How to comply with the Money Laundering Regulations (auctioneers)

From the end of October 2024, UK banks will be able to hold payments for up to four days whilst investigations of potential fraud are carried out, raising concerns that the large transactions needed for property purchases may be incorrectly blocked. The change follows stricter rules on fraud compensation which came into force on 7 October 2024, meaning that banks must refund scam victims up to £85,000 within five days.

Officials from the Ministry of Housing, Communities and Local Government (MHCLG) spent 90 minutes with Propertymark Regional Executives to listen to the specific concerns of members’ and their client's about the proposed legislation. Strong challenges were expressed on the removal of fixed-term tenancies, with compelling evidence of the impact on tenants and landlords. Executives also made a clear case for more clarity on areas including reasonable grounds to refuse pets and the ability to take rent upfront.

From 9 December 2024, fees will double for accessing and obtaining copies of title plans and registers – the first change to the cost in more than 10 years – and customers with automated systems are advised to make the necessary changes to their systems before the implementation date. According to HMLR, even with this increase, most customers will pay less than in 1992.

The auction sector is buoyant with 38% of agents reporting increased lot numbers in Q2 2024. Despite this positivity, challenges remain. The economic outlook remains mixed; our members are concerned about the cost of doing business. Positively, the quarter ended with inflation in line with the Bank of England’s target, a precursor to a long-awaited reduction in the base rate.