As a result, young people are increasingly being targeted by rental fraud in the UK, making up three-in-four incidents reported. The National Fraud Intelligence Bureau (NFIB) recently released data that paints a scary picture. This is compounded by the challenge of the high cost of living, particularly in cities like London. Last year almost £9 million disappeared owing to an estimated 5,000 instances of rental fraud. This especially worrisome statistic should cause any future tenant to be deeply concerned.
Overwhelmed with despair As rents keep rising in London, young people are regularly put in very frightening positions. They leave millions of people no choice but to shell out close to £1,000 for a shoebox. This would involve renting a studio apartment or even just a bedroom in a two-, three- or four-bedroom apartment. As a consequence, the rental market has become a cutthroat Hunger Games level competition. Today, a separate living room is a luxury — no longer the standard amenity in multi-family dwellings.
The Growing Threat of Rental Fraud
The NFIB’s data paints a frightening picture of the growing role of rental fraud in victimizing the next generation. Young people need to continue to be alert and proactive when looking for rental accommodations. With hundreds of new tenants pushed under emotional and financial duress, fraudsters are exploiting their naivete.
The schemes frequently include fraudulent listings for properties that are non-existent or misrepresented. Fraudsters are constantly posting fake rental listings on websites and online marketplaces. This type of fraud preys on well-meaning but unwary renters, duping them out of thousands of dollars.
The government of the UK is taking this challenge seriously. They have provided useful resources and up-to-date information about the rental fraud crisis on their official website. We urge young people to check out these resources before spending money on the rental market.
Essential Precautions for Tenants
Given the increasing prevalence of rental scams, it’s important that prospective renters are vigilant. The NFIB recommends that people check the authenticity of rental listings as thoroughly as possible.
“Always ask to see proof of ownership, or the landlord’s right to let, and ensure a tenancy agreement is in place before paying deposits or holding fees.” – Gumtree
This guidance acts as a guide for young renters to follow, encouraging them to make efforts to safeguard themselves against fraud. Doing the proper diligence—conducting background research on landlords and checking references—can save tenants from future nightmares.
Government Initiatives and Public Awareness
The UK government has been proactive in distributing resources to help educate young people on recognizing rental fraud. These resources explain many types of housing scams and offer helpful tips for tenants dealing with the competitive rental market.
With more Americans living in rental housing than ever before, the federal government is focused on ensuring young people are aware of the dangers of rental fraud. The NFIB’s member alerts serve as a reminder and a call for constant education and vigilance to this population.