Rental fraud thrives on urgency. A flat looks perfect, the price seems a little low, other people are said to be interested, and a payment is demanded to “secure” it before anyone has seen the inside. This guide explains how rental fraud works, and what the rules in England say about which payments a landlord or agent can lawfully ask for. The Tenant Fees Act guidance and Shelter advice referred to here apply to England. Scotland, Wales and Northern Ireland have their own tenancy rules, which are not described.
How rental fraud works
A March 2025 Home Office announcement, based on National Fraud Intelligence Bureau data, describes rental fraudsters as typically offering access to properties that do not exist, or that are not theirs to rent, using fake details and photos and usually asking prices well below the market rate. To secure the property or even arrange a viewing, they usually demand a deposit or the first month’s rent, and people desperate for a home often pay in order not to miss out. The announcement said losses came to nearly £9 million across around 5,000 reported cases in 2024, and that people aged 18 to 39 accounted for almost three quarters of cases. It also noted that rental fraud often takes place through properties advertised on social media.
Payments that should raise questions
The government’s Tenant Fees Act 2019 guidance for tenants in England, published on 7 April 2026 and updated on 7 July 2026, sets out the fees a landlord or agent is allowed to charge. Anything not on its list can be challenged. The main points are:
- Rent before signing: the guidance says you should not pay any rent before you sign a tenancy agreement. After signing, a landlord can ask for a maximum of one month’s rent before the tenancy starts.
- Holding deposit: to reserve a property while pre-tenancy checks are carried out, the maximum is one week’s rent, which the landlord can hold for 15 days unless a different period is agreed in writing.
- Tenancy deposit: where annual rent is below £50,000 the maximum is five weeks’ rent, and where it is between £50,000 and £100,000 the maximum is six weeks’ rent. The landlord must protect it in a government-approved scheme.
Shelter England, whose advice page was last updated on 1 May 2026, adds a way to check the numbers: monthly rent multiplied by 12 and divided by 52 gives the maximum holding deposit, and multiplying that by five gives the maximum tenancy deposit under the standard cap. For a rent of £1,000 a month, that works out at about £230.77 for a holding deposit and about £1,153.85 for a tenancy deposit. Shelter also says most other tenancy-related fees are banned, for example for referencing or credit checks.
Viewing before paying
The Home Office urged renters not to rush or pay money over for a property before viewing it in person. Shelter’s advice is the same: do not pay a holding deposit without seeing the property, and pay one only if you are serious about taking on the tenancy. It points out that virtual viewings do not always show what a property is really like, and suggests keeping a copy of any viewing video in case it is needed as proof of being misled. Its advice for real viewings is to bring a notepad, write everything down and ask the landlord or agent to write down amounts paid and what they are for, keeping the records in a file. Receipts should be obtained for anything paid in person.
New rules from 1 May 2026
Shelter’s page records two changes that came in on 1 May 2026. First, rental bidding is now illegal: landlords and agents must include the rent in the advert, tenants should not offer more than the advertised rent, and landlords and agents cannot ask for or accept more. Second, the rent in advance limit of one month applies, and the money can only cover the first rent payment. If a landlord or agent breaks either rule, Shelter says a tenant can complain to the council’s private renting team, which can fine the landlord or agent and, in the case of excess rent in advance, tell the landlord to repay it.
Deposit protection
Shelter says landlords or agents who take a deposit for an assured tenancy must protect it in a scheme within 30 days. The Tenant Fees Act guidance similarly requires deposits to be protected in a government-approved scheme. A landlord who cannot say which scheme holds a deposit is a reason to ask more questions.
If money has been paid
If a fee that is not allowed has been paid, the Tenant Fees Act guidance says to tell the landlord it is not allowed, keep a record of payment requests and get advice from Shelter or Citizens Advice. If a holding deposit is not returned within the required time or in writing, it can be challenged with the local council or the First-tier Tribunal. GOV.UK scam guidance directs victims who have lost money to Report Fraud (the new name for Action Fraud), or to Police Scotland on 101 in Scotland.
Frequently asked questions
Can I be asked for the first month’s rent before signing?
The Tenant Fees Act guidance says you should not pay any rent before you sign the tenancy agreement.
The bottom line
In England, a listing that demands rent before signing, more than a week’s rent as a holding deposit, or payment for a property nobody has seen fits the pattern the Home Office describes for rental fraud. Viewing in person, keeping written records, comparing every requested payment with the Tenant Fees Act limits and checking that deposits are protected give renters practical defences, and suspected fraud can be reported to Report Fraud.
Sources
- Home Office, “Young people urged to ‘Think Fraud’ over rent offers” (GOV.UK, 3 March 2025)
- Ministry of Housing, Communities and Local Government, “Tenant Fees Act 2019: guidance for tenants” (GOV.UK)
- Shelter England, “Protect yourself when handing over money”
- HM Revenue and Customs, “Identify tax scam phone calls, emails and text messages” (GOV.UK)