Now is the time when many new students are trying to find somewhere to live. This may be in short supply as much of the available accommodation will have been already taken up by existing students earlier in the year.
A perfect opportunity for the scammer. Action Fraud is reporting a big increase in the bogus property fraud.
What happens is that the scammer will advertise a completely false property – maybe on one of the big advertising sites (they can’t pick up all the fake properties).
- The property could be a real property which is already let
- or maybe a property which is not available for let at all
- Or a property which does not actually exist, at least in the location where it is advertised
The scammer will then tell interested students that there is a lot of demand for it and ask for a big deposit up front saying that it will go off the market if they don’t act fast.
Having collected a number of fees, the scammer will then fade away leaving the student bereft …
How to avoid being scammed:
- Only use reputable letting companies or landlords recommended by your student accommodation office
- Do some online research such as using Google maps to check the property does exist.
- Always view the property in person before paying over any money.
Mind you even viewing the property is not a complete protection as it is not unknown for scammers to get hold of the keys of empty properties.
Which is why the only real protection is to use a reputable company, particularly those recommended by your accommodation office.
If this is not possible (because it has all been let) be very wary about handing over money for properties you have not seen. Genuine landlords are more interested in getting good tenants than taking money from you quickly and will focus on getting references and background checks.
If you are worried have a word with your accommodation office who should be able to advise you.
You will also find details of other scams on my Landlord Law site here.
If you have been scammed call Action Fraud on 0300 123 2040 or use their online reporting tool.
Check landlord ID tallies with who owns the property on Land Registry for three quid;
https://www.gov.uk/search-property-information-land-registry
And Tessa this is an ideal case in point in support of the Renter’s rights Bill which proposes that prospective tenants have access to the rogue landlord database.
This was proposed by me at last August’s consultation meeting at the Home Office on the national database plans detailed in the then Housing Bill but didn’t get adopted.
Also tenants should always and I mean always, check ownership of property with land registry first. As an enforcement officer myself I do it for every property that comes by way of complaint and in a huge proportion the person that the tenant thinks is the owner actually isn’t.
It worth pointing out maybe that a different owner does not necessarily mean it’s a scammer as it could be a genuine rent to rent situation. But at least you will be able to check this out and make sure.
Yes this is true but it gives a prospective tenant the advantage of asking the agent who the landlord is or the if the person they are dealing with is the landlord, why they have a different name.
Also the land registry will often have a different adress for the landlord who could be contacted to ask if the letting is above board.
In my game we dont just stop at ownership. The name of the owner gets run thorugh a variety of resources, including company director check to see if they have bankrupted companies, internal resources such as counicl tax records and HB Fraud, as well as that old stalwart Google.
Also worth Googling the contacts phone number too, see where it leads.
A suspicious lot us TROs
Hello Ben,
I’ve never understood why councils don’t carry out your sensible basic checks *before* handing over benefit money.
Doing it afterwards once things have gone awry smacks of stable door closing after the horse has bolted.
I don’t buy the lack of resources chestnut either as 10 minutes checking beforehand has got to be far more resource efficient than dealing with the inevitable car crashes afterwards.
Can you enlighten me?
It’s a reasonable question. Although the article is a discussion on students so housing benefit doesn’t apply. But I have come across cases where a similar scenario occurs with an HB claimant and the scammer pockets the rent.
My opinion (and I don’t know if this is the HB approach) is that it’s not up to HB to establish whether the landlord is NOT a scammer. I know this sounds ridiculous but bear with me.
Benefits are (or at least should be) about ensuring an entitled claimant receives their entitlement. Housing benefit is not rent but there is the understanding between the state and individual that the latter will convert it to rent (ok this is a nuanced view not popularly held!). Indeed the money is only payable if it’s a demonstrable cost they need to meet. Hence they stop paying it because the claimant has, not so much because the claimant is being a wrong ‘un!
So HB will usually go no further than check it is a genuine renting situation as the tenant sees it, or at least on the face of it, and also that the claimant is physically resident at the property.
Of course there may come a point where they check if a landlord has been involved in HB fraud but quite what the consequences or actions they take I’m not sure.
So HB are not housing lawyers, consumer rights experts. They don’t have the resources to act in this capacity and frankly it’s not their remit (a relief in my eyes – there’d be huge conflicts of interest)
Imagine how long it would take your average HB office to investigate some of the crazy cases we come across. It could be seriously obstructive to a genuine case where suspicion was held.
Furthermore if you have a scammer operating who poses as a landlord and let’s say there is an actual property involved (again a scenario I’ve encountered), HB claimant tenant moves in, landlord turns up months down the line to find someone eating his porridge….this is a criminal and civil matter between the landlord/scammer, tenant/scammer (and there is also a landlord/unauthorised tenant matter – recently discussed in a Letting Agent Today article and comments which is worth a read) I doubt that the landlord has a claim against the tenant,except to evict using the relevant process. But the point is where does the tenant stand in this? They haven’t committed an offence here. What happens between HB/tenant n this scenario.
I’m just trying to make the point that part of the function of HB is to prevent homelessness.
So I may not have articulated my point very successfully here, I admit! I would understand any accusations of talking drivel and I have broad shoulders!
Basically I think the onus is on the tenant at present to check the integrity of their prospective landlords. Unfortunately it’s a power relationship, and the tenant may not be at leisure to do this.
Another reason I feel that more effective and targeted regulation is so desperately needed in the PRS.
OK so my answer is over-proportionate to the question. Just got me thinking that’s all! ?
IVA and bankruptcy register (free);
https://www.insolvencydirect.bis.gov.uk/eiir/
CCJ register (four quid);
http://www.trustonline.org.uk/search-others
Speaking of rogue landlord databases, has anyone ever made use of the interactive national database on EHN. (I think its Environmental Health News and covers England and Wales) ?
Any opinions on this “database”? I don’t know if it’s updated
HB I’ll reply later, its a big reply
@Jon the EHN database just isnt very good at the moment. Maybve it will get better but so far there just inst much on it.
Cheers Ben,
It is a big reply.
I’m sure it would be very easy for me to challenge your reply if I wanted to do any petty point scoring.
Not going to do any of that nonsense, just genuinely want to try and understand why councils don’t do such easy simple checks.
Thanks Ben I thought there was very little on it shame really good idea.