AML guidance puts self-employed agents under scrutiny

Self-employed agents and their networks should be prepared for more scrutiny of their anti-money laundering (AML) procedures, it has been claimed.

Updated AML guidance from HMRC last month provided greater clarity on how existing AML requirements apply to self-employed agents, home-based businesses, and franchise networks, particularly when it comes to registration, supervision, and accountability.

Director of Benham and Reeves Marc von Grundherr (pictured) highlighted that one of the most significant implications is that the guidance says estate agency networks are responsible for AML compliance where their self-employed agents operate under the network’s supervision and procedures.

This means that networks must include relevant business premises used by their self-employed agents in their HMRC AML registration, potentially including home addresses where agents do not have a separate office.

The same standards must apply regardless of whether an agent operates from a high street branch or their kitchen table.”

However, agents operating independently, with responsibility for their own business activities and AML procedures, may need to register separately with HMRC, the guidance said.

It comes as research from TwentyEA shows self-employed agents have seen their share of the UK property market increase from an estimated 2.2% in 2025 to 2.8% in 2026.

The sector is also outperforming traditional agents, with a higher likelihood of selling a property (65.2% versus 53.1%) and faster average completion times (142 days versus 152 days).

Level playing field

However, as the self-employed model continues to grow in popularity and performance, the updated AML guidance brings additional compliance responsibilities that both individual agents and the networks supporting them must be aware of, von Grunderr says.

He adds:  “It’s high time that greater scrutiny was placed on the self-employed estate agency sector.

“Whilst the model provides an alternative career path for those who may not be able to commit to traditional full-time employment, this flexibility cannot come at the expense of proper procedures, regulatory compliance and financial accountability.

“Estate agents are entrusted with facilitating some of the largest financial transactions people will ever make, and the same standards must apply regardless of whether an agent operates from a high street branch or their kitchen table.

“The updated HMRC guidance is a welcome step towards ensuring a level playing field across the industry and, ultimately, protecting consumers.”