It’s been revealed that there’s been a three year project to identify and tackle letting agents failing to comply with Client Money Protection (CMP) regulations.
Propertymark says that from June 2022 to June 2025, 12 local authorities took part in a project coordinated by the Central England Trading Standards Authorities (CEnTSA).
The project was in the West Midlands and ran in phases: first focusing on data collection, guidance and advice; then moving to enforcement.
Propertymark says: “Notices of intent and final enforcement notices were issued where agents lacked CMP, failed to display valid certificates, or neglected to obtain redress membership. In total, CEnTSA issued 131 enforcement notices over the period.”
Propertymark’s compliance team supported the operation by answering hundreds of enquiries and providing witness statements when required.
CEnTSA says the project has created a blueprint for other local authority areas to follow.
For the past six years it’s been a legal requirement for agents in England who handle client money to join a government-approved CMP scheme.
Client money includes rent, tenant deposits (before deposit protection elsewhere), service charges, and any other funds held on behalf of clients.
Agents are mandated to:
- Join an approved CMP scheme.
- Hold client funds in a segregated client money account with a UK bank or building society.
- Display their CMP certificate visibly in any office where they deal face-to-face with clients, publish it on their website, and provide a copy free of charge on request.
- Notify clients if their CMP membership changes.
Failing to comply may result in penalties: authorities can impose fines of up to £30,000 for not belonging to CMP, and up to £5,000 for failing to meet transparency obligations – even something like not displaying a certificate.
