Whilst we await the announcement of two of the most impactful changes to the lettings industry in over 30 years in the form of the Renters Rights Bill and the Minimum Energy Efficiency Standards (MEES), we are firstly faced with changes to our due diligence checks. From the 14th May 2025, residential and commercial letting agency will be required to carry out sanctions checks on all Landlords, Tenants, and Guarantors. Whilst different to Anti-Money Laundering checks (which only applies to monthly lets over €10,000), this change is because letting agents have been added as a “relevant firm” in the financial sanctions regulations. Sanction checking is a screening process to ensure a person or company is not on a UK nor international list for money laundering, terrorism, human rights violations, organised crime, or political corruption. Should any suspicions be raised, or if there is a match on the UK Sanctions List, lettings agents will have a duty to report this to the Office of Financial Sanctions Implementation (OFSI).
Therefore, when taking on a new client, we will be required to carry out a screening check on Landlords (and whomever else may be receiving the funds). We will also screen Tenants and Guarantors (individuals as well as businesses) when an offer has been accepted by the Landlord.
As ever, compliance is our priority and BCM Wilson Hill will continue to keep you up to date with the latest news.
Should you have any questions, or would like to discuss this further, please contact us.