Anti-Money Laundering (AML) rules for letting agents could be made stricter in the near future.

The UK government’s 2026-2029 AML strategy, just published, suggests that property may be increasingly recognised as vulnerable to money laundering because criminals can use transactions and ownership structures to integrate illicit wealth into the legitimate economy. 

Propertymark – which has analysed the new strategy – says a new consultation on the strategy outlines a change of approach involving letting agents.

Currently, letting agency businesses fall within the Money Laundering Regulations where they undertake qualifying work involving monthly rents of £10,000 or more. 

The new strategy says the government will consult during 2026/27 on whether changes are needed to address identified illicit finance risks involving letting agents. 

Depending on the outcome, secondary legislation could follow in 2027/28, with changes potentially implemented during 2028/29.

Propertymark says: “This does not mean that the threshold or scope has changed now, but it signals that the current regulatory perimeter is being actively reconsidered.

“Property developers will also come under scrutiny. They currently sit outside the regulated sector but are specifically identified for consideration as part of the same consultation.”

The agents’ trade body says the new strategy may see a strengthening of supervisory enforcement powers, including those relating to unannounced visits and director accountability.

Propertymark adds: “The strategy commits the government to exploring how digital identity and artificial intelligence can streamline AML compliance, whilst HMRC will promote good practice in the use of technology and AI among supervised businesses.

“Alongside this, the Suspicious Activity Reports regime will be reviewed for opportunities to reduce low-value activity, and further changes to the Money Laundering Regulations will be considered with the same objective.

“The ambition is a system that focuses agents’ and supervisors’ attention on genuine risk rather than compliance activity that provides little intelligence or protection.”

Watch this space for changes to be confirmed in the next year or so.