All letting agents in England are now required to belong to an approved Client Money Protection scheme, a measure designed to prevent rogue letting agents stealing your money.
The change, which comes into play from today, will mean that if any letting agent goes bust or makes off, the money belonging to landlords and renters will remain safe. Any agent that has not yet joined up to a government-approved scheme could face a fine of up to £30,000.
Previously, membership of a CMP scheme was voluntary with approximately 60% of agents signed up.
“From Monday, all agents will need to have joined an Approved CMP scheme, or they will be operating illegally and risk facing large fines,” said David Cox, chief executive, ARLA Propertymark.
“Those who haven’t yet joined a scheme must sign up to one immediately. Propertymark has received formal approval from the housing minister, Heather Wheeler, to operate a government-authorised CMP scheme on behalf of its members, so they are all automatically covered.”
Those who are not part of a professional body must make their own arrangements.
Reflecting on the new regulations, Heather Wheeler, minister for housing and homelessness, commented: “It is not acceptable that some tenants and landlords are being put at risk of losing out financially, simply because their agent had not signed up to a scheme to protect their money.
“Whilst the vast majority of agents act responsibly, this new law will prevent people from losing their hard-earned cash through no fault of their own.
“This will give tenants and landlords confidence and peace of mind that their money is in safe hands whilst with their agent.”
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Great idea. Crack down heavily on rogue agents and landlords and tenants!
CMP has got nothing to do with LL or tenants.
There are already many extensive pieces of legislation to deal with rogue LL.
The problem is that Councils refuse to enforce this existing legislation.
CMP is there to protect LL NOT tenants so much.
Though if a tenant pays rent to a LA who subsequently does a runner does CMP reimburse the tenant or the LL?
Can the tenant state I paid the rent; not my fault the LA has done a runner.
So presumably the tenant is not in rent default if this situation occurs.
The issue with CMP is where is the guarantee that the LA is compliant with the conditions of CMP?
Effectively what if the LA doesn't pay the CMP insurance premium though I'm not sure how CMP actually works?
Next thing is how quickly can CMP recover stolen monies?
In sufficient time to fund a monthly mortgage payment?
I doubt it.
Most insurance claims take ages to pay out.
For a LL that could mean a property has been repossessed months before any CMP payout occurs.
Nope I'll hold the deposit monies and receive RENT directly.
The LA can invoice me monthly!!
Another fools regulation for fools day, we don’t want protecting, we don’t want anything to do with you, go away and leave us alone.
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