Attention Tenants in England: New Letting Agent Checks from May 2025 – Here's What You Need to Know

As of 14 May 2025, new regulations will come into effect requiring letting agents across England to conduct financial sanctions checks on both landlords and tenants. This initiative aims to prevent individuals or entities subject to financial sanctions from participating in the rental market, thereby enhancing the integrity of property transactions. Here's how this change affects you as a tenant and what steps you should take when planning your next move.

What Are Financial Sanctions Checks?

Financial sanctions are legal restrictions imposed to freeze the assets of designated individuals, companies, or organisations, limiting their access to financial services. In the UK, the Office of Financial Sanctions Implementation (OFSI), a division of HM Treasury, oversees the consolidated list of sanctioned entities. Letting agents must now ensure that neither tenants nor landlords appear on these sanctions lists before entering into contracts or accepting payments.

What Does This Mean for You as a Tenant?

When you apply to rent a property, letting agents will:

• Verify Your Identity: You'll need to provide valid identification documents, such as a passport or driving licence, to confirm your identity.
• Conduct Sanctions Screening: Agents will check your details against the government's consolidated sanctions list to ensure you're not a designated individual.
• Maintain Records: Agents are required to keep detailed records of all checks, including the date of the check and its outcome.

Steps to Prepare for Your Next Move

To ensure a smooth rental process under the new regulations:

1. Gather Necessary Documentation: Have your identification documents ready and ensure they are up to date.
2. Be Prepared for Screening: Understand that sanctions checks are now a standard part of the rental process. This is a legal requirement, and agents must comply to avoid severe penalties, including substantial fines and imprisonment for up to seven years.
3. Choose Reputable Letting Agents: Work with established letting agencies that adhere to the new regulations. This ensures compliance and protects all parties involved in property transactions.

Understanding the Implications

These changes introduce stricter obligations for letting agents, making financial sanctions compliance non-negotiable. By taking proactive steps now, you can protect yourself, avoid delays in securing a rental property, and contribute to the fight against financial crime.

Final Thoughts

As these new regulations come into effect, being prepared and understanding the additional checks can help make your renting experience smoother. Ensure you have the necessary documentation and cooperate with letting agents during the screening process. This not only facilitates your rental application but also supports broader efforts to maintain the integrity of the rental market.