Estate agents have been hit with almost £3.8m in anti-money laundering (AML) penalties in less than two years, highlighting the financial risks of failing to meet compliance requirements.

Analysis by property technology firm Coadjute identified 673 penalties against estate agency businesses between January 2024 and September 2025.

The penalties totalled approximately £3.77m over the 21-month period, according to the company’s examination of published HMRC enforcement notices.

The findings come as agents face pressure from rising operating costs, weaker sales activity and increasingly demanding regulatory requirements.

HMRC penalties put estate agents on notice

HMRC can impose substantial financial penalties on estate agencies that breach AML regulations. It can also publicly name offending businesses and, in serious cases, suspend or cancel their registration.

Agents must carry out appropriate customer due diligence, verify identities and assess money laundering risks. They must also investigate the source of funds where necessary.

Failure to complete these checks can expose agencies to enforcement action and potentially disrupt property transactions.

Dan Salmons, chief executive of Coadjute, said: “Strong AML processes are part of running a successful agency. HMRC can impose substantial fines, publicly name businesses that fail to comply and, in serious cases, suspend or cancel their registration.

“Coadjute’s analysis of published enforcement notices identified 673 penalties against estate agency businesses between January 2024 and September 2025, totalling approximately £3.77 million.”

The company also warned that regulatory scrutiny could intensify following updated guidance in September 2025 and July 2026.

Compliance burden grows as property sales weaken

The figures emerge against a difficult backdrop for estate agents.

The Bank of England recently increased Bank Rate to 4%, while Zoopla reported a 7% annual fall in sales agreed during October. Available properties rose by 7% over the same period.

Against this backdrop, Coadjute argues that agencies need to identify potential AML problems earlier in the sales process.

Delays in verifying buyers or establishing the source of their funds can create complications later, particularly when transactions approach exchange.

Agents urged to reduce AML administration

Coadjute has launched a campaign promoting its managed AML service, which handles identity verification, customer contact, source-of-funds investigations and more complex compliance cases.

The company argues that outsourcing some of this work could free up agents to concentrate on winning instructions and progressing sales.

Salmons said: “The most valuable thing agents can do with their time right now is win listings and make sales.

“That means being in front of clients, building relationships, negotiating offers and getting transactions over the line, not doing all the time consuming activities that are necessary these days to be AML compliant.”

However, outsourcing checks does not automatically remove an estate agency’s legal responsibility for meeting its AML obligations.