Last year, the UK estate agency sector experienced a significant surge in activity. Nearly 3,000 homes were sold daily, leading to a 7% increase in the average agent’s workload. This uptick underscores the dynamic nature of the property market, but also highlights the escalating pressures faced by professionals in the industry.  

With predictions that demands will intensify in 2025, it becomes increasingly critical for estate agency businesses to implement effective support mechanisms. Without this, individual agents risk burnout, decreased productivity, and potentially damaging errors in their work. 

The AML and compliance requirements  

One significant aspect of an agent’s workload involves adhering to Anti-Money Laundering (AML) and other compliance regulations. Estate agents are legally obligated to conduct customer due diligence, report suspicious activities, and maintain accurate records to prevent money laundering and terrorist financing. These responsibilities, while essential, can add substantial strain if not appropriately managed. 

The growing administrative and regulatory burden is, understandably, a frustration for many property professionals, with the regulatory requirements currently facing agents including, but not limited to:  

• AML regulations, which require agents to conduct customer due diligence and register with HMRC for AML supervision. 
• The need to belong to a government-approved redress scheme.  
• The compliance requirements of the Estate Agency Act 1979.
• New financial sanctions rules for letting agents, which include identifying and reporting designated individuals or entities and preventing prohibited transactions. 

Consequences of inadequate compliance measures

Failing to establish robust and compliant processes can have severe repercussions. Agents may face legal penalties, including fines and even imprisonment in the worst cases. Moreover, poor compliance can damage an agency’s reputation, leading to a loss of client trust and potential business opportunities. 

AML, in particular, keeps many estate agents up at night, with HMRC issuing a staggering £1.6 million in fines to agents in 2024 for various breaches. The penalties ranged from £10,000 to over £200,000.1 

Strategies for supporting agents

The good news is that meeting regulatory requirements doesn’t have to be overwhelming. With the right processes, expert guidance, and practical training, compliance can become a seamless part of daily operations – reducing inefficiencies and even easing the workload for busy agents. 

Here are some straightforward steps estate agencies can take to support to their teams: 

Implement comprehensive training programs 

Implementing comprehensive training programs can significantly lighten workloads by equipping agents with the knowledge and confidence to handle tasks efficiently. When agents fully understand AML regulations and compliance procedures, they can complete necessary checks more quickly and accurately, reducing the time spent on corrections, rework, and potential regulatory issues. 

Leverage technology 

Advanced software solutions can streamline compliance processes, making it easier for agents to manage their responsibilities efficiently while following all the necessary checks.  

Establish clear compliance protocols 

Establishing clear compliance protocols can significantly lighten workloads by providing agents with a structured, step-by-step framework to follow. When processes are well-documented and easily accessible, agents spend less time figuring out what needs to be done and more time efficiently completing tasks. 

Business benefits of good compliance for estate agents  

The bottom line is that well-trained agents are less likely to make mistakes that could trigger audits, investigations, or fines – saving valuable time that would otherwise be spent addressing compliance breaches. Moreover, by standardising compliance efforts across the agency, businesses can streamline operations, improve efficiency, and allow agents to focus on their core responsibilities and revenue-generating activities – without unnecessary administrative burdens. 

Partnering with estate agent compliance experts

By proactively supporting their agents via robust compliance measures, estate agency businesses can enhance efficiency, protect their reputation, and thrive in the evolving property market. And, when it comes to navigating the complexities of AML and compliance, partnering with a specialist can be invaluable.  

A leading risk and compliance consultancy, Legal Eye helps estate agents across England and Wales tackle their regulatory challenges head-on. Providing sound knowledge and practical solutions, our team will help you understand the regulations and industry requirements and adapt your processes and procedures accordingly. 

Removing the burden from your shoulders, get in touch today for an initial chat about how we can help. Email [email protected] or call 020 3051 2049.