More than a third of letting agents have encountered attempted financial fraud in the past year, while many remain uncertain about their ability to detect suspicious client money transactions. New research from The Letting Partnership found that 35% of agents had experienced or identified an attempted scam linked to their lettings business. Meanwhile, 36% lacked complete confidence in their ability to identify a fraudulent or suspicious transaction before transferring client funds.
AI fraud emerges as growing threat
The survey of 560 letting agents in England found that 54% believe their exposure to financial fraud has increased over three years. Just 8% believe the risk has fallen.
Phishing and impersonation of landlords or tenants topped the list of reported threats, with 26% of respondents encountering such activity. Suspicious third-party rent payments followed at 21%. Meanwhile, 18% reported encountering AI-generated fraud, impersonation or deepfake scams.
Although traditional scams remain more prevalent, agents identified AI-enabled fraud as their biggest future financial security concern. Some 29% viewed AI-related scams as the greatest threat, ahead of tenant and payment fraud at 27%. Money laundering and suspicious funds followed at 12%.
Client money controls under scrutiny
The research also highlights concerns about agents' ability to protect landlord and tenant funds. While 64% expressed complete confidence in their existing fraud detection procedures, the remaining 36% did not.
The Letting Partnership argues that stronger client accounting controls and payment verification procedures should form part of future regulation. The findings come as the government considers greater oversight of property agents, including professional qualifications and licensing.
'A real concern' for the sector
Chris Mason, chief operating officer at The Letting Partnership, said: "The fact that more than a third of letting agents aren't completely confident in their ability to identify a suspicious client money transaction before funds are transferred should be a real concern, particularly when over a third have encountered attempted financial fraud in the last year alone."
He warned that AI was making financial scams increasingly sophisticated. "The emergence of AI-enabled fraud is making the threat increasingly sophisticated, and it's telling that the industry already considers it the greatest financial security risk moving forward," he said.
Mason also called for financial controls to feature prominently in any regulatory overhaul. "Licensing and qualifications are important, but so too are the client accounting systems, verification procedures and financial controls that protect landlord and tenant money on a daily basis."
Research platform FindOutNow surveyed 560 letting agents in England on 5 October 2026 on behalf of The Letting Partnership.
