From 14 May 2025, new UK rules made AML (anti-money laundering) checks mandatory for letting agents — not just for high-value properties, but for all tenancies regardless of the level of monthly rent. These changes mark a significant shift in the lettings industry, and failing to comply can carry serious consequences as part of a global crackdown on AML compliance.
Financial sanctions guidance for letting agents (GOV.UK)
In this post, we will explore the latest regulatory changes, the risks involved letting without AML compliance, and how LetHQ’s instant True AML checks service help agents and landlords stay secure.
Previously, anti-money laundering obligations for letting agents were limited, applying to tenancies with a certain monthly rent fresh hold. The threshold for mandatory checks has now been removed, meaning that every prospective tenant, guarantor, and landlord must be screened. This includes verifying identity, checking for politically exposed persons (PEPs), reviewing the UK sanctions list, and screening against the SDN/OFAC lists.
If a match is found, agents must report this themselves to the Office of Financial Sanctions Implementation (OFSI). The expansion of AML obligations reflects the government’s efforts to close loopholes and prevent the property market from being used to launder money or hide illicit funds.
Failing to comply with these rules can lead to serious consequences, including fines from £1,500 to over £50,000, regulatory sanctions, and reputational damage. In extreme cases, knowingly ignoring AML obligations could also result in legal action.
AML checks are not just a regulatory formality — they protect your business and clients. Screening tenants and landlords mitigates the risk of onboarding individuals involved in financial crime, giving your agency confidence that all parties are legitimate. Demonstrating robust compliance also strengthens your reputation and builds trust with landlords, tenants, and investors.
Additionally, integrating AML checks into your onboarding process is now essential along with vetting applicants, automated checks produce instant results, freeing up staff to focus on other areas of property management.
While compliance is the legal driver, the operational and reputational benefits make AML checks a smart business practice.
LetHQ offers a simple and effective solution for staying compliant with the new AML regulations. With LetHQ, you can run a full true AML check quickly and easily online with minimal data input in a frictionless way without the need to involve the tenants themselves. Checks include identity verification, PEP and sanctions screening, and SDN/OFAC list checks. Results are delivered instantly in a secure PDF report, ensuring you have a clear record of compliance.
The platform also supports bulk uploads, allowing you to bring your existing tenant and landlord records up to date. With ISO 27001 certification, LetHQ ensures your data is handled securely and according to best practice. No need to top up or by credits, you only pay for the checks you submit, without the need for any set up charges or monthly or annual subscription misery.
By integrating LetHQ’s AML checks into your workflow, you reduce risk, simplify compliance, and demonstrate professionalism to your clients.
Letting agents and landlords should adopt a structured approach to AML compliance. First, checks should be completed as soon as a tenancy offer is accepted or when a landlord engages your services. Early verification ensures that no parties involved in financial crime slip through the process. Updating your AML and compliance policies ensures that procedures remain clear and aligned with the latest regulations.
By embedding AML checks into everyday operations, agencies and landlords can reduce legal risk, protect their reputation, and operate with confidence in a changing regulatory landscape.
Unlike some other providers, in line with FCA guidance this is not just a random name search against various sanctions and PEP lists. This is a true AML check that first looks to verify the individuals is who they say they are by confirming their identity prior to conducting the mandatory checks.
The 2025 AML regulations represent a pivotal moment in the UK rental market. Compliance is no longer optional, and the consequences of failing to act are serious. LetHQ’s true AML check service makes compliance simple, cost-effective, and secure, allowing agents and landlords to focus on growing their business while reducing risk.
Now is the time to integrate AML checks into your workflow. By doing so, you safeguard your agency, protect your clients, and stay ahead of regulatory obligations. LetHQ ensures that staying compliant is easy, fast, and reliable.
For more information on how we can support you and your business visit LetHQ or call 0343 612 2233 today.
Carrying out Right to Rent checks is a legal requirement for all landlords and letting agents. Whether you manage one property or a large portfolio, ensuring these checks are done properly protects you from penalties and keeps your lettings process compliant. At LetHQ, we help landlords and agents handle these checks efficiently through digital tools and clear guidance.
The Right to Rent forms part of the Immigration Act 2014 and requires landlords and agents to confirm that every adult tenant has the legal right to live in the UK. This applies to everyone who will live in the property, even if they’re not named on the tenancy agreement.
The purpose is to prevent tenancies being granted to individuals without lawful immigration status. While the concept is simple, understanding documents, online checks, and follow-up requirements can feel complex — which is why having a reliable process in place is essential.
Completing Right to Rent checks gives you a statutory excuse, meaning you are protected from penalties if a tenant’s immigration status later becomes unlawful. The checks must also be carried out fairly and consistently to avoid discrimination, so landlords should apply the same process to all applicants.
