This week, the UK government has announced significant increases to the Economic Crime Levy, with top-tier payments doubling from £500,000 to £1 million from April 2026 - adding further financial pressure to sectors already shouldering substantial compliance costs.
The changes, announced in the Budget on the 26th November, restructure the levy into four bands and increase charges across all tiers. The announcement comes just months after Credas Technologies revealed through a Freedom of Information request that the real estate sector contributed £3.7 million to the levy in 2023/24 alone - a considerable burden when combined with ongoing registration and compliance costs.
Tim Barnett, CEO of Credas Technologies, commented: “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.”
The Economic Crime Levy was introduced to fund efforts against money laundering and economic crime, applying to firms in regulated sectors with annual UK revenue exceeding £10.2 million. 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 new levy structure will come into effect for financial years beginning in April 2026 onwards.