Today is the day, 14 May 2025, that letting agents across the UK become subject to new financial sanctions rules.
These are part of updated government legislation aimed at preventing individuals or organisations on the UK sanctions list from accessing the UK housing market.
It’s a significant enough change, and in many ways is a serious change – especially considering the implications to letting agents for any breach.
But for most landlords and tenants, it won’t cause any disruption at all.
At Petermans, we have been working behind the scenes to ensure that we are already fully compliant in advance of the legal switchover today, with all the right systems in place.
Nevertheless, with change comes curiosity, questions and – the natural cousin of questions – uncertainty.
So here’s what you need to know, in plain English.
What has actually changed for tenants and landlords in Edgware?
This change is something I have written about before (see article here) – but I thought it would be useful to outline what it means for tenants and landlords, rather than for the industry.
From today, letting agents have joined a long list of other types of business which are classed as being “relevant firms” under UK financial sanctions law.
It means that we have a legal duty to:
- Check the government’s sanctions list when agreeing a new tenancy or landlord instruction
- Report any matches to the Office of Financial Sanctions Implementation (OFSI)
- Refuse to proceed with any transaction involving a person or company on the list
This is a legal requirement.
It applies even if the landlord or tenant doesn’t realise they’re on the list.
And more than that – for us, as agents, it really does matter, because this legislation works on a strict liability basis. If we (letting agents) drop the ball and miss a match, allowing a sanctioned individual or entity slip through the net, then we face prosecution, enforced by the Office of Financial Sanctions Implementation (OFSI) – even if the mistake were unintentional.
In other words: it is critical we make sure policies and processes are in place.
What does it mean for you as a Edgware landlord?
If you’re a landlord, we might be asking you for ID or additional verification – especially if you have recently moved to the UK or have overseas interests.
Agents are not legally required to verify ID for every landlord or tenant under the new sanctions rules, but from our point of view – and not least because of the nature of this change, being a ‘strict liability regime’ – we do need to be confident in who we’re dealing with.
At Petermans, we have opted to take a proportionate yet cautious approach. We will therefore be checking full names against the official UK sanctions list, and in some cases that will mean having to verify identity if there’s any uncertainty.
These checks are quick, discreet, and designed to protect everyone involved.
What does it mean for you as an Edgware tenant?
If you’re a tenant, you may notice one or two extra checks at the application stage, particularly if you’re renting for the first time or have a non-UK background.
Similar to the sort of checks we would make on a landlord, these checks are quick, non-intrusive, and confidential.
Most tenants won’t notice anything different at all. It’s part of our compliance process – just like referencing or Right to Rent checks. In fact, if you have rented with us previously, we will actually be using the same provider that you dealt with for references – so the process should seem familiar from the start.
Realistically it amounts to an extra check at our end, but from a tenant’s perspective it will not feel much different to the process we would have gone through previously.
Here is what we are doing at Petermans
We’ve made sure that our team is fully trained, and our systems are up to date, using an existing service provider to implement the new checks, which brings a level of familiarity to ourselves and our clients.
Here is a quick breakdown of what our process will include:
- Screening every landlord, tenant, and guarantor against the UK Sanctions List
- Using specialist software to ensure accurate results and instant alerts
- Keeping secure records of the checks we carried out
- Updating our privacy policy and Terms of Business to reflect the new obligations
- Training staff on how to recognise, report and manage any potential matches
We’re taking it seriously because it matters. These laws are designed to protect the integrity of the housing market.
As aggravating as it seems to have been for the industry, at the end of the day we recognise that there is a problem, and that we can be part of the solution.
When it gets put that way, we are happy to be doing our part.
A Note on Privacy
This is not a consent issue. We do not need landlords or tenants to give us consent to carry out these checks. It is a legal requirement.
Nevertheless, we respect privacy and we are absolutely committed to handling your data sensitively and securely.
All checks are carried out in line with our privacy policy, which is available on request.
In Summary
The difference really is all behind the scenes. You as landlords or tenants won’t see much has particularly changed, but rest assured: we’re doing things properly.
If you are letting your property with ourselves, or renting your next home through us, you can have full confidence that Petermans is absolutely on top of this latest change to regulations – but also committed to protecting your privacy and interests.
If you have any questions at all about this new legislation or how it might affect you,
here below is a useful FAQ that should help answer to any burning questions.
Top 10 Burning Questions About New Sanctions Rules (For Landlords and Tenants)
1. What are financial sanctions, and why do they matter in property?
Financial sanctions are legal restrictions imposed on individuals, companies or organisations linked to activities such as terrorism, war, or serious financial crime. If someone is named on the UK sanctions list, letting them rent or manage property in the UK is illegal.
2. What has changed for letting agents?
From 14 May 2025, all letting agents should check whether landlords, tenants or guarantors appear on the UK Sanctions List. If there’s a match, they must report it — and the deal cannot proceed.
3. Who exactly is being checked?
We will be screening without prejudice:
- Landlords
- Tenants
- Guarantors
- In some cases, joint owners or joint tenants
4. What happens if someone is on the list?
If there’s a positive match, we must notify the Office of Financial Sanctions Implementation (OFSI). That tenancy or instruction will be frozen and cannot proceed. Penalties for non-compliance can include heavy fines.
5. Is this the same as anti-money laundering (AML)?
No. In Lettings, AML rules apply to agents dealing with property over a certain rental value per month (currently €10,000 – but this has been subject to discussions at a high level and may change or the threshold be removed in order that all rentals become subject to AML regs). These new financial sanctions rules apply to all letting agents, regardless of property value or location.
6. Will I be asked to prove who I am?
Not always, but sometimes. We use a proportionate approach; if we need to verify someone’s identity to rule out a match, we will do so. It is quick, secure and only used for this purpose.
7. What if I have already passed referencing or a Right to Rent check?
Sanctions checks are separate to other checks and are checking against other things (for different reasons). Even if you have passed other checks, we still need to confirm that no one involved appears on the sanctions list.
8. Do I need to give consent for a sanctions check?
No. This is not optional and is non-negotiable – it is our legal obligation. However, we are fully compliant with data protection law, and your information will be handled securely and appropriately.
9. What is Petermans doing to stay compliant?
We have invested in staff training and specialist software, updating our existing internal procedures to reflect the change. We looked into various options and have proceeded with the one that made the most sense, but which also provides familiarity not just to our clients, being through an existing provider, but also to ourselves, meaning less room for error.
10. Will this affect my tenancy or application?
For the majority of people, not in any way at all. These checks are done quickly in the background and only cause disruption if there is a match. You won’t even notice them unless we need more info.
Still Have Questions?
Get in touch. We’re here to help landlords and tenants navigate these new rules with clarity, professionalism and care.
📞 020 8958 5040
📩 [email protected]