Strict new financial sanctions regulations are now in force – and they directly impact how letting agents, landlords and tenants operate in the rental market.
Whether you're renting out a property in Stockport, or looking to move in as a tenant, here's a quick overview of what’s changed, who it affects, and how you can stay compliant without stress.
What are the new financial sanctions rules?
These rules are part of the UK Government’s approach to tackling global threats, such as terrorism, corruption and hostile regimes.
The Office of Financial Sanctions Implementation (OFSI) – part of HM Treasury – maintains a list of people and organisations under financial sanctions. These individuals are restricted from doing business in the UK, and their assets may be frozen.
As of 14 May 2025, letting agents must now check whether landlords or tenants appear on this list before proceeding with a tenancy of one month or more, regardless of the rent value.
(Estate agents were already covered by these regulations – this new update extends that duty to lettings.)
What this means in practice
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Letting agents must now verify the identity of both landlords and tenants to ensure they are not on the sanctions list.
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These checks apply to all new tenancies, including renewals and agreements lasting one month or longer.
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Around 2.9 million rental properties in the UK could be affected by this update.
What landlords and tenants need to do
If you're using a professional letting agent (like Spencer Harvey), there’s nothing extra you need to do.
We’ll handle the necessary due diligence and identity verification. However, we may need to:
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Request personal identification or documentation
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Ask for additional information to meet legal requirements
Please don’t be alarmed – these checks don’t suggest wrongdoing. They’re simply a legal obligation under the new financial sanctions rules.
Failure to comply could result in fines or even criminal charges for agents.
At Spencer Harvey, we stay ahead of all regulatory changes so that you don’t have to. Our experienced lettings team ensures that compliance, professionalism and your peace of mind remain top priorities.
???? Thinking of letting a property in Stockport? Contact our expert team today to learn how we can help you stay compliant and successful in the evolving rental market.
Know a landlord or tenant who should be aware of these changes?
Share this article with them – it could save confusion and legal headaches.