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In a surprise move the Government has amended the Consumer Rights Bill to require letting agents to display whether they offer client money protection (CMP).

The Consumer Rights Bill is currently at report stage in the House of Lords and already includes the requirement for agents to display all fees and charges to landlords and tenants.

The move on CMP was welcomed by SAFEagent which has been calling for inclusion under a CMP scheme to be made mandatory for all agents. It wrote to housing minister Brandon Lewis recently requesting that CMP be made mandatory. Lewis responded that he had no plans at that time' to make CMP mandatory but he appears to have had a change of heart.

Chair of the SAFEagent steering group, John Midgley said: We are delighted that the Government has made this common sense move and listened to our concerns on the need for financial protection for landlords and tenants.

This is the first step in ensuring that being part of a CMP scheme is made a mandatory requirement.

We understand the Government's focus on taking action to ensure transparency and fairness of letting agents' fees and charges which addresses the financial aspects of entering into a tenancy but, in order to offer real consumer protection for the whole process agents should be part of a CMP Scheme. This new move goes part way to addressing the situation.

Consumers should always ask an agent they are dealing with if they are part of a CMP scheme and if not why not

We would urge all peers to give their support to this amendment when it is debated in the House of Lords early next week.

Comments

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    Government U turns - denials - lack of transparency, all simply confirm a total lack of policy to address the issues which have been around for years. Transient Politicians facilitated by inexperienced, easily manipulated civil servants, whose participation in the DCLG department that oversees TDP legislation and by extension, CMP, is estimated at 4 / 6 months. Anyone who says they have the answer to the problems doesn't understand the question.
    There are two very logical steps to be taken:- a) DCLG should stop allowing 'insured' TDP schemes to ever entertain the inclusion of non accredited letting agents without 'approved' CMP (NALS as the minimum) - e.g.there are two that SAFEagent doesn't recognise and b) as with the Law Society, making it an automatic criminal offense to misappropriate any client funds from a ring fenced client account (rent or deposits).

    • 25 November 2014 12:19 PM
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    Well done SAFEAgent although still think it is madness the gorvernment dont simply make CMP a legal requirement for all letting agents. Why just that you display if you have it There is still the ongoing issue of public awarenessand the vast majorty still dont know what CMP is let alone why to look out for it. Definitely a step in the right direction though.

    • 25 November 2014 11:37 AM
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    Agreed.

    • 25 November 2014 11:05 AM
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    @Dave Evans - look at the people behind it - it's no surprise really. But as you say, fair play to the safe team. And, for once, fair play the the Housing Minister for actually listening to industry

    • 25 November 2014 09:39 AM
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    You have to hand it to SAFEagent. They have done more in the last 3 years than ARLA in the last 2 decades. Fair play

    • 25 November 2014 09:37 AM
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    It feels like progress is finally being made on this topic. http://www.lonsdaleib.com/our-business/chartered-surveyors-property-professionals/

    • 25 November 2014 09:09 AM
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