2 Key Points impacting lettings & sales
Sanction checks on landlords and tenants & guarantors from 14/5/25
Replacement of Material Information guidance to DMCC Act
Sanction checks on landlords and tenants & guarantors from 14/5/25
From 14th May 2025, all letting agents in the UK will be required to complete financial sanctions checks on all landlord and tenants.
This FAQ document follows on from our webinars and will be updated as more questions are received.
Q1: Is this a change to Money Laundering Regulations?
No, nothing has changed and letting agents are required to complete AML checks where
monthly rent is or exceeds 10,000 euros. However, they must continue to remain vigilant for
any suspicious activity and it is recommended that they always confirm legal ownership
before entering into an agreement with a landlord and confirm the ID of that legal owner.
Q2: Who will we need to complete checks on?
All landlords, tenants and guarantors.
Q3: Does the 10,000 euro’s limit still apply?
No, financial sanction checks have no minimum rental value applicable.
Q4: What are Financial Sanctions?
These are set up by an organisation called the Office of Financial Sanctions Implementations or OFSI for short and are part of HM Treasury.
Individuals or organisations are subject to financial sanctions if they are on the list and are known as ‘designated persons’.
Sanctions can involve freezing financial assets or limiting access to investments and financial services.
Q5: Why do we need to do this now?
This helps the UK prevent financial crime, terrorism and other unacceptable behaviour. It also helps the UK meet its Foreign Policy and National Security and protects the integrity of the UK Financial system.
Q6: When do we need to complete these checks?
This is applicable to landlords before we commence marketing a property and for a tenant once an offer has been accepted but before a tenancy agreement is signed.
Withdrawal of material information guidance
This briefing paper is to help provide some clarity following the announcement on 9th May 2025 that the ‘Disclosure of material
information’ guidance produced by the National Estate and Letting Agency trading standards team has been withdrawn with immediate effect.
The has come about because new legislation, the Digital Market, Competition and Consumer Act 2024 (DMCC Act) now replaces and
supersedes the former Consumer Protection from Unfair Trading Regulations 2008
The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) significantly updates the UK's consumer protection landscape, While CPRs focused on prohibiting unfair commercial practices, the DMCC Act introduces broader and more stringent measures, particularly addressing modern digital world we now live in.
Material Information – is information that an average consumer needs in order to take an informed transactional decision. This could be deciding to view a property, deciding to place an offer on a property, and deciding which agent to instruct to act on their behalf.
