New Financial Sanctions Rules: What Landlords and Tenants Need to Know

Best Nest Properties is Fully Prepared for the May 14, 2025 Changes

Today, 14 May 2025, marks an important milestone for the property industry as new financial sanctions rules come into effect for letting agents across the UK.

These updated government regulations are designed to prevent individuals or organisations on the UK sanctions list from accessing the UK housing market - a significant change with serious implications for compliance.

 

But here's the good news: for the vast majority of landlords and tenants in Crewe and Stoke-on-Trent, this won't cause any disruption to your property journey.

At Best Nest Properties, we've been working diligently behind the scenes to ensure full compliance well in advance of today's deadline. Our systems are ready, our team is trained, and we're prepared to continue providing the seamless service you expect from us.

What Has Actually Changed for Our Tenants and Landlords?

From today, letting agents like Best Nest Properties are classified as "relevant firms" under UK financial sanctions law - joining residential sales agents and other businesses already subject to these regulations.

Our new legal duties include:

• Checking the government's sanctions list when agreeing new tenancies or landlord instructions
• Reporting any matches to the Office of Financial Sanctions Implementation (OFSI)
• Refusing to proceed with transactions involving anyone on the sanctions list

This is a strict legal requirement that applies even if the landlord or tenant is unaware they're on the list. For letting agents, the legislation operates on a "strict liability" basis - meaning we face prosecution for any oversights, even unintentional ones.

What This Means for Landlords in Crewe and Stoke-on-Trent

As a landlord with Best Nest Properties, you may be asked for additional ID or verification when we first onboard your property - particularly if you've recently moved to the UK or have overseas business interests.

While we're not legally required to verify ID for every client, we've chosen to take a proportionate yet cautious approach to protect everyone involved. This means:

• Full name checks against the official UK sanctions list
• Identity verification in cases of uncertainty
• Quick, discreet processes designed to maintain your privacy

These measures ensure we can continue offering you our trusted property management services with complete confidence.

What This Means for Tenants in Crewe and Stoke-on-Trent

If you're looking to rent through Best Nest Properties, you may notice one or two additional checks during the application process - especially if you're a first-time renter or have a non-UK background.

The reality is:

• Most tenants won't notice any difference
• Checks are quick, non-intrusive, and confidential
• The process integrates seamlessly with our existing referencing system
• If you've rented with us before, it will feel familiar

Think of it as an additional compliance step - just like Right to Rent checks or referencing.

How Best Nest Properties is Staying Compliant

We've invested in comprehensive preparation to ensure these new rules don't impact your experience:

✅ Full team training on the new regulations and procedures ✅ Updated systems using specialist software for accurate, instant screening ✅ Secure record-keeping of all compliance checks ✅ Enhanced privacy policies reflecting our new obligations ✅ Clear procedures for recognising, reporting, and managing any potential matches

We're committed to these changes because they protect the integrity of the housing market - and we're proud to do our part.

Your Privacy Remains Our Priority

These sanctions checks are a legal requirement, not a matter of consent. However, we remain absolutely committed to handling your data sensitively and securely, in full compliance with our privacy policy.

The Bottom Line

The changes are largely behind the scenes. Whether you're letting your property with us or searching for your next home in Crewe or Stoke-on-Trent, you can trust that Best Nest Properties has everything covered.

We're fully compliant, completely prepared, and committed to protecting both your privacy and your interests.

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Frequently Asked Questions

1. What are financial sanctions in property?

Financial sanctions are legal restrictions on individuals or organisations linked to terrorism, war, or serious financial crime. Anyone on the UK sanctions list cannot legally rent or manage UK property.

2. Who gets checked under these new rules?

We screen all parties involved in rental transactions:

• Landlords
• Tenants
• Guarantors
• Joint owners or tenants (where applicable)

3. What happens if someone appears on the sanctions list?

If there's a match, we must immediately notify OFSI and cannot proceed with the transaction. Non-compliance can result in significant penalties.

4. Is this the same as anti-money laundering checks?

No. While AML rules apply to higher-value properties, sanctions rules apply to all letting agents regardless of property value or location.

5. Will I need to provide ID?

Not always, but sometimes. We use a risk-based approach - if we need to verify identity to rule out a potential match, we will. The process is quick and secure.

6. I've already passed referencing - do I need another check?

Yes. Sanctions checks are separate from referencing and Right to Rent checks. All three serve different compliance purposes.

7. Do I need to consent to sanctions checks?

No. This is a legal obligation, not a consent-based process. However, we handle all data securely and in line with data protection regulations.

8. How is Best Nest Properties ensuring compliance?

We've implemented specialist software, comprehensive staff training, and updated procedures to screen every person involved in rental transactions accurately and confidentially.

9. Will this affect my tenancy application?

For most people, not at all. Checks happen quickly in the background and only cause delays if there's a positive match.

10. What if I have more questions?

We're here to help! Our team is ready to answer any questions about these new rules and how they might affect you.

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Have Questions? Contact Best Nest Properties

📞 01234 480881
📧 info@bestnestproperties.co.uk
📍 220 West Street, Crewe, CW1 3HN

Your trusted property partner in Crewe and Stoke-on-Trent - fully compliant, completely prepared, and committed to your success.