Propertymark has launched a new Client Money Protection system, Money Shield, with a support statement from much of the lettings sector establishment.
Last year, after lobbying from Propertymark and several other industry organisations, the government ruled in favour of mandatory Client Money Protection in England.
ARLA says it expects mandatory CMP to come into effect next spring, at around the same time as the letting agents’ fees ban.
“Agents should sign up before mandatory CMP comes into effect to set themselves apart from competitors and gain market share. It will also mean they avoid scrabbling around when the deadline nears, and risk falling foul of the law if they miss it” says Money Shield.
Propertymark, which owns Money Shield jointly with The Dispute Service and The Property Ombudsman, describes the scheme as “a straightforward and cost-effective solution, allowing agents to obtain robust protection for their clients without membership of a professional body.”
Propertymark will administer the scheme, which its website suggests will cost around £400 a year.
A joint endorsement from Money Shield, Propertymark, TDS and TPO says: “Before the Government’s announcement on compulsory CMP last year, many consumers didn’t consider the financial risks of using an agent who didn’t offer protection. Consumer awareness has now grown, and landlords and tenants are now far more aware of the dangers and associated risks. We urge all letting agents and estate agents across the country to get ahead of the curve and enrol now before the legislation comes into effect, to gain ground on your competitors and avoid falling foul of the law.”