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Industry News September 30, 2019

Importance of Client Money Protect

According to Client Money Protect, an estimated 20% of letting agents are still not signed up to a Client Money Protection (CMP) scheme. This revelation comes despite CMP being made a legal requirement in April 2019.

Firms such as Keats Letting in Haslemere are members of ARLA Propertymark, the industry’s main regulatory body, and have had client Money Protection in place for many years as part of their membership. It allows their landlords and tenants to let and rent with complete confidence.

Rita Tinney, Keats Sales and Lettings Director said: “It is so disappointing to read that a large number of landlords and tenants don’t have the peace of mind knowing that any monies paid to their letting agent are safe and secure. However, while some agents have flouted the regulations, other firms have and continue to experience great difficulty obtaining the necessary insurance as there are so few Government approved providers.”

Client Money Protect, one of six approved CMP schemes, is working with the National Trading Standards Estate and Letting Agency Team to investigate the scale of non-compliance.

James Munro, Head of the National Trading Standards Estate and Letting Agency Team said: “We act as the lead enforcement authority for the Tenant Fees Act. The team is working with the approved CMP schemes and local authorities to ensure that agents who are required to belong to a scheme are correctly registered with one of the six approved schemes.”

“We have arrangements with local authorities to refer cases for enforcement, and a backstop arrangement where we will take action in cases where a local authority cannot. With the support of the schemes, we are also proactively monitoring websites to ensure agents are clearly displaying their membership.”

It is important to use an agent which has CMP, as this can help you to identify a rogue from a professional operator.

Find out more about our lettings services and view our CMP membership certificate HERE.

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