AML Regulations for Landlords: What you Need to Know (& Why You'll Need a Letting Agent)

The Anti-Money Laundering (AML) Regulations for letting agents and landlords have significantly changed.

On the 14^th of May 2025 the new AML rules surrounding a wider range of rental activity in the UK came into effect, creating a set of new legal responsibilities for letting agents and landlords.  If you are a landlord, these checks will apply to ALL rental properties, regardless or the monthly rent amount, where previously they were only mandatory for high-value tenancies.  

While the theory - clamping down on criminal activity - is clear in practice it is complex, technical and difficult to manage without professional systems and legal know-how.

What’s Changed? A Quick Comparison

To make things easy to understand, here is what the situation looked like before and what is now required.

What Does This Mean for Landlords?

In short, the burden of compliance on a landlord has increased dramatically.

Under the updated regulations, landlords of any properties are now expected to:

• Prove their identity and beneficial ownership
• Show the legitimate source of rental income or ownership funds
• Perform due diligence on tenants
• Keep full audit trails and risk assessments
• Register with HMRC as a letting business under AML law

As Steve, Managing Director at Abode explains:

“In theory, it’s incredibly onerous. In reality, we’ve had to purchase two systems to stay compliant - one using Experian to check landlords’ status and another that checks all tenants through our online signing platform. It really is impossible to do it correctly without at least making use of a Let Only agency service.”

Why DIY Just Won’t Cut It

Trying to handle this yourself? Ensure you are prepared for:

• Specialist ID verification software
• Constant data monitoring
• Compliant risk-based approaches
• Secure digital storage of AML reports and assessments
• A working knowledge of UK AML law (and its ongoing updates)

Even the most organised landlords will struggle to do this correctly without tripping up on a technicality - or worse, leaving themselves exposed to fines or criminal penalties.

What is Abode Doing About It?

At Abode, we’ve taken full steps to protect our landlords and ensure compliance with the new AML rules.

Here’s what we’ve done:

• Landlord Checks via Experian - we’ve implemented a dedicated Experian-powered platform to verify landlord identity, ownership and risk status - accurately and securely.
• Tenant Checks via Online Signing - our e-signing system now includes integrated AML verification for tenants, ensuring all lettings are compliant before agreements are signed.
• Full Compliance - Even at a “Let Only Level” - we believe every landlord deserves protection from legal risk, so even our Let Only service includes the necessary AML checks and compliance steps.

What Should Landlords Do Next?

If you’re letting property of any value and managing it yourself, you’re now legally responsible for complying with the full scope of AML regulations.

That includes:

• Registering with HMRC
• Performing AML checks on yourself and your tenants
• Documenting risk assessments
• Keeping compliant records for up to five years

But you don’t need to do it alone. Letting through Abode means all of this is taken care of for you, professionally, correctly and legally. You can find out more about how we can support you with our landlord services.

The Law Has Changed – Make Sure You’re Protected

The updated Anti-Money Laundering rules mark a major shift in the responsibilities placed on landlords. While the intent is to protect the property market from abuse, the side effect is clear: a huge increase in complexity for property owners.

Speak to the Abode team today - we’ll walk you through your obligations and take the stress out of compliance.