.jpg)
Big changes are coming for letting agents and estate agents this spring. From 14th May 2025, new financial sanctions rules will come into effect as part of the UK government’s plan to tighten anti-money laundering (AML) regulations and crack down on financial crime. Whether you’re an estate agent, letting agent, or landlord, it’s crucial to understand these changes to stay compliant and avoid penalties.
Big changes are coming for letting agents and estate agents this spring. From 14th May 2025, new financial sanctions rules will come into effect as part of the UK government’s plan to tighten anti-money laundering (AML) regulations and crack down on financial crime. Whether you’re an estate agent, letting agent, or landlord, it’s crucial to understand these changes to stay compliant and avoid penalties.
What’s Changing?
1. Letting and Estate Agents Now Classified as ‘Relevant Firms’
From 14th May, letting agents and estate agents will be officially recognised as "relevant firms" under financial sanctions laws. This means more responsibilities:
- Check tenants, buyers, landlords, and sellers against the UK government’s list of sanctioned individuals and organisations.
- Report any suspicious activity to the Office of Financial Sanctions Implementation (OFSI).
- Disclose any funds or assets held on behalf of sanctioned individuals.
Why it matters: Ignoring these checks could result in serious penalties, not to mention reputational damage.
2. No Minimum Property Value for Checks
The rules apply to all properties, regardless of value. Whether it’s a luxury penthouse or a studio flat, every transaction must go through these checks.
Example: Even if you’re handling a short-term rental for a modest property, the same screening rules apply.
3. Reporting Obligations: What, When, and How
You’ll need to report to OFSI as soon as possible if:
- A landlord, tenant, buyer, or seller appears on the sanctions list.
- Funds or assets are connected to a sanctioned person.
What to include in your report:
- The details that raised your concerns.
- Identifying information about the individual or organisation.
- Financial data, such as rent payments, deposits, or purchase funds.
4. What Counts as ‘Letting and Estate Agency Work’?
These new rules cover the core tasks agents handle daily:
- Letting agency work: Helping landlords find tenants for leases of one month or more and assisting tenants in finding rental properties.
- Estate agency work: Facilitating the buying and selling of residential or commercial properties.
When do checks start? As soon as you’re officially instructed by a client.
6. Activities Outside the Scope
Some tasks won’t fall under these new rules:
- Advertising properties without direct involvement.
- Platforms where landlords, tenants, buyers, and sellers communicate directly.
If you’re not directly involved in the transaction, these checks may not apply.
Getting Ready: A Practical Approach
Here’s how to prepare for the changes:
- Review and update your processes to include these mandatory checks.
- Train your team to spot red flags and know when to report.
- Adopt reliable screening tools to make the process faster and more efficient.
Tip: Starting early reduces the risk of missed checks and ensures you’re compliant by the deadline.
Helpful Resources
Need more information? These official sources can help:
Final Thoughts
These changes aren’t just about ticking boxes—they’re designed to keep the property market secure and transparent. Preparing now means fewer headaches later and ensures you’re fully compliant.
Looking for tools to simplify compliance? Visit Title Guardian for resources tailored to letting and estate agents.
14th May is fast approaching—make sure your business is ready.
