Government cracks down on dirty money in housing market

A market awash with Dirty Money

Criminals have for years exploited weaknesses in the UK’s property system to launder illicit wealth.

Around 90,000 UK properties are currently owned by anonymous shell companies, with an estimated combined value of over £100 billion.

According to recent analysis, this influx of dirty money has inflated property prices by around £3,000 nationally - and by as much as £11,000 in London. The National Crime Agency estimates that up to £10 billion is laundered through UK property every year.

Despite stringent anti-money-laundering rules, thousands of estate agents are still failing to carry out proper checks to prevent criminal funds entering the market, allowing anonymous buyers to hide behind opaque corporate structures.

Government Overhaul

The Government’s proposed overhaul of the homebuying system aims to both speed up transactions and drive dirty money out of the UK property market. The reforms focus on greater transparency, stronger identity checks, and digital modernisation, including:

• Upfront property information – sellers and agents will be required to provide key details (such as title, tenure, and condition) before marketing a property, reducing uncertainty and improving transparency.
• Earlier binding contracts – introducing legally binding agreements sooner to cut delays, reduce failed sales, and make it harder for anonymous buyers to exploit loopholes.
• Digital ID verification and property logbooks – creating a secure, digital system to verify buyers and sellers, share data, and track property information throughout a transaction.
• Higher professional standards for agents and conveyancers – requiring qualifications, compliance training, and accountability measures to strengthen anti-money laundering checks.
• Stronger corporate transparency – expanding the Register of Overseas Entities, improving access to trust ownership data, and empowering Companies House to challenge and reject suspicious company filings.

Together, these reforms aim to modernise the housing market, improve trust and efficiency, and help flush out the billions in illicit funds that have long distorted UK property prices.

A Turning Point for Transparency

Phil Cotter, CEO of digital compliance specialists SmartSearch, said the Government’s proposed reforms could be a “real turning point” for both improving transparency and cleaning up the property market.

“We welcome the Government’s plans for a major reform of the house buying system – which aims to cut costs, reduce delays and halve failed sales,” Cotter said. “It’s high time the UK property system was cleaned up, and these plans could be a real turning point, not just for speeding up transactions and improving transparency, but for tackling the billions in dirty money that continue to distort the market.”

He added:

“Our own analysis shows illicit wealth has inflated house prices by around £3,000 across the UK and more than £11,000 in London, putting homeownership even further out of reach for ordinary families. By introducing greater upfront transparency, binding contracts and strong source-of-funds verification, the proposed changes won’t just speed up sales and cut costs — they will shine a light into those opaque structures that have allowed illicit wealth to distort our housing market.”

A Fairer, Faster Future

If implemented effectively, the reforms could help restore trust in the housing market, ensuring every buyer and seller can see that the system is fair.

Experts say that estate agents who embrace trusted digital ID and compliance tools will be best placed to benefit - gaining credibility, customers, and confidence in a market finally being cleaned up.

Read an overview of the Dirty Money crisis here.