Sanctions Checks Become Mandatory for Letting Agents from 14 May 2025
From 14 May 2025, all UK letting agents will be legally required to conduct financial sanctions checks on both landlords and tenants. This is a key regulatory step aimed at preventing sanctioned individuals or organisations from operating in the rental market — and strengthening the overall integrity of property transactions.
What Are Financial Sanctions?
Financial sanctions are restrictions imposed by governments to block the assets and limit the financial activity of named individuals, entities, or organisations. These measures are part of wider global efforts to tackle money laundering, terrorism financing, and other serious crimes. In the UK, these sanctions are enforced by the Office of Financial Sanctions Implementation (OFSI), part of HM Treasury.
What Letting Agents Must Do
Until now, only estate agents had obligations to report suspected dealings with sanctioned individuals. From 14 May 2025, these responsibilities will apply equally to letting agents.
Key requirements:
- Landlords: Must be screened at the point of formal instruction. Their identity must be verified and checked against the UK consolidated sanctions list before any marketing or agreements take place.
- Tenants: Must be screened after the landlord accepts their offer but before any tenancy agreement is signed.
Consequences of Non-Compliance
Failing to carry out these checks — or engaging with sanctioned individuals — can result in hefty fines and even criminal prosecution, with penalties of up to seven years' imprisonment. Reputational damage is also a very real risk.
Do Existing Tenancies Need Checking?
The new regulations apply to new tenancy agreements entered into from 14 May 2025 onwards. There's no legal requirement to retroactively screen tenants or landlords with agreements already in place before this date — although some agencies may choose to do so as a precaution.
Why It Matters
For landlords and tenants alike, working with a fully compliant letting agent is essential. Agents with strong sanctions screening processes help ensure all parties stay on the right side of the law — and reduce exposure to regulatory and reputational risk.
Partnering with us means peace of mind: our systems are already aligned with these new requirements, so you can let or rent with confidence.