As of 1st July 2026, the UK Government has changed the Anti-Money Laundering (AML) rules for the lettings sector. The threshold for full AML compliance has effectively been increased from €10,000 per month to £10,000 per month. This seemingly small change has a noticeable impact on the process of securing tenancies for high-value rental properties.
What has changed?
Previously, letting agents and relocation companies were required to carry out full AML checks on both the landlord and tenant before agreeing tenancies where the monthly rent was €10,000 or more. This equated to roughly £8,500–£8,700 per month, but depended entirely on the exchange rate.
With the new rules taking effect this month, the threshold for checks is now a fixed £10,000 per month. The change also removes ambiguity and the need to monitor exchange rates when determining whether a tenancy falls within scope.
What does this mean for renters?
For most tenants, there will be no practical change. The vast majority of UK rental properties are well below the £10,000 per month threshold and will continue to follow the normal referencing and identity verification process.
Tenants renting higher-end properties between approximately £8,500 and £10,000 per month will no longer be required to complete the additional AML customer due-diligence that applied under the previous threshold.
What checks are required?
Where a tenancy exceeds £10,000 per month, letting agents and relocation companies must carry out Customer Due Diligence (CDD), which typically includes:
- Verifying the identity of both landlords and tenants
- Confirming proof of address
- Identifying the beneficial owner where a company or trust is involved
- Understanding the source of funds where appropriate
- Reporting any suspicious activity to the relevant authorities where required
Key takeaway
Renters can now secure tenancies on properties up to £10,000 per month without having to undergo advanced Anti-Money Laundering checks.
If you have any questions about AML checks or about how to secure a rental property in the UK, please contact us.
