The lettings industry has been a primary focus on the government, to regulate the practices of private landlords and estate agents. It has also been supported by the agencies or organisations who promote fair practices and wish to see an end to the rouge agents and private landlords who abuse the system, giving the industry a bad reputation.
The Client Money Protection Scheme was brought into effect in March 2019, making it compulsory for all agents to belong to a government approved CMP scheme. One of the primary campaigners for the legislation, the Association of Residential Lettings Agents (ARLA) estimated that £2.7 Billion pounds was held with as much as £700,000 not being protected.
This left a big gap where landlords and tenants were vulnerable in the event of an agent misappropriating rent, deposits or their clients funds. A gap which is being closed in London, with the National Trading Standards Estate and Letting Agency Team stating that a “crackdown is underway in London in particular”.
Any agency who is found to not be part of a CMPS after the government deadline of 1st of April 2019 could:
- Face fines of up to £30,000 on agents who do not belong to a scheme beyond this date.
- Face fines of up to £5,000 on agents who fail to display the correct scheme details on their premises and website.
Landlords and tenants working with agencies like Peter Martin who hold a CMPS certificate can feel that extra security, for those who are unsure you should ask your agent and make sure that your finances are safe.
Written by Toby Dawson
