More support for compulsory Client Money Protection review

More support for compulsory Client Money Protection review


Todays other news
Average UK monthly private rents increased by 7.7% in the...
Inflation slowed to 2.6% in the year to March says...
Renters’ budgets remain strong while rent levels are holding firm...
The claim comes from a company called COHO...
The trade body has its say on government welfare changes...


The Association of Independent Inventory Clerks (AIIC) is the latest industry body to back the Government’s review of mandatory Client Money Protection (CMP) for letting agents. 

Housing Minister Gavin Barwell launched the review alongside a six-week consultation which closes on October 3. 

The AIIC has now joined organisations such as SAFEagent, ARLA, NALS and the RLA in supporting the review and calling for letting agents to respond to the consultation.

CMP schemes protect client funds held by letting agents, providing landlords and tenants with the opportunity to recover their money in the event it goes missing. 

The Government estimates that between 60% and 80% of agents already voluntarily offer CMP, quoting industry figures that letting agents hold almost £3 billion in client funds.

Last year, as part of the Consumer Rights Act 2015, it became mandatory for letting agents to make public whether or not they offer CMP, as well as publicising their fees and making clear which redress scheme they’re a member of. 

Patricia Barber, chair of the AIIC, says that even the most ‘trustworthy’ and ‘reliable’ agents should be offering CMP.

“As average rents and deposits continue to rise, it’s only fair that landlords and tenants are provided with the peace of mind that their money is protected,” she says.

“One of the Government’s concerns is that law-abiding and conscientious agents shouldn’t have to pay the additional subscription to be a member of a CMP scheme.” 

“However, as John Midgley of SAFEagent pointed out, it’s only a small cost per year and one that the vast majority of customer-focused letting agents would be happy to set aside.”

Barber says that mandatory CMP is required to target the small percentage of agents who aren’t voluntarily offering protection of their clients’ funds.

“It’s pleasing that the government is reviewing whether CMP should be compulsory and we hope that as many passionate agents and landlords as possible contribute their insight to the outstanding consultation,” she adds. 

The full consultation can be viewed here.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
loc8me says the scheme is open to anyone aged 16...
An announcement has come from Andrews Property Group...
Property consultancy Vail Williams is helping to brighten up grey...
Inspections should be twice or even four times a year,...
The BoE has come to a decision on interest rates...
The removal of temporary rent controls may make buy-to-let more...
The Welsh Government is backing the call for a 'compensation'...
Recommended for you
Latest Features
Average UK monthly private rents increased by 7.7% in the...
Inflation slowed to 2.6% in the year to March says...
Renters’ budgets remain strong while rent levels are holding firm...
Sponsored Content
With less than a month to go until the UK...
The UK government has implemented 16 financial sanctions rule changes...
The owners of the Rentman software application (for property Lettings...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here