From 14 May 2025, new UK regulations will require estate and letting agents in London—and across the country—to carry out sanctions checks on all landlords and tenants involved in new tenancy agreements. These checks form part of a wider government strategy to tackle financial crime, protect national security, and uphold the integrity of the UK property market.
If you’re renting or letting a property, here’s what you need to know.
What Are Sanctions Checks?
Sanctions are restrictions placed on individuals, companies or countries involved in serious offences such as terrorism, corruption, or human rights violations. The UK’s Office of Financial Sanctions Implementation (OFSI) maintains a list of those subject to financial sanctions.
From May 2025, letting agents must check this list before proceeding with any new tenancy to ensure that no parties involved are subject to sanctions.
Who Will Be Checked?
Agents must now carry out sanctions checks on the following individuals:
⦿ Tenants – Anyone applying to rent a property
⦿ Landlords – Anyone letting out a property
⦿ Guarantors – Anyone guaranteeing rent or responsibilities on behalf of a tenant
⦿ Permitted Occupiers – Adults who will live in the property but are not named on the tenancy agreement
These checks apply to all new tenancy agreements that begin on or after 14 May 2025.
When Will the Checks Take Place?
Sanctions checks must be completed:
⦿ Before entering into a tenancy agreement
⦿ Before accepting a holding deposit
⦿ Again, if there is a significant delay or renewal
⦿ As part of ongoing monitoring, if necessary
If you are entering into a new tenancy—either as a landlord or tenant—these checks will be a standard part of the process.
What Happens if There’s a Match?
If someone’s name appears on the UK sanctions list:
⦿ The letting agent is not allowed to proceed with the tenancy
⦿ The potential match must be reported to OFSI
⦿ Any associated financial transactions (such as deposits or rent payments) must be paused
This is a legal requirement. Proceeding without clearance could result in serious consequences for the agent and the landlord.
Is This the Same as a Right to Rent or AML Check?
No. Sanctions checks are a separate legal requirement from:
⦿ Right to Rent checks – which confirm a tenant’s legal right to live in the UK
⦿ AML (Anti-Money Laundering) checks – typically required when selling or letting high-value property
Even if you’ve passed these other checks, you will still need to undergo a separate sanctions check.
What If You Already Have a Tenancy?
If your tenancy started before 14 May 2025, there is no need for a retrospective check.
However:
⦿ If you renew the tenancy agreement (even with the same tenants or landlord), a new sanctions check must be conducted
⦿ If a new party is added—such as a new tenant or landlord—they must also be checked
⦿ If you move to a new property after this date, the check will be required as part of the new agreement
How Will My Information Be Used?
Your details will be checked against the OFSI sanctions list. Unless a match is found:
⦿ The check will not affect your application
⦿ No further action will be taken
⦿ Your information will be securely stored to show the check was completed
If a match is found, your agent is legally required to report it and pause all tenancy proceedings until further guidance is received.
Can Agents Check the Sanctions List Manually?
Technically, yes—but it is not recommended.
The UK’s sanctions list is lengthy, updated frequently, and contains many similar or foreign names. Manual checks:
⦿ Are time-consuming
⦿ Carry a high risk of human error
⦿ Can lead to incorrect matches or missed entries
Most letting agents, including Bluestone Properties, use automated tools that check names against the official list quickly and accurately, reducing delays and legal risk.
Why Is This Important for Tenants and Landlords?
These rules are not just bureaucratic. The consequences for non-compliance are serious:
⦿ Fines of up to £1 million
⦿ Possible criminal charges
⦿ Delays, lost deposits or tenancy cancellations
⦿ Reputational damage for landlords and agents
By following the correct process, tenants and landlords can protect themselves and avoid potentially costly delays.
Will There Be a Grace Period?
No. The new rules apply from 14 May 2025 without exception. All parties involved in a new tenancy must be screened before any agreements are signed or deposits are taken.
How Can You Prepare?
Whether you’re a landlord or a tenant:
⦿ Be ready to provide accurate personal details and ID
⦿ Respond promptly to any requests for further information
⦿ Ask your letting agent if they are prepared for the new compliance rules
Landlords should ensure their chosen agent is already using automated screening tools and understands the new requirements.
Why Work with Bluestone Properties?
Bluestone Properties has already implemented fully compliant systems to meet the new sanctions regulations. Whether you are letting out your home or moving into a new one, we will make sure your tenancy stays compliant, secure, and hassle-free.
We offer:
⦿ Automated sanctions screening for landlords and tenants
⦿ Secure data handling and full record-keeping
⦿ Expert compliance support
⦿ End-to-end property management services tailored for the London market
Get in Touch
If you are unsure about what the new sanctions rules mean for you, Bluestone Properties is here to help. We’ll take care of the checks, so you can focus on your move with confidence.
Contact Bluestone Properties today to find out how we can make sanctions compliance easy and stress-free.
