Introducing Landlord Sanctions Checks: What You Need to Know

By Sarah Croft | March 11, 2025 | Compliance, News, Right to Rent

With effect from 14th May 2025, significant changes will affect how letting agents in the UK manage landlord and tenant checks, specifically sanctions checks. From that date, letting agents will be required to adhere to the same reporting obligations as other “relevant firms” under financial sanctions laws. These obligations will apply regardless of the rental agreement value.

What are Sanction checks? 

Sanctions checks involve screening individuals, companies, and organisations against official lists of those subject to financial sanctions. These sanctions can be imposed by the government for reasons such as involvement in illegal activities, breaches of international law, or violations of human rights.

The UK government, through the Office of Financial Sanctions Implementation (OFSI), maintains an updated list of sanctioned individuals and organisations. Letting agents will be legally required to conduct these checks before facilitating any rental agreement. If a landlord or tenant appears on the sanctions list, the agency must take the necessary steps, including reporting to the OFSI and potentially halting the letting process.

What happens if a letting agent or landlord fails to conduct sanctions checks?

Non-compliance with these regulations could have serious consequences, including:

• • Fines and Legal Action: Failure to perform sanctions checks could result in significant fines or even legal action.
  • Reputational Damage: Landlords who rent to individuals or organisations on the sanctions list may face reputational harm and could be held accountable for facilitating illegal activities.

How can you conduct sanction checks? 

Landlords and letting agents have two main options for conducting sanctions checks: manually or through automated services.

1. Manual Checks: This involves accessing the publicly available sanctions list and manually entering tenant details to check for matches. While it’s possible, this process can be time-consuming and prone to errors, especially when dealing with common names or missing unique identifiers.
2. Automated Checks: For a quicker and more reliable solution, automated sanction check services can be used. These services streamline the process, reduce the risk of human error, and ensure full compliance.

How can TrustID help?

At TrustID, we can include an automated PEPs & Sanctions check as part of our identity validation and Right to Rent services. This allows you to verify your applicant’s identity using a government-issued ID, combined with facial match verification, before conducting the sanctions check.

Conclusion

While the changes coming in May 2025 may require some extra effort, they ultimately help landlords and letting agents maintain a secure, lawful rental process. By ensuring that tenants are not on sanctions lists, you’re not only protecting your business but also your reputation and your tenants.

If you’d like more information on this guidance, please visit the Government website or to discuss how to implement these checks for your organisation, please contact our team.

This blog is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.