Reverend Mike Hall, who was working away, was alerted that strangers were renovating his house, which had been stripped of all his belongings. The new owner had purchased the property and was legally recognised as the owner, leaving Mr Hall in a distressing legal battle to reclaim his home.
The Land Registry eventually put his name back on the title after the house had been left empty for months as the court case proceeded. When Mr Hall returned in 2023, the property had been occupied by squatters who produced a fake rental contract, leading to another battle to secure an eviction.
The law on squatting
Squatting has been illegal in the UK since 2012 and can lead to six months in prison, a £5,000 fine, or both. Police can intervene immediately when squatters are caught breaking in, but this rarely happens. Instead, owners must apply to the court for a possession order, which is what happened in Mr Hall’s case.
Agents managing unoccupied properties should undertake regular checks and contact the property owner and the police if people are found breaking into or squatting in a residential property.
A long-term squatter can actually become the registered owner of property or land they’ve occupied without the owner’s permission if they can prove that they, or a succession of squatters, have occupied the property continuously for 10 years, have acted as owners of the property for the whole of that time, and did not have the owner’s permission, for example the property was not originally rented to a squatter.
The role of estate agents in preventing property fraud
Professional agents play a crucial role in safeguarding consumers against such fraudulent activities. To protect clients and maintain the integrity of property transactions, estate agents are legally required to undertake customer due diligence on all property buyers and sellers and, importantly, carry out ongoing monitoring under the Anti-Money Laundering Regulations. Implementing robust 'know your client' procedures and conducting thorough identity verification, including verifying photo identification and proof of address, is vital to ensure the legitimacy of everyone involved in a transaction.
Educating clients about potential scams, such as phishing or identity theft, and advising them on secure communication practices during transactions is also invaluable. It is good practice to stay informed about emerging fraud tactics to identify and prevent new methods employed by criminals.
Encouraging consumers to take proactive measures
HM Land Registry Property Alert is a free service that notifies individuals of any significant changes or applications made against their property, allowing for prompt action if fraudulent activity is detected. Propertymark recommends that agents advise clients to use this service as best practice.
Owners can also request a title restriction that prevents the Land Registry from registering a sale or mortgage on the property unless a conveyancer certifies the application was made by the rightful owner.
Agents should also advise clients to protect their personal information and be cautious about sharing details that could be used for identity theft.
Anti-money laundering (AML) training and resources
We have created a number of resources, forms and training options for agents and auctioneers to comply with their Anti-Money Laundering obligations.
