The new rules that need to have agents check whether potential landlords and tenants appear on the UK national financial sanctions list will begin tomorrow (May 14).
As part of the change, make sure the agents have to report lists or concerns to the Office of Financial Sanctions Implementation.
For all potential landlords and tenants, sanctions checks are required. Having agents have to screen landlords during formal guidance periods means verifying the landlord’s identity and checking the government’s consolidated sanctions list before any property-related activities are conducted.
For tenants, once the landlord accepts the rent, the agent will be required to conduct sanctions inspections on the potential tenants to ensure that no lease agreement is entered into with the approved individual or entity.
Previously, these checks were only required if the monthly rent was over €10,000 (£8,275).
By removing the threshold, the government’s goal is to bridge the loopholes and ensure that individuals without approval can sign rent agreements.
Goodlord quoted Nishma Parekh’s director as saying: “This week is crucial to getting agents. The new rules surrounding sanctions checks represent a major shift in the industry, and it would be easy to make agents foul unconsciously.”
“Every landlord and tenant, regardless of the rent value, must undergo a sanctions check. One in five landlords feel unprepared for these changes, and it is crucial that they immediately include the ducks if they want to keep the right side of the right.”
“If they don’t comply – even if it’s a real mistake, they could face fines of up to £1 million.”
