It’s no secret that the lettings industry has seen wave after wave of legislative updates in recent years and 2025 is no different. One of the more quietly introduced but incredibly important changes that agents and landlords alike need to be aware of is the increased focus on sanctions checks.

This change hasn’t made front-page headlines, but it’s a serious shift in compliance expectations and one we at Ask Lavinia Ltd have already taken proactive steps to implement. So, what does this mean for you as a landlord, tenant, or property investor? Let’s break it down.

What Are Sanctions Checks?

Sanctions checks are screenings carried out against government-issued sanctions lists typically for anti-money laundering (AML), counter-terrorism financing, and international compliance purposes. These lists are regularly updated and identify individuals or entities subject to restrictions, such as asset freezes or trading bans.

Previously, these checks were primarily seen in financial institutions or for high-value transactions. But now, letting agents are being pulled into the compliance net especially if they’re handling client funds or working with overseas landlords or tenants.

What’s Changed?

As of early 2025, updated guidance from HM Treasury and the Office of Financial Sanctions Implementation (OFSI) has clarified that letting agents must perform sanctions screening on both:

• Tenants at the application stage
• Landlords before onboarding or managing a property

This includes private individuals as well as companies. The rationale is simple: letting agents handle significant financial transactions and are now expected to help prevent sanctioned individuals from benefitting from UK property assets — either through rental income or accommodation.

 

 What We’ve Done Internally

At Ask Lavinia Ltd, we don’t wait to be told twice — or worse, caught out after the fact.

Here’s how we’ve responded:

• New Screening Protocols: We’ve embedded sanctions screening into our onboarding processes for both tenants and landlords. Every individual or entity is now checked against the latest OFSI sanctions list at the start of our engagement.
• Staff Training: All team members have been briefed on the new requirements, with additional training rolled out to ensure we not only comply but understand why these checks matter.
• Policy Update: Our terms of business and application processes have been revised to reflect this new requirement transparently.

 

Why This Matters

If you’re a landlord:

• Failure to screen could result in hefty fines or even criminal liability if you’re found to be transacting with a sanctioned individual or entity.
• Working with a compliant letting agent protects you and your investment from unintentional breaches.

If you’re a tenant:

• Don’t worry — this isn’t about catching you out. It’s about ensuring transparency and alignment with UK financial regulations.

If you’re an investor:

• These checks add an additional layer of security when letting property in the UK, especially for portfolios with international ties.

 

Our Compliance Promise

At Ask Lavinia, we’ve always gone beyond the legal minimum — and this is another example of us staying ahead of the curve, so you don’t have to. Compliance isn’t just about ticking boxes. It’s about protecting our clients, our reputation, and the integrity of the property industry.

If you’re a landlord or investor and you’re unsure whether your current agent is performing these checks — now’s the time to ask the question. And if you’re looking for a letting partner who gets things done properly, we’re here for you.

 

Got questions about how this affects you?
We’re happy to talk you through it — just reach out via our Contact Page or call us directly on 0117 973 9034 or drop us an email at [email protected]