What every landlord and tenant needs to know
Until recently, sanctions checks in the lettings world were something most people didn’t need to think about. Unless you were letting a property for over €10,000 a month (roughly £8,300 PCM), the process was unlikely to affect you.
But that’s all changed. From 14th May 2025, sanctions checks are now mandatory for every prospective landlord at the point of instruction and for tenants before any agreement is finalised, no matter the rental value.
Why the sudden change?
The government is tightening its grip on financial crime and rightly so. Sanctions are powerful tools used to protect national security, uphold international law and prevent criminal activity. They can block access to assets, restrict financial services and stop certain individuals or entities from buying, selling, renting or even entering the UK.
Letting property has, unfortunately, become one of the many ways that criminals attempt to launder money or secure assets. The Office of Financial Sanctions Implementation (OFSI) is now stepping in to close loopholes and ensure agents are doing their bit to prevent this. The penalties for non-compliance? They're significant. Failure to carry out the proper checks could lead to fines of up to £1 million or 50% of the transaction value, whichever is higher, and even criminal prosecution.
In a market where trust is everything, you can rely on us to ensure your property transactions are secure and compliant.
At Ashtons, we’re not scrambling to adapt to this legislation, we’ve already been doing it for years. Every buyer, seller, landlord, tenant and guarantor has long been screened by our team against both the UK Sanctions List and the Politically Exposed Persons (PEPs) list as standard. This commitment to due diligence is just one of the ways we go above and beyond to protect our clients and uphold professional standards.
Stay ahead with expert guidance
While some agents are only now waking up to their responsibilities, Ashtons are already one step ahead. If you're unsure about your obligations or want to make sure you're covered, our expert Asset Management team is here to help. Request a free Lettings health check today by calling us on 01707 903444 or email assetmanagement@ashtons.co.uk.
