A prominent PropTech figure says letting agents must make 2026 the year they prove they are fully compliant with new rules governing the private rental sector.
That’s the view of William Reeve, chief executive of Goodlord, who says that "procedural discipline starts immediately. May 1, 2026 may be the key date in everyone’s minds but in recent days we’ve seen the unofficial start of Renters Rights Act implementation. With councils granted stronger investigatory powers from December 27, the direction of travel is clear: enforcement will become more proactive and far less forgiving of poor process.
For agents and landlords, this year won’t be about reacting to new rules as they land, but demonstrating that robust compliance is already embedded in day-to-day operations. Those who use the coming months to get their records and systems in order will be best placed to navigate a tighter regulatory environment with confidence.”
From the last weekend in December, local councils with housing responsibilities have the authority to enter agency premises and demand agents’ documents relating to the previous 12 months. They will be under a legal obligation to enforce the Renters Rights Act (RRA), so they will be expected to act proactively as well as reactively.
The documents include:
- Tenancy Agreements
– Deposit Protection Certificates and Prescribed Information
– Right to Rent check records
– Certificates for Gas Safety and Electrical Installation Condition Reports (EICRs) - Energy Performance Certificates (EPCs)
- Legal Notices Served
- Repair And Maintenance Records
- Relevant council licensing certificates
- The RRA gives local authorities – the right to demand that “relevant persons” (ie, letting agents, landlords, property managers, institutional owners and others) produce documents for “any purposes connected with” specific elements of a range of laws including the Protection from Eviction Act 1977; the Housing Act 1988; the Enterprise and Regulatory Reform Act 2013; the Housing and Planning Act 2016; and some elements of the RRA.
These powers for councils will be extended to include other legislation from May 2026.
Government guidance on the new powers says “the Renters’ Rights Act contains powers to enter a rental sector business premises with, and without, a warrant … You can enter a business premises at a reasonable time to request documents and or to seize evidence if you reasonably believe a relevant person is running a rental sector business there.
If you are the person exercising the power of entry into business premises, you are allowed to: take another person or people with you, who will then have the same powers whilst they are with you; take equipment; take photographs; make recordings.”
The guidance says that “routine” visits to lettings agency branches require 24 hours notice, but this notice can be waived aside if the inspection is “non-routine” – and the reasons for waiting the notice is simply that “it is not reasonably practical to give notice … giving notice would defeat the purpose of entry.”
If the agent in an office refuses access when notice is given, the council can apply for a warrant.
In terms of documents which can be taken from agency offices, the guidance to local government officers states that in some cases “if you reasonably suspect that a document may be needed as evidence for a breach or offence under the rented accommodation legislation, you can take it.
If you reasonably believe the document is something you are allowed to search for or seize or that it contains information you are allowed to seize, but it’s not reasonably practical to decide this on the premises or to separate it on the premises, you can take the document using the additional powers in section 50 of the Criminal Justice and Police Act 2001. You will then need to assess if the document is relevant as soon as reasonably practicable afterwards. If it is not relevant you will need to give it back as soon as reasonably practicable.”
To assist with enforcement, councils are being given £18.2m in this current financial year, allocated on the number of private rented sector properties in each local area. The campaigning charity Shelter is giving training to some local government officers.
Anti-Money Laundering rules for Landlords
New anti-money laundering (AML) rules came into effect in 2025, marking a significant change for landlords and the lettings industry as a whole. The new rules mean financial sanctions checks are now required for all lettings, regardless of how much rent is charged.
What landlords need to know and how to stay compliant under the new regime.
Previously these rules primarily applied to agents dealing with high-value properties (those let for over £8,300 per month) but after identifying how criminals have been using the property market to move or conceal stolen or illegal money, the government has introduced tighter regulations. These changes are intended to close gaps in the system, bring stronger AML compliance into the UK lettings market, and broaden the scope of responsibility – impacting both landlords as well as agents.
Here’s what landlords need to be aware of following the changes:
1. Landlords are now within the scope of AML regulations
The updated rules mean landlords – not just letting agents – may now have obligations under AML legislation.
2. Sanctions checks now apply to both tenants and landlords
Letting agents are now required to check tenants and landlords against government sanctions lists on an annual basis. This applies to every new tenancy agreed and more longstanding tenancies which were in place before the new rules took effect. Although initial checks are to be carried out as outlined above, they also need to be re-applied on both landlords and tenants annually for every tenancy which remains active at that point.
3. Let-only arrangements remain a grey area
One of the areas still lacking clarity is let-only tenancies. If an agent helped find the tenant but is no longer involved in managing the property, it’s unclear where responsibility lies. Landlords with let-only arrangements are encouraged to revert to related Government guidelines.
4. Where agents handle rent, they are clearly responsible
If an agent is collecting rent on your behalf, they are responsible for ensuring AML compliance, including sanctions checks. In these cases, Landlords don’t need to take further action themselves but should still be informed, as and when such checks are to be undertaken.
5. Are there any associated costs
Where agents are undertaking the relevant checks, they will incur related charges by bespoke suppliers who are suitably equipped to carry out what is required. Every agent will decide whether they will pass on any charges to their landlords, and if so, how this will be applied.
6. Listing platforms may start asking for compliance evidence
Online property platforms such as Rightmove and Zoopla may begin requiring agents and landlords to provide evidence of AML compliance before publishing listings. This could become an industry standard over time.
7. Managing properties privately could carry new risks
While some landlords may consider self-managing to avoid potential costs, it’s important to understand that non-compliance could result in serious consequences. Working with an informed, compliant letting agent is without doubt the best way to protect yourself.
The new AML rules are a turning point for the lettings industry and will affect landlords in ways many hadn’t anticipated. While the finer details are still being worked through at an industry level, landlords need to be aware of their responsibilities and ensure they’re working with reputable agents who are up to speed.