Client Money Protection For Letting Agents

More legislation has been passed by the Government requiring all property agents in the private rented sector to obtain membership of an approved CMP scheme by 1st April 2019 – new legislation that is supported by Loveitts.

 

Following an ongoing campaign, spearheaded in Parliament by Baroness Hayter of Kentish Town, and supported by 30 organisations including Propertymark member agents and RICS to name a few the Government ruled in favour of mandating CMP for all letting agents in England. When the legislation comes into force on 1st April, all agents will need to have joined an Approved CMP scheme or will be operating illegally.


David Cox, Chief Executive, ARLA Propertymark said: “CMP has always been mandatory for Propertymark members, but when it becomes a requirement on 1st April, all letting agents will be operating on a level playing field and consumers will be protected regardless of which agent they choose. This is a triumph for the industry, and will go a long way towards improving the regulatory environment in the lettings sector and increasing protection for consumers who rely on agents to handle their money safely. Having worked closely with MHCLG to get this into law, we’re really pleased that our scheme has secured formal Government Approval.”


How Does Client Money Protection Help Landlords & Tenants?


Client Money Protection (CMP) is a compensation scheme which recompenses landlords and tenants should an agent misappropriate their rent, deposit or other client funds. Client Money Protection (CMP) is compulsory for our members so if a Propertymark Protected agent has misappropriated your rent, deposit or other client money you can apply for reimbursement through the CMP scheme.


Paul Barnes of Loveitts agrees with David Cox words. “As a landlord it is imperative that you use an agent with CMP. I am happy to assist with any queries that a landlord has, particularly in an ever changing lettings environment which is now becoming far more regulated, something we as a firm supports.”