Starting a UK estate or letting agency means putting a stack of compliance in place before you trade — and doing it in the right order. This free guide walks you through every step, from HMRC registration to Renters' Rights Act readiness, so nothing gets missed.
Most of these are legal requirements, not optional extras — and some carry criminal or civil penalties if you trade without them. Work through them in order. Where a step is only relevant to letting agents, it's flagged.
Estate-agency work — including property sourcing — is supervised for anti-money laundering by HMRC. You must register before you trade, appoint a nominated officer (MLRO), and be ready to evidence customer due diligence. Trading unregistered is a criminal offence with an unlimited fine.
Check your AML readiness free →Every estate and letting agent must belong to a government-approved redress scheme — The Property Ombudsman (TPO) or the Property Redress Scheme (PRS). It's a legal requirement, and you must display membership. Trading Standards can fine agents up to £5,000 for not being a member.
If you hold client money — rent, deposits, float — you must be a member of an approved Client Money Protection (CMP) scheme, hold client money in a separate account, and display your certificate. Penalties reach £30,000 for operating without it.
You process personal data on landlords, tenants, buyers and sellers, so you must register with the Information Commissioner's Office and pay the annual data-protection fee. Keep a privacy notice and a clear basis for the data you hold.
Professional indemnity (PI) insurance protects your business against claims arising from advice or errors. It isn't universally mandated by statute, but most redress schemes and professional bodies expect it — and it's basic protection for a new firm.
Registration alone isn't enough. You need a written AML Policy & Procedures document, a firm-wide risk assessment, a nominated officer, and trained staff with signed records — all of which HMRC will ask to see in an inspection.
See AML procedures & training →New lettings are now periodic assured tenancies — no fixed terms, no Section 21. Rent increases use the Section 13 Form 4A, possession runs through revised Section 8 grounds, and you must issue the tenant Information Sheet (a £7,000 penalty for getting it wrong). Set your processes up correctly from your first tenancy.
See the Renters' Rights Act kit & training →The guide tells you what to put in place. These make it happen — each built from primary legislation, ready to deploy the day you buy.
Written procedures, a firm-wide risk assessment and staff training that stands up to an HMRC inspection.
Explore AML products →A compliance kit, deployable templates and staff training for letting agents under the 2025 Act.
See the RRA products →Take the free 10-point AML Readiness Check and see your gaps in five minutes.
Take the free check →