Property fraud risk is higher in some UK regions

Property fraud risk is higher in some UK regions

0:01 AM, 7th December 2023, About A year ago 2

Text Size

A new study has revealed that some regions of the UK may be more prone to property fraud than others, due to the higher proportion of mortgage-free properties in those areas.

The study, conducted by client compliance platform Thirdfort, analysed data from a survey of 2,054 adults and found that the East Midlands, North East, North West and Scotland had the highest percentage of outright homeowners in the UK, ranging from 32.9% to 36.3%.

Property fraudsters will use various methods to obtain fake IDs, change their name to a property owner’s name, and illegally obtain genuine documents to open a bank account.

‘Properties most at risk of property fraud’

Harriet Holmes, AML service manager at Thirdfort, said: “Mortgage-free properties are one of the types of properties most at risk of property fraud because there are often fewer checks and hoops to jump through, so criminals see them as easier targets.

“As a result, conveyancers and estate agents need to be especially vigilant in those regions of the country where more people own homes outright.”

‘The risk around identifying fraud’

She added: “Property firms should regularly update staff training on the risk around identifying fraud and the red flags of which they should be aware, especially in those areas where more people are likely to own their homes outright.

“Alongside such training, digital verification tools can help reduce the burden on staff when verifying ID documents.”

Financial and emotional distress to the victims

Property fraud is a serious crime that can cause significant financial and emotional distress to the victims, who may lose their homes or face legal disputes.

The Land Registry reported that it prevented 279 fraudulent applications worth £133.4 million in 2019-20.


Share This Article


Comments

Reluctant Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:03 AM, 7th December 2023, About A year ago

get onto the Land Registry and ask that they put an additional sentence into the deeds so that solicitors etc have to double check ID etc at the point of purchase.

Also you can ask the LR to put an auto notifcation on the deeds so if anyone requests a copy it sends you an email to alert you.

Kizzie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

20:06 PM, 9th December 2023, About A year ago

As noted on another thread, register the property on the free HMLR property alert service.
In addition a restriction can be placed on the title for a fee.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More