New legislation relating to sanctions checks is now live having become mandatory for letting agents from 14th May 2025. Prior to this date sanctions checks were only required where monthly rents exceeded €10,000 per month (approx £8,250). This deadline has now been removed meaning agents will be subject to reporting obligations as “relevant firms” under financial sanctions laws.
As part of the new regulations sanctions checks are now required for the following:
• Landlords – at the point of instruction
• Tenants – before concluding a letting agreement
• Guarantors – before concluding a letting agreement
What are sanctions?
Sanctions are restrictions the government sets to prevent financial crime, protect national security, and uphold international obligations. They can apply to people, businesses, or even entire countries. There are several kinds of sanctions, including:
• Financial sanctions – block access to assets, restrict financial services, or stop services from being provided to specific individuals or entities
• Trade sanctions – limit the buying and selling of goods with certain countries
• Immigration sanctions – prevent named individuals from entering or staying in the UK
• Transport sanctions – control aircraft and ship movements associated with sanctioned entities
Why are the changes to sanctions regulation happening?
Criminals often look to evade sanctions or create complex financial trails that are hard to trace. By removing the €10,000 per month threshold, the Government is closing a loophole and making sure that no sanctioned individuals can enter into rental agreements unnoticed.
As Liverpool’s leading estate agent and letting agent we have partnered with Goodlord the leading provider of referencing/regulatory support in the UK. If you are a landlord managing your own property or have your property managed by another agent, do not hesitate to get in touch here to ensure that you comply with this new legislation.,
