Sanctions Checks Are Changing – Here’s What It Means for Landlords (And Why Our Landlords Don’t Need to Worry)

Sanctions Checks Are Changing – Here’s What It Means for Landlords (And Why You Don’t Need to Worry)

From 14th May 2025, important new regulations come into force requiring all letting agents to carry out formal sanctions checks on both landlords and tenants. These changes are part of the UK government’s broader strategy to prevent financial crime—such as money laundering and sanctions evasion—within the property sector.

But as one of our landlord clients, we want to reassure you: we’ve got it covered.

🔍 What’s Changing?

Under the new legislation, letting agents must now:

• Screen all landlords and tenants using the UK’s official financial sanctions lists

• Conduct Customer Due Diligence (CDD) on every party involved in the tenancy

• Apply Enhanced Due Diligence (EDD) for higher-risk cases, such as overseas clients

• Keep clear records of every check and decision

• Report suspicions to the Office of Financial Sanctions Implementation (OFSI) without delay

There is no longer a financial threshold—every landlord and tenant must be checked. Failure to comply can result in serious penalties, including fines of up to £1 million and public listing of non-compliant firms.

✅ What This Means for You as a Landlord

As your trusted letting agent, we already include all required sanctions checks and due diligence as part of our standard referencing process. That means:

• You don’t need to take any additional steps

• You remain fully compliant with the latest legislation

• Your property transactions are protected from legal and financial risk

We’ve also trained our team to spot red flags and act quickly where concerns arise—so you can rest assured knowing we’re acting in your best interest and protecting your reputation.

🛡 Why This Matters

These regulations aren’t just red tape—they’re part of a serious effort to stop criminals using the rental market to move illicit money. Letting agents like us are now considered “Relevant Firms” under UK sanctions law, meaning we carry the same legal obligations as banks and law firms.

The risks of non-compliance are real—but when you work with a proactive, fully regulated agent like Iles & Jenkin, you’re in safe hands.

🗂 Peace of Mind Comes as Standard

We know that as a landlord, you want things done properly, legally, and professionally. That’s exactly why we stay ahead of every legislative change—so you don’t have to.

Whether you’re an existing client or exploring your options, our fully managed and Management Plus services ensure you're not just compliant, but protected.

📞 To speak to our team or learn more about how we support landlords through regulation changes, call us on 01934 512537 or email lettings@ilesandjenkin.com.