New AML Rules for lettings agents effective from May 2025

 

 There are some important changes landing this spring that will effect the way we as letting agents operate—and we want to keep our landlords in the loop. From 14 May 2025, new Anti-Money Laundering (AML) and financial sanctions rules come into force. It might not sound like the most glamorous headline, but these changes will have a real impact on the lettings industry—and self-managing landlords. The good news? At David Andrew, we’re already making the necessary adjustments to ensure our landlords stay fully compliant.

 

 

What's changing? And how is this different from before?

Until now, AML checks only applied to letting agents when dealing with high-value tenancies—specifically, those where the monthly rent exceeded £10,000. So, for many lettings agents, these checks weren’t part of the day-to-day.

But from May 2025, that all changes.

Under the new rules:

• All letting agents must carry out financial sanctions checks on every tenancy, regardless of rent level. 
• There’s no minimum threshold anymore—all landlords and tenants must be screened, even for modest rental properties
• Agents will also be required to conduct ongoing monitoring, report suspicious activity, and keep detailed records to prove compliance

The financial sanction checks include: 

• Screening all landlords and tenants against the UK’s financial sanctions list
• Verifying ID and financial info for every party involved in a tenancy
• Reporting any suspicious activity to the Office of Financial Sanctions Implementation (OFSI)
• Keeping detailed records of the whole process

And yes—this applies to every single tenancy, regardless of the rent level.

What This Means for Landlords

For landlords who self-manage these new rules mean more admin, more risk, and a serious need to stay on top of ever-tightening regulations.

Get it wrong, and the consequences aren’t small: heavy fines and even criminal penalties are possible for serious breaches.

That’s why working with a compliant, well-informed agent matters more than ever.

What We're Doing at David Andrew

At David Andrew, we’re already ahead of the curve. We’ve been preparing for these changes well in advance, and we’re updating our systems and internal policies to stay fully compliant.

Here’s what we’re doing:

• Strengthening our AML and sanctions screening process 
• Providing further staff training to meet the updated obligations
• Updating how we verify identities and financial documentation at the point of new tenancies, renewals and variations of contract. 
• Ensuring our record-keeping is airtight and audit-ready

All of the above steps ensure us as a company and our landlords’ current and future tenancies are protected come May 14^th.

These new rules are a timely reminder that letting a property isn’t just about finding a tenant and collecting rent. It’s about running a legally compliant, professional service.

Fortunately, our landlords don’t have to worry about any of this. We handle:

• Every compliance check
• The admin, paperwork, and reporting
• And, most importantly—keeping you legally protected

We know regulation changes like this can sound daunting, but at David Andrew, we’re not just reacting to updates—we’re staying ahead of them. Our landlords trust us to manage their properties safely, smoothly, and professionally, and we take that responsibility seriously.

If you’re with us already a landlord working with us —great news, you’re in safe hands.

If you’re not and want to know more about how we can help you stay protected, give us a call. We’re always here to talk.

Speak to our team today—we’ll help you stay compliant, confident, and completely stress-free.

 

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