Right-to-rent verification: How new AML regulations will impact the UK’s housing sector 

Tenant verification and rent checks

Landlords and letting agents must verify a tenant’s documents, including their identity document and immigration status, to confirm their right to rent. The tenant screening process should include checks on the tenant’s immigration status, as well as their credit history and rental history. It is also important to conduct follow-up checks on time-limited documents, such as visas, to ensure that the tenant’s right to rent has not expired. By implementing a comprehensive tenant screening process, landlords and letting agents can mitigate risks and ensure that they are renting to individuals who have the legal right to reside in the property.

Why does this matter to you as the head of AML, Risk, or Fraud?

Across jurisdictions, governments are strengthening AML frameworks with stricter requirements for identity verification, customer due diligence, and ongoing monitoring. The UK's evolving AML regime — especially with the Right to Rent checks — highlights the necessity for digital-first, auditable solutions that mitigate risk and streamline compliance efforts across the board.

As the Head of AML, Risk, or Fraud, you’re the internal advocate. Your role requires balancing innovation with risk mitigation, while demonstrating the value of compliance tools to senior decision-makers.

These new UK regulations mandate enhanced identity verification, sanctions screening, and customer due diligence (CDD) for all landlords and letting agents — including self-managed operators. Without an efficient, digital-first solution in place, compliance becomes not just a headache, but a liability.

You need to ensure:

• Thorough identity checks are completed swiftly and securely.
• Sanctions screening is not missed — and reported when needed.
• Audit trails are clean, accessible, and well-documented for at least five years.
• Evidence of Right to Rent checks is retained to comply with legal requirements and protect against penalties.

Additionally, it is crucial to conduct a follow-up check if the initial identification documents indicate a time-limited stay to avoid significant fines.

This is your opportunity to build a strong business case for automating IDV and sanctions checks, with measurable ROI, and prove to leadership that you can lead your team through regulatory transformation without disruption.

Why use Veriff for AML & right to rent compliance?

Veriff’s Right to Rent solution supports seamless, digital-first identity verification that aligns perfectly with the new compliance standards — helping your team stay one step ahead.

Key benefits for compliance leaders:

• Fast, secure identity verification with certified IDSP technology
• Real-time sanctions checks against OFSI’s updated consolidated list
• Reliable audit logs to meet the five-year record-keeping mandate
• Configurable workflows that adapt to your risk-based approach
• Request verification from the Home Office to confirm tenant eligibility when documentation is insufficient

Landlords have significant responsibilities in ensuring compliance with Right to Rent checks, including verifying tenants' right to reside in the UK and understanding the legal consequences of non-compliance.

🎯 Make compliance an asset, not a burden.

Exemptions and special cases

There are certain exemptions and special cases that landlords and letting agents should be aware of when conducting Right to Rent checks. For example, British and Irish citizens are exempt from the Right to Rent scheme, as are remaining legal tenants already living in the property before the scheme was introduced. Additionally, students and individuals with a pre-settled status under the EU Settlement Scheme may have different requirements for proving their right to rent. It is essential to understand these exemptions and special cases to avoid discrimination and ensure compliance with the Right to Rent regulations. Being aware of these nuances helps in conducting fair and lawful tenant checks.

Best practices for compliance teams

To ensure compliance with Right to Rent regulations, compliance teams should follow best practices, including conducting thorough tenant verification and rent checks, using Identity Service Providers (IDSPs), and maintaining accurate records of tenant documents. It is also essential to stay up-to-date with changes to Right to Rent regulations and to provide training to landlords and letting agents on the requirements of the scheme. By following these best practices, compliance teams can help to reduce the risk of non-compliance and ensure that landlords and letting agents are meeting their legal obligations under the Right to Rent scheme. The Attributes Trust Framework provides a framework for identity verification, and landlords and letting agents should ensure that they are using certified Identity Service Providers (IDSPs) to conduct digital right to rent checks.

Penalties are steep — compliance can’t wait

Failure to comply could result in:

• Hefty fines
• Up to seven years'years imprisonment
• Reputational damage
• Operational restrictions
• The need to report to the Home Office

It’s time to safeguard your organization by preparing your processes now. Remember, it is ultimately the responsibility of landlords to conduct Right to Rent checks and ensure compliance with the law, even if they delegate the task to agents.