Beyond legal compliance, a smooth and well-documented process improves the tenant onboarding experience, reduces delays, and strengthens professional standards.
Checks must be completed before the tenancy starts. There are three valid ways to conduct them:
1. Manual Document Checks
Manual checks involve reviewing relevant original documents and you must ensure the documents appear genuine, photos and dates match the tenant, and names are consistent. Copies must be kept for the duration of the tenancy and one year after it ends.
2. Online Right to Rent Checks
Many tenants now hold digital immigration status. Using a share code provided by the tenant, landlords can verify their right to rent through the official Home Office online service. This method provides a clear, real-time confirmation that you should download and store as evidence. For more information view the .gov website for official guidance:
3. Landlord Checking Service (LCS)
If a tenant has an ongoing Home Office application or appeal and cannot provide documents, landlords can request a decision from the LCS. A positive response gives you a statutory excuse.
4. Approved IDVT Digital Check
Using UK government approved IDVT checks such as those offered by LetHQ. Our solution, designed to cut through the clutter and simplify your life. Using advanced UK Government certified Identity Document Validation Technology (IDVT), we bring you a seamless, paperless, and efficient system for verifying the right to rent status of British and Irish tenants. Please see our website for further details - Let HQ.
For tenants with a time-limited right to rent, landlords must complete follow-up checks. These take place when the tenant’s immigration permission expires or 12 months after the previous check — whichever is later.
If a tenant no longer has the right to rent during a follow-up check, landlords must report this to the Home Office to remain compliant.
Right to Rent checks must be completed in a non-discriminatory way. Agents and Landlords cannot make assumptions based on nationality, language, ethnicity, or appearance. Every tenant must be asked to provide the same type of evidence and go through the same checking process.
Providing clear instructions to all applicants keeps the process transparent and avoids unintentional bias.
Some applicants struggle to provide documents promptly, or may present expired share codes. Others may be unfamiliar with digital status or unsure how to access their Home Office records. Agents and Landlords also frequently encounter missing Right to Rent documentation when taking over a tenancy from another landlord.
If previous records can’t be produced, new checks should be completed immediately.
LetHQ offers fast, simple Digital Right to Rent Checks to help landlords and agents stay compliant without the administrative hassle. Our service allows you to:
Achieve compliance in just three simple steps, with minimal effort on your part:
1. Initiate the Process: Send an email link for the tenant to complete online. That’s the only email you’ll need to send.
2. Tenant Participation: The tenant conducts the necessary checks via their smart device. They follow clear, concise instructions - no paperwork involved.
3. Receive Results: Detailed results, including all required documentation and verification statuses, are sent directly to your email. No follow-ups needed, no stress.
LetHQ’s Digital Right to Rent Checks are designed for letting agents and landlords who value both compliance and convenience. Our checks help you to stay compliant with ease and give total peace of mind. For further details visit www.LetHQ.co.uk or call 0343 612 2233 today.
Subject to tenants passing the relevant criteria, as out lined in the policy booklet, the process is simple and straightforward to apply online. Policy documentation can be found on our website located at https://lethq.co.uk/service/rent-guarantee-insurance/
What sets LetHQ apart is their commitment to fast, reliable service. With a track record of award-winning performance and ISO27001 data security certification, you can trust that your information is secure.
Rent guarantee insurance is a type of insurance for landlords which can cover your rental income if your tenants become unable to pay their rent. We offer the most cost effective and competitively priced rent protection insurance. It's tailored for letting agents and landlords. We offer a variety of features and more benefits than other rent guarantee insurance policies. A tenant falling into rent arrears can cause financial challenges for landlords. Rent guarantee insurance gives landlords a safeguard should their tenants fall behind on their rent payments.
All our rent guarantee policies come with no excess so there is nothing to pay should you need to make a claim. This product is available to purchase as a standalone product but can also be added on to our landlord building insurance.
As an added bonus, if you take out rent guarantee insurance as part of a landlord buildings insurance policy with us, we'll apply an exclusive discount!
This protection is especially valuable for landlords and agents as it removes the financial stress of potential defaults and helps maintain a steady income stream from your property portfolio.
By choosing LetHQ, you’re not just buying insurance—you’re investing in peace of mind. With affordable pricing starting from just £160 a year, make it a practical solution for landlords and all agents of all sizes. Whether you manage one property or a large portfolio, LetHQ’s rent guarantee insurance ensures you’re backed by a trusted, award-winning service that truly understands the needs of landlords across the UK.
When you’re a landlord, your property is more than just an asset — it’s a source of income and potentially a long-term investment. But without proper precautions, even the most carefully chosen tenants can lead to unexpected financial strain. That’s where tenant referencing becomes an essential part of your property management strategy.
