There has been widespread pleasure from throughout the industry at the government’s decision to accept the recommendation of a working group that Client Money Protection should be mandatory for all letting agents.
Yesterday we reported that a Department of Communities and Local Government working group made the recommendation, and that housing minister Gavin Barwell gave informal acknowledgement that it would be supported by the government.
The formal backing was announced by Whitehall yesterday afternoon and Baroness Hayter, who chairs the working group, said: “The evidence was overwhelming...We are therefore delighted that the Government has accepted our recommendation as it will ensure tenants and landlords alike are provided with extra security in the lettings process.”
The news was also greeted with relief by David Cox, chief executive of ARLA Propertymark.
“Working together we have managed to convince the government of the merit of compulsory CMP. It’s a campaign that’s taken over two years to come to fruition and is a clear step forward towards a more regulated industry; akin to others such as solicitors or travel agents. CMP safeguards landlords and tenants in the event that agents misappropriate their money. With the ban on letting agent fees on the horizon, this is more important than ever before” he says.