Title fraud: HM Land Registry stopped £58m of fake property deals — why overseas and mortgage-free landlords are easier targets

HM Land Registry blocked 97 attempted registered title frauds worth more than £58 million in a year, a reminder that landlords do not need a new law to face a serious risk. The most exposed owners are often the least visible ones: overseas landlords, owners of empty properties and owners of mortgage-free homes.

This is not a new compliance regime. It is a control problem. Fraudsters look for properties with limited day-to-day oversight, outdated contact details and transactions where money can be redirected before anyone spots the warning signs.

Separate title fraud from payment-diversion fraud

Landlords should keep two different risks in view.

• Registered title fraud: a fraudster impersonates the owner and tries to sell or mortgage a property they do not own.
• Payment-diversion fraud: bank details are intercepted or altered so deposits, sale proceeds or completion funds go to the wrong account.

The distinction matters because the controls are different. Title monitoring helps with the first; strict payment verification helps with the second.

Why some landlords are easier targets

The common thread is low visibility.

An empty flat may have unmonitored post. An overseas owner may still have old correspondence details on the register. A mortgage-free property may have no lender in the picture to question unusual activity. None of that causes fraud, but it can make impersonation and interception easier.

For London landlords, that risk is amplified by high asset values, remote ownership and properties that can sit vacant between tenancies, refurbishments or probate.

The first step is Property Alert

The clearest immediate action is to use HM Land Registry Property Alert on every relevant title.

It is a monitoring tool, not a fraud shield. It will not block a transaction by itself. But it can provide an early signal that something is happening on a title that deserves urgent attention.

That makes it especially useful for:

• properties with overseas correspondence addresses
• vacant homes
• mortgage-free properties
• portfolios where some assets are rarely visited

If you own through a company, include company-held titles as well as personally owned property.

Check the contact details on the title register

A basic but often overlooked control is to confirm exactly where Land Registry correspondence is being sent.

If notices still go to an old home, a former agent or the rental property itself, a landlord may not realise there is a problem until much later. For higher-risk properties, it is worth asking a solicitor or conveyancer to confirm what is currently shown on the title and whether a trusted UK-based address for service should also be added.

This is particularly important where ownership has outlasted multiple agent changes or a move overseas.

Never change bank details on the strength of an email

The largest avoidable losses often arise from payment-diversion fraud during conveyancing.

The rule should be absolute: do not change payment instructions because an email says so.

Any change to bank details should be verified by calling a known, pre-checked number already on file or taken independently from the firm’s official website. Record who confirmed the change, when, and on which number.

That discipline matters on sales, remortgages and transfers, but it is also sensible for rent redirections, deposit returns and contractor refunds.

Verify advisers before documents or money move

Where a transaction involves a conveyancer, broker or adviser, check that the firm is properly regulated before sending sensitive documents or funds.

• Check solicitors on the SRA register
• Check mortgage brokers and financial advisers on the FCA register

A professional-looking website, polished email footer and central London address prove very little. Verification should happen at instruction stage and again before completion funds are sent.

Staff controls matter in agencies and larger portfolios

For letting agencies and portfolio landlords, weak internal process can undo every other safeguard.

Staff should be trained to escalate:

• unexpected requests for ID or personal information
• urgent instructions that are out of pattern
• pressure to sign documents quickly
• requests to redirect payments

A simple rule works best: no one acts until a senior colleague has completed a callback to a verified number.

What to do if you suspect fraud

Move immediately. Preserve emails, call logs and payment records, and report the issue to HM Land Registry, Action Fraud, the police, your insurer and any regulated firm involved. Delay can make fund recovery and damage limitation much harder.

Three checks to make this week

1. Register each relevant property with HM Land Registry Property Alert.
2. Confirm the correspondence address on every title, especially for overseas, vacant and mortgage-free properties.
3. Put a written no email-only bank detail changes rule into your sales, remortgage and payment processes.

This article is general information, not legal or financial advice.

R&S can help you review the fraud weak points in your lettings or sales process, from title monitoring gaps to bank-detail verification controls before your next transaction.