Important Update for Landlords: New Legal Sanctions Checks Now Required by Letting Agents and self managing landlords
As of 14 May 2025, all UK letting agents must now conduct mandatory sanctions checks on both landlords and tenants — no matter the property type or rental amount. This legal obligation has been introduced by the UK government to strengthen national compliance with international financial sanctions and to prevent funds or property from being used by sanctioned individuals or organisations.
At Front Door Lettings, we want our landlords to be fully informed and prepared for these changes. If you’re self managing your property, this change will apply to you too.
What Are Sanctions Checks and Why Do They Matter?
Sanctions checks involve screening individuals against the UK sanctions list, maintained by the Office of Financial Sanctions Implementation (OFSI). This list includes individuals, companies, and organisations that the UK government has identified as being involved in activities such as:
- Money laundering
- Terrorism or terrorism financing
- Human rights violations
- International criminal activity
If a person appears on this list, they are subject to strict financial restrictions — including a freeze on assets — and cannot legally receive income or benefits from UK-based financial activity, including rental payments.
What This Means for Letting Agents and self managing landlords
From now on, letting agents must:
- Verify the identity of all new tenants, guarantors, and landlords.
- Screen each individual against the UK’s consolidated sanctions list.
- Submit a report to OFSI immediately if a match is found or if there is reasonable cause for suspicion.
- Maintain full records of all checks carried out as part of compliance audits.
This process must happen before a tenancy agreement is signed or funds are transferred. It applies across the board — to single lets, HMOs, student properties, and even corporate tenancies.
What This Means for Landlords
Although the responsibility for conducting these checks lies with us as your letting agent, there are a few key implications you need to be aware of:
1. You Will Need to Provide Valid ID
We’ll now request official identification documents as standard when onboarding new landlords or renewing tenancy agreements. This ensures we can perform the checks correctly and keep accurate compliance records.
2. No Lettings Without Checks
Properties can’t be marketed or let without first completing these compliance steps. This could affect timelines if documentation is delayed or if additional checks are required.
3. You Need to Use a Compliant Letting Agent
Failure to carry out proper checks can lead to serious legal consequences. Letting agents who skip this process or fail to report a match can face:
- Unlimited financial penalties
- Criminal prosecution
- Bans from operating in the sector
By using Front Door Lettings, you’re working with a fully compliant agent who meets and exceeds these new requirements.
How Front Door Lettings Handles This for You
To ensure complete compliance and peace of mind, we’ve automated this process inside our referencing and onboarding systems. Here’s how we handle it:
- ✅ Automated screening of all tenants, guarantors, and landlords at the start of the process.
- ✅ Bulk portfolio checks for landlords with multiple properties or blocks.
- ✅ Instant alerts if anyone involved is flagged during screening.
- ✅ 12-month monitoring – if someone is added to the sanctions list mid-tenancy, we’re notified automatically.
- ✅ Audit trail ready – our records are securely stored and available if ever needed for review.
This means you don’t need to do anything extra — we take care of the legal obligations for you.
The Bottom Line
These new sanctions checks aren’t optional – they’re now part of the legal framework of letting property in the UK. As a landlord, the best step you can take is to work with a local letting agent that understands the law, follows correct procedures, and protects your investment. Our Fully Managed letting plan will help keep you and your property compliant and on the right side of the ever changing laws.
At Front Door Lettings, we’re not just reacting to these changes — we’re ahead of them. Our systems are in place, our team is trained, and we’re committed to keeping your property business safe, legal, and hassle-free.
If you’d like to speak with us about how these changes affect you or your portfolio, get in touch today.
