Tenancy fraud is costing landlords an estimated £266m a month, as 70% of those who fall victim to fraud report being unable to retrieve their losses, according to research by LegalforLandlords.

The survey found that 5% of UK landlords have been a victim of tenancy fraud, which equates to over 275,000 landlords.

Sim Sekhon, Group CEO at LegalforLandlords, said: “Tenancy fraud is a growing and increasingly complex issue across the private rental sector, and these figures highlight just how significant the financial impact has become for landlords.

“The reality is that tenant fraud is now as much a technology challenge as it is a procedural one. Traditional document-based referencing - such as payslips or bank statements - is becoming less reliable, as AI tools can now generate highly convincing fraudulent documents in a matter of minutes.

“At the same time, wider market pressures are increasing the risk. With rents rising, affordability tightening and possession timelines extending, the cost of getting tenant selection wrong is higher than ever. In this environment, having the right agreements, documentation and processes in place is critical, not only to prevent fraud, but to ensure landlords are in the strongest possible legal position should issues arise.”

At the current average monthly rent value of £1,379, this suggests that tenancy fraud is costing British landlords an estimated £379.8m per month and with 70% of unable to retrieve any of the financial losses that resulted, it means that £265.8m is never seen again, which is equivalent to £3.2bn a year.