Attention Landlords in England: New Sanctions Checks for Lettings – What You Need to Know from May 2025

From 14 May 2025, new rules will require letting agents to carry out financial sanctions checks on both landlords and tenants before proceeding with a rental agreement. This is a major regulatory change that could impact your ability to let out your property if you do not comply. Here’s what you need to know and what you need to do to stay on the right side of the law.

What Are Financial Sanctions Checks?

Financial sanctions are restrictions imposed by the government to prevent certain individuals, companies, or organisations from accessing financial services or the property market. These sanctions are enforced by the Office of Financial Sanctions Implementation (OFSI), part of HM Treasury.

From May 2025, letting agents will be legally required to check that landlords and tenants are not on the UK’s consolidated sanctions list before proceeding with any rental agreement.

What This Means for You as a Landlord

If you rent out property through a letting agent, you will now be subject to mandatory screening before new tenancies can be agreed. Here’s what this will involve:

✅ Identity Verification – Letting agents will need to check your identification, such as a passport or driving licence, to confirm who you are.

✅ Sanctions List Screening – Your details will be checked against the UK government’s sanctions list to ensure you are not subject to financial restrictions.

✅ Record-Keeping – Agents must keep detailed records of all checks, including when they were carried out and the results.

If an agent finds that you (or your tenant) appear on the sanctions list, they cannot proceed with the letting and may be required to report it to the authorities.

What You Need to Do

To ensure a smooth letting process and avoid any delays or legal complications, take the following steps:

📌 Ensure Your Identification is Ready – Have your passport, driving licence, or other official documents up to date and accessible.

📌 Work with a Compliant Letting Agent – Only use agents who are fully aware of and comply with the new sanctions screening requirements.

📌 Understand the Consequences – Agents who fail to carry out these checks face severe penalties, including unlimited fines and up to seven years in prison. You must ensure your agent is following the rules correctly.

Final Thoughts

These new checks are part of a wider effort to tackle financial crime and ensure that properties in England are not rented out to sanctioned individuals. As a landlord, you must be prepared for this additional layer of compliance.

The best way to avoid any issues? Stay informed, have your documents ready, and work with a reputable letting agent who understands the new requirements.

If you’re unsure how these changes will affect you, speak to one of our team or check the latest guidance from the Office of Financial Sanctions Implementation (OFSI).