New sanctions rules for lettings: What you need to know for May 2025

Important regulatory changes that affect all letting agents, have come into effect from 14th May 2025. These changes come from updated Anti-Money Laundering (AML) and financial sanctions regulations and will bring new compliance requirements across the lettings sector.

What you need to know:

Mandatory checks for all tenancies:

From 14th May 2025, all landlords, tenants, guarantors and adult occupiers (over 18) will be required to complete Customer Due Diligence (CDD) checks before the start of any tenancy.

Proof of property ownership:

Landlords will need to provide documentation confirming ownership of the rental property.

Cost of checks:

The cost is £10 per person (inclusive of VAT) and will be invoiced to you once the tenancy has commenced.

Which tenancies are affected?

We will roll this out in stages:

• New tenancies and new landlords from 14th May 2025
• Renewed tenancies shortly after
• Existing tenancies when relevant eg change to rent

What do you need to do?

We want to reassure you that we will manage this process for you. Our teams will contact you when we need information or documents. There’s no immediate action required from you now.

If you have any questions or concerns, please feel free to reach out to your property manager or local branch. We are here to help.

Frequently Asked Questions

Does this apply to all tenants and landlords?

Yes - this applies to all new tenancies from 14th of May, and then renewals and existing tenancies in later phases.

Who needs to be checked?

All landlords, tenants, guarantors and anyone over 18 living at the property, even if they are not paying rent.

When will you contact me?

You will hear from us ahead of time if we require anything from you.

Can you give me an example of the cost?

The cost of the check is £10 per person (inclusive of VAT) and will be invoiced to you once the tenancy has commenced. For example, if you and a partner own a property and let it out to two adults who have a guarantor, you will pay £50 (incl VAT) for the checks to be completed.

Do I have to pay for the check for each property I own?

No - A landlord will just be checked once, and this report will be uploaded to all of your properties you let through us.

Any other questions you need answered? Speak to our team today.