EXPERTS are warning about a type of fraud that can sell your house from under you with “devastating” consequences – and this is how you can protect yourself.
Property and identity fraud is quietly becoming one of the biggest risks a homeowner faces, and most people have no idea it exists until it is too late.
Fraudsters steal an owner’s identity, pose as them, and try to sell or remortgage the home without the owner ever knowing.
HM Land Registry blocked fraudulent applications against more than £59 million of property in 2024-25 alone, and over £194 million in the last five years.
Around 86% of victims are “absent owners” such as landlords, people living abroad and elderly owners in care.
The favourite target is a mortgage-free home, because there is no lender doing any checks.
Cifas, a fraud prevention service, recorded more than 242,000 identity fraud cases in 2025, over half of all fraud reported, now made easier by AI-generated fake documents.
The same stolen identity that opens a loan in someone’s name can be turned on their house.
But experts say the strongest defences are free. You can sign up for HM Land Registry Property Alerts, and a Form LL restriction that forces a solicitor to verify the seller really is the owner.
What frightens me most about property fraud is how quiet it is
Evren Ergin, Founder And Developer at ValuQ, said owners can lose tens of thousands of pounds.
He added: “What frightens me most about property fraud is how quiet it is. There is no broken window. Someone steals your identity, poses as you, and tries to sell or remortgage your home while you are still living in it, none the wiser. The cruel twist is that the most exposed homes are the ones people are proudest of: mortgage-free and long-owned.
“No mortgage means no lender watching the door. HM Land Registry blocked fraud against £59 million of property last year, but when a case slips through, owners can lose tens of thousands, or the house itself. It made just four compensation payouts all year. I do not say this from the outside.
“I have had credit taken out in my name through identity fraud, so I know how violating it is to learn someone has been wearing your name. This fraud runs on our own complacency. It works because nobody is looking. The cheapest insurance in property is to watch your own title.”
Tracey Dixon, Buy-to-Let Mortgage Specialist & Owner at Cardiff-based Pure Mortgage and Protection, said there is a simple step to prevent the fraud.
She added: “Most homeowners worry about interest rates, but few think about property fraud. Yet the consequences can be devastating. Landlords, mortgage-free homeowners and those living abroad can be particularly vulnerable because there may be fewer day-to-day checks on the property.
“As fraudsters become increasingly sophisticated, one of the simplest steps homeowners can take is to sign up for HM Land Registry’s free Property Alert service.
“It takes only a few minutes and could provide an early warning if someone attempts to make changes relating to your property. Protecting your property ownership should be just as important as protecting the property itself.”
The consequences can be devastating
Doug Miller, Director at Bath-based Lansdown Financial Services, said you’re most at risk if your property is mortgage-free.
He added: “As mortgage brokers, we’re often the first line of defence against identity and property fraud. Enhanced ID verification, source-of-funds checks and vigilance around unusual remortgage requests are more important than ever, particularly as AI-generated documents become more convincing.
“Many homeowners don’t realise that mortgage-free properties can be the most attractive targets for fraudsters. Every homeowner should sign up for HM Land Registry Property Alert and consider a Form LL restriction – both are simple, low-cost steps that can prevent significant financial and emotional distress.
“Fraud prevention is no longer just a legal or conveyancing issue; it’s a key part of protecting clients’ wealth and property ownership.”
Jamie Elvin, Director at London-based Strive Mortgages, said it’s a stealth fraud.
He added: “One thing that stands out to me is how little attention property fraud gets compared to other financial risks. People will spend weeks comparing mortgage rates to save a few pounds a month, yet many have never considered how vulnerable their property ownership could be.
“The reality is that fraudsters don’t need to break into your home — they just need to steal your identity. That’s why simple steps like Land Registry Property Alerts are so important. They take minutes to set up, but could save homeowners a huge amount of stress and financial loss down the line.”
Land Registry Property Alerts are so important
Patricia Ogunfeibo, Founder & non-practicing Solicitor at London-based tenant2owner, said she has experience of how effective the HM Land Registry’s alert system is.
She added: “As you say, the solutions are simple, and often free of charge, but like most things, a lack of knowledge is the real culprit. HM Land Registry’s alert system couldn’t work better. I once asked a solicitor to register something on a property I own, he did it whilst we were speaking, and within the minute the service alerted me to his activity.
“The alert however, only notifies, buying the crucial time to act, while a free Form LL restriction, will more than likely stop a fraudulent sale or mortgage being registered at all – stopping a property thief in their tracks. A campaign to inform would go a long way: brokers, lenders and solicitors encouraging customers to register might be a start.
“The same logic applies to identity, which is often the gateway to property fraud in the first place. Signing up for a credit reference agency’s alert service guards against significant damage on that front, and it’s a false economy to refuse the modest monthly fee that secures it.”
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said identity fraud is devastating.
He added: “As a specialist bad credit mortgage adviser, I see clients working incredibly hard to secure a home. The thought of them losing it to identity fraud is soul destroying. I once had a client applying for an adverse-credit remortgage, only to discover a fraudster had already exhausted their equity via a hidden charge.
“Because the client already had a damaged credit profile, they hadn’t noticed the extra credit footprints, which I discovered on inspection of their credit reports. Fraudsters love complex profiles, hoping the noise masks their crime. To protect my operations, we mandate biometric ID verification, matching live selfies against passports to beat AI fakes.
“Every homeowner must sign up for the free HM Land Registry Property Alert service today. It emails you the second anyone touches your deeds. For landlords or unmortgaged owners, get a Form LL restriction. It’s a total circuit-breaker.”
Brokers and advisers have a responsibility to warn property owners
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said brokers and advisers have a responsibility to warn property owners.
She added: “Property fraud is one of those risks people only take seriously after something goes wrong, and that is the scary part. Your home can be your biggest asset, but many owners are doing less security around it than they do around an online shopping account.
“I have not personally had a client lose a property this way, but I do think brokers and advisers have a responsibility to raise awareness, especially with landlords, elderly clients, clients living abroad and mortgage-free homeowners. These are exactly the people fraudsters like because there may be fewer day-to-day checks.
“The simplest advice is: do not assume ownership is protected just because the property is registered. Use HM Land Registry’s free Property Alert service, keep your contact details updated, and consider a Form LL restriction where appropriate so extra identity checks are required before a sale or mortgage is registered. Fraud prevention is not paranoia. It is basic asset protection.”
Harry Goodliffe, Director at Winchester-based HTG Mortgages, said many have no idea about this type of fraud.
He added: “The scariest thing about property fraud is how few people know it exists. Most homeowners assume that nobody could possibly sell or remortgage their property without them knowing, but fraudsters are becoming increasingly more clever.
“Simple advice: don’t wait until you become a victim to learn about the protections available. A few minutes spent setting up alerts and checking your property’s registration details could save years of stress.”
Photo by Bilal Furkan KOŞAR on Unsplash.
