More than a third of lettings agents lack full confidence in client money safeguards, as AI revealed to be the biggest threat facing the future of the industry

The findings come as the Government outlines plans for greater regulation of property agents, including letting agents, with the handling of client money and financial accountability among the issues attracting scrutiny. 

The Letting Partnership believes the findings demonstrate why stronger financial safeguards, alongside professional qualifications and licensing, must form a central part of efforts to improve standards across the sector. 

AI emerges as biggest future fraud threat

The research found that 54% of respondents believe that letting agents are now more exposed to financial fraud and scams than they were three years ago, while just 8% believe exposure has reduced. 

Phishing and impersonation of landlords or tenants was the most commonly encountered type of attempted fraud or suspicious financial activity, cited by 26% of respondents, followed by suspicious third-party rent payments (21%). 

However, AI-generated fraud, impersonation and deepfake scams ranked third, having already been encountered by 18% of respondents.

Despite ranking third for reported suspicious activity, AI-enabled fraud was identified as the biggest financial security threat facing the sector going forward, selected by 29% of respondents. 

This placed it ahead of other more traditionally common scams such as tenant and payment fraud (27%) and money laundering or suspicious funds (12%). 

Client money safeguards under scrutiny

While 64% of respondents expressed complete confidence in their business's ability to identify a fraudulent or suspicious client money transaction before funds were transferred, 36% did not.

With more than a third of letting agents lacking complete confidence in their existing safeguards, The Letting Partnership believes the findings underline the importance of robust client accounting processes, payment verification procedures and financial oversight. 

Chris Mason, Chief Operating Officer at The Letting Partnership, commented: 

"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. 

"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, despite more traditional forms of fraud remaining prevalent. 

"With the Government now looking to strengthen regulation of property agents, there's an opportunity to ensure that greater professional accountability is matched by stronger financial safeguards. 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." 

Data tables and sources

• Survey of 560 letting agents in England commissioned by ProperPR on behalf of The Letting Partnership via consumer research platform, FindOutnow (05/10/2026).

• View the full data tables and sources online here.