Estate agents and property firms are being urged to get ahead of sweeping new identity verification rules as Companies House confirms the formal start date for one of the most significant compliance reforms in recent years.
From 18 November 2025 all new company directors must verify their identity before incorporating a business or taking up a new appointment.
Existing directors and people with significant control (PSCs) will be required to verify their identities within 12 months or face enforcement action – including fines and potential criminal penalties.
The rollout is part of the government’s Economic Crime and Corporate Transparency Act (ECCTA), which will introduce new responsibilities for regulated professionals, including estate agents operating as Authorised Corporate Service Providers (ACSPs).
WAKE-UP CALL
And Phil Cotter, CEO of SmartSearch, reckons that the timeline now confirmed by Companies House should serve as a wake-up call for the sector.
He says: “The confirmation that mandatory identity verification will begin on 18 November 2025 sets a clear timeline for one of the most significant reforms introduced by the Economic Crime and Corporate Transparency Act (ECCTA).
“From that date, all new directors must verify their identity before incorporation or appointment, and existing directors and people with significant control (PSCs) must do the same within 12 months, or risk enforcement action – including fines and potential criminal penalties.”
MOST AFFECTED
The property sector, he warns, is likely to be among the most affected. Cotter points to the £6.7 billion in suspicious funds that have flowed into UK real estate since 2016, and flags the increasing pressure agents are already under, citing recent data showing that 49% of property firms say they’re overspending on compliance; 40% report a shortage of skills and more than a quarter say regulation is holding back their business.
He says that while individuals can verify their identity via GOV.UK or through an ACSP, it’s the latter group – including many estate agencies – that faces the most operational burden.
Under the new regime, ACSPs must retain ID records for seven years and notify Companies House of any changes to their supervisory status within 14 days.
NEW RESPONSIBILITIES
“For ACSPs – professional firms such as estate agents, accountants, lawyers and company service providers – the ECCTA introduces new responsibilities… Meeting these demands at scale will be challenging.”
To support the transition, Cotter says digital compliance systems will be essential – particularly for firms with large client bases and ongoing onboarding activity.
He says tools such as real-time identity verification, automatic screening, daily monitoring and retrospective batch uploads as practical ways estate agents can manage the new requirements more efficiently.
“As the UK moves towards a more transparent corporate environment, streamlining compliance through technology will be key – not just to meeting regulatory requirements, but to reducing risk, managing costs, and building trust.”
With a 12-month transition window now confirmed, experts say estate agents acting as ACSPs should review their compliance processes now – especially those offering company formation services or supporting overseas buyers via corporate structures.
Further guidance from Companies House is expected later this year.
