Fraudsters are taking advantage of the limited supply of student accommodation by posting fake listings online, according to recent data. With a significant increase in rental scams reported in 2023, it is crucial for potential investors to be wary of fraudulent schemes.
The National Association of Property Buyers (NAPB) and Gumtree have joined forces to raise awareness about student housing scams, emphasizing the importance of vigilance when searching for accommodation. Additionally, the NAPB warns that the rising number of landlords leaving the market has further exacerbated the scarcity in available student housing.
Rising Demand Attracts Crooks
Gumtree’s head of trust and safety, Joseph Rindsland, has issued a warning that finding student accommodation this year will be challenging. The demand for rental properties and houses to share has significantly increased, making it more difficult for students to secure suitable housing options. In light of this situation, fraudsters may attempt to exploit the scarcity by scamming unsuspecting individuals. Rindsland advises potential tenants to exercise caution by scrutinizing advertisements that seem too good to be true, visiting properties in person before making any payments, avoiding upfront fees, and being cautious if not asked to participate in tenant screening.
The NAPB has highlighted that the lack of student housing supply is further compounded by the growing number of landlords leaving the sector. Demand for rental properties across the country has surged, leaving fewer options available for students. The rising popularity of short-term rentals has also contributed to the decrease in properties suitable for student accommodation. In addition, the post-Covid period has seen a surge in students looking for housing near their educational institutions, exacerbating the supply shortage. These circumstances create an environment in which fraudsters can easily take advantage, using tactics such as fake listings, multiple lettings of the same property, and off-site fraud aimed at exploiting personal information elsewhere.
Data from Gumtree reveals that demand for rental properties in the UK has increased by 117% in the first half of 2023 compared to the previous year. Edinburgh faces the most significant supply problem, with an average of 25 replies to every property listed for rent in the city. Birmingham, London, Leeds, and Liverpool also experience high demand for rental properties. Furthermore, Edinburgh sees the highest average number of replies to listings for shared accommodation, followed by Glasgow, Leeds, Brighton, and Newcastle. This surge in demand exacerbates the scarcity of available housing options for students.
Conclusion
As potential investors consider the UK rental market, it is crucial to be aware of the increasing risks associated with student housing scams. The limited supply of student accommodation, coupled with the growing number of landlords leaving the sector, has created a challenging environment for students seeking suitable housing. The demand for rental properties in the UK has skyrocketed, particularly in cities like Edinburgh, Birmingham, London, Leeds, and Liverpool.
To avoid falling victim to fraudsters, it is advisable to exercise caution, be skeptical of too-good-to-be-true advertisements, personally visit properties before making any payments, avoid upfront fees, and participate in tenant screening processes. By staying informed and vigilant, potential investors can navigate the market more effectively and protect themselves from fraudulent schemes.