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New Government Measures for Client Money Protection (CMP)

17th April 2017 Simon Holland

Letting agents celebrate new protection for landlords and tenants!

Jacob’s Ladder Property Consultancy Ltd supports new Government measures on Client Money Protection!

At the end of March 2017, the UK Government announced that it intends to make Client Money Protection (CMP) mandatory for all letting agents.

The Safeagent Scheme has campaigned for the last six years for this decision, which will protect consumers by ensuring all letting agents holding rent money and deposits, must protect those funds in a CMP Scheme.

Jacob’s Ladder Property Consultancy Ltd, a professional letting agent with CMP already in place, is delighted at this decision, but is reminding consumers that mandatory CMP is not yet law, and their finances are at risk if their chosen letting agent does not have client money protection.

The UK rental market is huge, with an estimated £2.7 billion* held by letting agents in client accounts, but unfortunately there are still too many cases of criminal letting agents stealing landlord and tenant money. This is why it is crucial that consumers check their letting agent is part of a regulatory organisation which already provides CMP.

Glynis Frew, Acting Chair of the SAFEagent Steering Group, says:

We did it! For all of those SAFEagents who have carried the banner for consumer protection – the Government has finally taken on board our call for all agents to be part of a Client Money Protection Scheme. It’s wonderful news that Government will make CMP mandatory, but it isn’t in place yet. That means both landlords and tenants are still at risk of losing money. It is so important that consumers understand that they need to choose their agent wisely by asking if they are part of a CMP scheme before entering into a contract with them.”

This May, 3,000 professional lettings firms will unite for SAFEagent Awareness Week 15-19 May 2017 – continuing to highlight to consumers the importance of choosing an agent who is part of a Client Money Protection (CMP) Scheme run by an agent regulatory body or trade association.

We advise that landlords, tenants and consumers should always look for the SAFEagent logo, an easily identifiable consumer mark denoting agents subscribed to a Client Money Protection (CMP) Scheme. 

About SAFEagent

SAFEagent – Safe Agent Fully Endorsed – is a reliable mark denoting firms that protect landlords and tenants money through Client Money Protection schemes. Set up ‘by the industry, for the industry’ and recognised by the Government, it is supported by The Property Ombudsman, Ombudsman Services: Property, My Deposits, TDS and DPS as well as industry suppliers Endsleigh.

All agents registered with SAFEagent are part of a Client Money Protection Scheme that reimburses consumers in the event of misappropriation of clients’ funds. There are several schemes in the sector operated by NALS, ARLA, NAEA and RICS to which agents voluntarily belong. The scope of these schemes varies and consumers should contact their agent for full details of the scheme of which they are a part.