11^th Sep 2016

Landlords and letting agents are being urged to get involved and respond to the government’s consultation on CMP (Client Money Protection) by an association of inventory clerks.

The government is concerned that out of the £2.7billion of deposits held by letting agents received from tenants, that a hefty amount is not being protected correctly.

The government’s review of the CMP scheme is to find out if the deposits are in fact being protected and are not open to fraud by letting agents.

The government’s working group includes members of the House of Lords and both Baroness Hayter and Lord Palmer of Child Hill are in the charge of the review as to the CMP’s schemes affectivity and whether they should become mandatory.

The government believes that between 60 and 80% of letting agents are actually using any of the designated schemes which are at present left to the discretion of agents.

The government is asking landlords and the public to submit their views and supply any proof that their deposits are not deposited in schemes. They are also being asked to make suggestions on whether they feel CMP schemes should be made mandatory and if so, how best to implement this.

Industry heads in the private rented sector are all in support of the government making CMP mandatory.
The organisation’s chair, Patricia Barber, said: “The majority of letting agents are trustworthy and reliable but that doesn't mean that they don't need to offer CMP.

"As average rents and deposits continue to rise, it's only fair that landlords and tenants are provided with the peace of mind that their money is protected."


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