’re interested in the property too, you might be pressured into offering an even higher deposit to secure the listing.

By law in England, deposits are capped and can only be up to five weeks rent. Make sure you don’t pay any more than is actually legal.