Property fraud costs homeowners an average of £100,000

Over the past 14 years, property fraud in the UK has totalled more than £73 million. Read on to make sure you won’t fall foul of these common scams...

You might not know it, but if you're a homeowner in England or Wales, details of the properties you own are published online, making you potential prey for a band of unscrupulous property fraudsters.

According to research by ABC Finance, the UK Land Registry has received twice as many property fraud claims as they've prevented since 2009.

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In the last 14 years, there have been 678 property fraud claims made to the Land Registry, with the average cost of property scams valued at £107,669 per homeowner and the total overall pay-out amounting to a staggering £73.3 million.

As it stands, property fraud accounts for 71% of all fraud within UK local authorities. Council tax fraud has the second-highest rate but lags well behind, amounting to just 9% of cases. Here's what you need to be aware of...

Mortgage fraud 

One of the most common types of property fraud occurs when a fraudster takes out a mortgage using the victim's identity.

Initially, the fraudster will make repayments from a dummy account they have set up, before withdrawing all the money. Once a mortgage repayment is refused, the property deed holder, whose identity has been stolen, is then left liable for the debts incurred.

The properties that prove most attractive to fraudsters are rental properties, vacant properties, homes where the owner lives abroad and high-value or mortgage-free properties.

Homes that aren't occupied by the owner and only have one contact address listed on the Land Registry are also a target, as they're less likely to be made aware of any unusual activity.

Other common property scams

There are other types of property fraud out there that you should keep an eye out for too. For example, a fraudster could pose as a homeowner selling a property that doesn't belong to them before pocketing the money.

Remember, it pays to always check deeds and to speak to the current owner before anything is signed or any money changes hands.

Homebuyers should also be aware of what's known of as ‘Friday Afternoon Fraud’. As most completions happen on a Friday afternoon, this scam occurs when hackers take over a solicitor’s email account and send fake bank details for the money of the sale to be transferred to.

Alarm bells should ring if your solicitor changes bank details at the last minute, in which case you should call up the office or visit them in person before transferring anything. 

Varify property deeds before handing over any money. Image: Fabio Balbi/Shutterstock

Protecting your property

While all this may sound scary, there are ways of preventing yourself from falling victim to scammers.

The HomeOwners Alliance suggests using the free Land Registry Property Alert Service. This service sends you an email alert if there's any activity on a property registered to you. But be aware that you will still need to get in touch with the Land Registry if you notice anything suspicious.

You can also apply for a restriction that requires that your identity be confirmed by a solicitor or conveyancer before any sale or mortgage goes through. If you live in the property, there’s a charge of £40. If you own it privately but don't reside there, it’s a free service.

What to do if you're a victim of fraud

Prevention is obviously key, but if you have fallen victim to one of these scams, the first thing you should do is alert HM Land Registry by calling their Property Fraud Line on 0300 006 7030. The line is open from 8.30am to 5pm Monday to Friday.

READ MORE: Rogue property agent slapped with £26k fine for shocking scam

Photo: Rawpixel.com/Shutterstock