Credas launches solutions for new UK letting regulations

The Office of Financial Sanctions Implementation (OFSI) has announced new guidance set to take effect in May 2025, which will require letting agents in the UK to monitor and report financial sanctions breaches.

This regulatory change is anticipated to impact approximately 2.9 million rental homes, requiring millions of additional checks and resulting in significant operational pressures on the letting industry.

In response to these upcoming demands, Credas has introduced a new suite of solutions aimed at assisting letting agents in meeting these compliance obligations. The product suite, known as Credas Lettings, is designed to simplify processes such as tenant and landlord verification, sanctions screening, and identity checks.

Tim Barnett, Chief Executive Officer at Credas, stated, "With the private rental sector now representing 19% of all households in the UK, this new OFSI guidance represents a major shift for the industry. Agents must now oversee financial transactions and carefully assess individuals and businesses with more scrutiny. We have created our lettings offering to focus solely on the sanctions capabilities letting agents need, removing the burden on agents."

The new regulations will require letting agents to screen all tenants and landlords for potential sanction breaches. This requirement supports the broader aim of ensuring regulatory compliance across the UK rental sector.

Credas Lettings involves conducting comprehensive checks including identity verification, bank account validation, and proof of ownership assurances, to facilitate agents in seamlessly adhering to the new guidelines. The solution also enables agents to quickly verify tenants' right-to-rent and sanction status.

An additional feature of the Credas Lettings suite is the 'bulk upload' option, allowing agents to input their current book of tenants and landlords in one action. This feature is designed to minimise the need for individual tenant or landlord contact, thus saving both time and resources.

The package also includes a dedicated lettings portal offering a streamlined user experience, reducing the possibility of errors, and ensuring agents have a comprehensive view of their data. This interface is expected to simplify training procedures and improve overall operational efficiency.

The potential challenge of managing false positives in sanction checks is also addressed by a feature in the Credas+ system, which allows agents to resolve these issues expediently. "At Credas, we are dedicated to providing agents with the resources and expertise needed to navigate these changes effectively," Barnett added. "Alongside time savings, streamlining processes, and removing the risk of false positives, it also gives agents peace of mind that a tenant is not impersonating the landlord and unlawfully renting out a property."

In addition to these functionalities, the Credas Lettings suite provides Know Your Business (KYB) checks, anti-money laundering assessments, and Land Registry integration to verify proof of ownership and title registration when necessary.

The implementation of these new regulations and the support from Credas is set to play a crucial role in how letting agents handle their increased responsibilities and maintain compliance with financial sanction requirements.