Tenant referencing is the process of verifying a prospective tenant’s credit worthiness, financial stability, employment status, and rental history. It’s not just about checking a few boxes — it’s about safeguarding your property and your peace of mind. A thorough referencing process can reveal red flags that might otherwise go unnoticed, such as previous rent arrears, employment instability, or a history of damaging property and adverse credit information.
Consider this scenario: You’re renting a property to someone who seems ideal on paper. They have a steady job, a good credit score, and a positive reference from their last landlord. But during the referencing process, you discover they’ve had multiple tenancy issues in the past — including unpaid rent and disputes with previous landlords. This information could save you from a costly and stressful situation down the line.
The risks of not conducting proper tenant referencing are significant. Landlords face the possibility of rent arrears that can last months or even years, property damage that may not be covered by standard insurance, legal costs associated with eviction proceedings, time and stress spent managing disputes along with the potential for tenancy fraud or an illegal sublet.
By investing in comprehensive tenant referencing, you’re not just protecting your property — you're also protecting your finances. It’s a small upfront cost that can prevent major losses in the future. LetHQ offers a range of referencing options tailored to your needs, including Express, Advanced, Guarantor, and Company references. Each option provides detailed insights into a tenant’s reliability, ensuring you make informed decisions.
With LetHQ’s fast turnaround times, expect results from within on hour, you can move quickly on the best candidates without compromising on accuracy. This efficiency is especially valuable in competitive rental markets where delays can mean losing a quality tenant. The real benefit of robust tenant referencing lies in its ability to reduce risk before it becomes a problem. When you take the time to verify a tenant's background, you’re taking control of your investment.
This sets the stage for understanding how rent guarantee insurance can provide an extra layer of protection — especially when combined with thorough tenant referencing.
Choosing the right rent guarantee insurance can feel overwhelming, especially with so many providers on the market. However, when you're a landlord or letting agent, the stakes are high — and the wrong choice could leave you exposed to financial loss. LetHQ stands out in this space not just because of its award-winning reputation, but because it delivers on what matters most: peace of mind, reliability, and comprehensive protection.
Let’s break down why LetHQ is a trusted partner for thousands of landlords and letting agents across the UK. First, consider the legal cover. Many policies come with high excesses or complex terms that make claims difficult. LetHQ offers up to £100,000 in legal cover with no excess as standard, meaning you’re fully protected should the worst happen. That’s a major advantage, especially when you're dealing with costly legal proceedings or disputes over tenancy agreements.
Let’s look at a real-life example. A landlord in Birmingham was faced with a tenant who stopped paying rent and left the property in a state of disrepair. Thanks to LetHQ’s rent guarantee insurance, the landlord didn’t have to cover the costs personally. The insurance paid out directly, and the legal support helped resolve the situation without prolonged stress or financial strain.
What sets LetHQ apart is its commitment to transparency and affordability. There are no setup fees, no monthly charges, and no hidden costs. You only pay for the services you use, making it accessible for both individual landlords and larger letting agencies.
Ultimately, investing in the right rent guarantee insurance is about protecting you and your clients portfolio, not just your property. With LetHQ, you’re not just buying a policy — you’re investing in a trusted partner with over 10 years in the business, that understands the complexities of the UK rental market and delivers solutions that work for you.
To obtain your no obligation quote visit https://lethqlogin.co.uk/InsuranceQuote/RentProtection today.
The bill passed the House of Commons in April 2024 and is now in the House of Lords, where it faces five more stages before potentially receiving Royal Assent to become law.
The headline provision of the bill is the proposed abolition of Section 21 "no-fault" evictions. However, it contains many other reforms that would impact tenants, landlords and letting agents.
These include:
While the government is pushing to get the bill passed quickly, it still faces some hurdles. A group of around 50 Tory MPs have threatened to vote against it unless certain concessions are made, such as delaying the Section 21 ban until the courts system is improved. There are also claims of a potential loophole that could allow some Section 21 evictions to continue even after the ban takes effect.
If enacted, the Renters (Reform) Bill has the potential to significantly rebalance power between tenants and landlords. Renters would enjoy more stability and flexibility to make their rental property a long-term home. They would have expanded protections against unfair evictions and poor living conditions. However, some landlords worry the changes could make it harder to remove problem tenants. The effectiveness of the reforms will depend on the details of implementation and ensuring the court system can handle a likely increase in possession cases.
In light of these upcoming changes, it is more important than ever for landlords and letting agents to thoroughly vet prospective tenants. LetHQ's professional tenant referencing services can help you select reliable, low-risk renters. Our comprehensive reference checks verify the identity, credit, and rental history of applicants. Choosing the right tenant from the start can prevent many potential issues down the road.
For added peace of mind, consider LetHQ's Rent Guarantee Insurance. Our policies protect your rental income even if the tenant fails to pay, so you can avoid arrears and costly evictions. With the private rental sector poised for transformation, taking these prudent steps to reduce risk is simply smart business.
