"Back in April, we highlighted the significant financial strain the Economic Crime Levy was placing on estate agents and the wider real estate sector. Now, just seven months later, the government is increasing these costs further. For firms in the higher revenue bands, this represents a doubling of their levy obligations at a time when the sector is already navigating a challenging economic climate."
"However, Credas warns that rising regulatory costs must be matched with greater operational efficiency if firms are to remain sustainable. "Rising levy costs make efficiency essential," Barnett added. "Firms can't keep absorbing higher compliance expenses without modernising how they operate. Digital verification tools offer a way to meet regulatory obligations more efficiently, reducing manual processes and human error while keeping costs under control. As regulatory costs continue to climb, investment in technology isn't optional, it's a necessity.""
The UK government will increase the Economic Crime Levy, restructuring it into four bands and raising charges across all tiers. Top-tier payments will double from £500,000 to £1 million from April 2026. The levy applies to firms in regulated sectors with annual UK revenue exceeding £10.2 million and funds efforts against money laundering and economic crime. Credas Technologies' FOI revealed the real estate sector paid £3.7 million in 2023/24. Rising levy and registration costs intensify financial pressure on firms. Credas states that firms must modernise and adopt digital verification tools to improve efficiency and control compliance expenses.
Read at London Business News | Londonlovesbusiness.com
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