Destination Services update — Anti-money laundering (AML) and sanctions update for UK rental leases Effective 14 May 2025

New regulations are being introduced that will affect all rental leases in the UK—both new and renewing—including personal and company tenancies.

Key changes

From 14 May 2025, updated AML regulations and new financial sanctions laws will:

• Apply AML checks to all rental properties, regardless of monthly rent
• Require checks on tenants, occupants, and landlords
• Introduce stricter rules around third-party payments (e.g. individuals not named on the lease may no longer be allowed to pay rent)
• Increase compliance obligations for letting agents and clients

Screening requirements

Letting agents will be required to screen all parties against the UK Government’s Consolidated List of Financial Sanctions Targets and retain certified records for at least five years.

What documents will be required?

For individuals:
At least one photo ID plus proof of address:

• Valid passport
• UK photocard driving licence (with current address)
• EEA/Swiss national ID card
• Utility bill (within three months)
• Bank or building society statement (within three months)
• Council tax bill (current tax year)
• Mortgage statement (within 12 months)

For companies:
All of the following:

• Certificate of Incorporation
• Latest Companies House Confirmation Statement
• Details of directors and shareholders with over 25% control
• Personal ID and proof of address for all directors and beneficial owners

Impact on clients

Personal leases:
Minimal changes. Most agents already require two forms of ID. However, screening against the sanctions list may delay lease processing and move-in dates.

Company leases:
Significant administrative increase. The full list of corporate documents will be required, along with ID for directors and beneficial owners, and sanctions screening for all parties. Processing times may increase.

Recommended action

We recommend reviewing your current leasing approach—particularly for corporate tenancies. Where appropriate, consider placing leases under the relocating employee’s name to:

• Reduce documentation
• Avoid ID requirements for directors and shareholders
• Speed up the compliance process

Note: Existing company leases may not be eligible for restructuring at renewal without renegotiating lease terms and rental values.

Also coming: The Renter’s Rights Bill

This upcoming legislation will increase protections for personal leases, including:

• Secure, long-term leases
• Restrictions on forced evictions
• Stricter landlord regulations
• Protected deposits

Using the relocating employee’s name on the lease may help align with these future protections.

Questions or concerns?

If you have any questions about how these changes may affect your leasing arrangements, please do not hesitate to contact your local Santa Fe Relocation consultant.

Katie Stedman
Head of DSP UK
Santa Fe Relocation
katie.stedman@santaferelo.com

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