Common Home-Buying and Rental Scams - How to Spot and Avoid Them

Buying or renting a home is a major financial milestone, but unfortunately, scammers prey on homebuyers, renters, and investors. Whether you’re saving for a deposit, applying for a mortgage, or searching for a rental, fraudsters are ready to take advantage.

The good news? With the right knowledge, you can identify red flags and protect your money. This guide covers the most common home-buying, financial, and rental scams in the UK and how to avoid them.

 

Home-Buying Scams

 

1. Fake Property Listings

Scammers create fraudulent property listings using real photos stolen from estate agents’ websites to trick buyers into paying a fake deposit. These scams often appear on social media, classified ads, or even property portals.

Red Flags:

• The price seems too good to be true.

• The seller pushes for a deposit before viewing the property.

• They claim to be abroad and unable to show the home in person.

How to Avoid This Scam:

• Only use reputable estate agents registered with **Propertymark, The Property Ombudsman, or the National Association of Estate Agents (NAEA)**.

• Never transfer money before viewing a property and confirming ownership.

• Conduct a reverse image search to check if the listing appears elsewhere.

 

2. Deposit Fraud

Fraudsters impersonate estate agents or sellers to trick buyers into transferring a deposit into a fake account.

How to Avoid This Scam:

• Always confirm bank details directly with the estate agent or solicitor over the phone.

• Be cautious if details suddenly change - this may indicate email hacking.

• Use your solicitor’s secure client account instead of sending money directly to an individual.

 

3. Gazumping Fraud

You’ve had an offer accepted, but the seller suddenly claims another buyer has outbid you - except no other buyer exists. Some dodgy sellers (or agents) use this trick to squeeze more money out of you.

How to Avoid This Scam:

• Get everything in writing, including agreement terms.

• Request a lock-in agreement to prevent last-minute price increases.

• Move quickly in the process to avoid unexpected price hikes.

 

Financial Scams

 

4. Mortgage Fraud

Scammers pretending to be mortgage brokers may offer “guaranteed” approvals for a fee or manipulate applications, leading to legal trouble later.

How to Avoid Mortgage Scams:

• Use FCA-registered mortgage brokers (check on the Financial Conduct Authority’s website).

• Be wary of brokers who claim they can secure a mortgage without any affordability checks.

• Never pay upfront fees for a mortgage guarantee.

 

5. Phishing & Identity Theft

Scammers send fake emails impersonating your bank, mortgage lender, or solicitor to steal personal details.

How to Avoid This Scam:

• Never click on links in unexpected emails asking for financial details.

• Call your solicitor or bank using their official number for verification.

• Enable two-factor authentication (2FA) on all financial accounts.

 

6. Fake Investment Schemes

Fraudsters promise huge returns on property investments or secret deals that seem too good to be true.

Red Flags:

• They pressure you to invest quickly.

• They claim there is no risk involved.

• They ask for payments via cryptocurrency or money transfer services.

How to Avoid This Scam:

• If an investment sounds too good to be true, it probably is.

• Verify firms through the FCA’s Financial Services Register.

• Conduct independent research before investing

 

Rental Scams

 

7. Fake Landlords & Holding Deposit Scams

Fraudsters advertise properties they don’t own and ask renters to pay a deposit upfront, only to disappear with the money.

How to Avoid This Scam:

• Ask to see proof of ownership (e.g. a Land Registry title deed).

• Never pay a holding deposit before viewing the property and signing a contract.

• Use a reputable letting agency that is a member of ARLA Propertymark.

 

8. Rental Bidding Fraud

Some landlords or agents inflate rental demand by falsely claiming multiple offers exist, pressuring you to overpay.

How to Avoid This Scam:

• Research the average rent for similar properties in the area.

• Be wary of landlords who refuse to provide a proper tenancy agreement.

• Ensure your deposit is protected in a deposit protection scheme.

 

What to Do If You’ve Been Scammed

If you suspect fraud, take immediate action:

• Report it to Action Fraud (0300 123 2040) - the UK’s national fraud reporting centre.

• Contact your bank immediately to see if they can stop the transaction.

• Seek legal advice if you’ve transferred large sums of money.

 

How Klink Helps Protect You from Scams

Klink’s Spending Insights feature helps you spot any unusual transactions or withdrawals from your account, giving you more control over your finances. By tracking your financial habits and savings securely, you reduce the risk of falling into scam traps.

The app also provides educational content to keep you informed about property scams and safe financial habits.

 

Final Thoughts

Scammers target homebuyers, renters, and investors at their most vulnerable moments. By staying informed and recognising the warning signs, you can safeguard your money and avoid falling victim to fraud.

Download Klink today to track your spending, stay informed, and protect your financial future.