New Financial Sanctions Rules: What Landlords and Tenants Need to Know
Strict new financial sanctions rules affecting many landlords and tenants apply as of May 2025. Here’s a quick heads-up on the changes.
What are the new financial sanctions rules?
Financial sanctions rules prevent certain people and organisations from doing business in the UK and enable their assets to be frozen. These include those suspected of terrorism, corruption or connected with certain foreign regimes.
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, runs the sanctions system. They publish a list of individuals and organisations the government has subjected to sanctions.
Certain types of businesses must comply with what are called reporting obligations under these rules. If they believe someone on the list is attempting to conduct business with them, they must report this to OFSI.
From 14 May this year, letting agents in the UK will be added to the list of businesses that must do this.
Estate agents are already covered by these rules.
What the new sanctions rules mean in practice
The new rules mean that letting agents must check that landlords they let property on behalf of are not on the official sanctions list.
The new rules also mean that when a tenant applies to let a property – and is accepted by the landlord – the letting agent must check that the tenant is not on the list.
The new rules apply to lets of a month or more and for any value.
This new regulation will affect an estimated 2.9 million rental properties.
What do landlords and tenants need to do
Nothing – if you are letting or renting a property through a professional letting agent. Your agent will take care of the necessary checks.
But be aware your letting agent may need to ask for certain personal information and ID from you. This is so they can carry out financial sanctions and other legally required checks.
It’s important to realise that requesting this information and conducting these checks does not mean your letting agent thinks you have done anything wrong. They are just complying with the new rules the government has introduced.
Agents who fail to carry out these checks could be fined. Failure to comply can also be a criminal offence.
Understanding and dealing with complex and ever-changing regulations like these is just part of our professional letting and management service. If you’d like to know how this can make your life as a landlord easier, contact us.
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