28th
Apr 2017
The government has just recently announced it is mandatory that all lettings agents must put money into CMP accounts, (Client Money Protection) to stamp out the practise of the very few 'rogue agents' running off with landlords and tenants' money.
The Client Money Protection scheme ensures that if any agent becomes bankrupt or does a 'flit in the night', then any money that is owed or held will remain safe.
Any agents not following this mandatory practise could face fines of up to £5,000 and in some cases be put out of business.
The government set up a working group chaired jointly by Baroness Hayter with Lord Palmer and examined the existing arrangements for client protection. The working group decided that it should be made compulsory for lettings agents to put their clients' money into a CMP.
Baroness Hayter said: “The evidence was overwhelming, and we recommended the government use its reserve powers to implement this,”
She continued: “We are therefore delighted that the government has accepted our recommendation as it will ensure tenants and landlords alike are provided with extra security in the lettings process.”
An industry spokesperson said: “This is great news for landlords and tenants alike.
“Landlords should be concerned about agents having control over money due to them and formal schemes offer protection against any criminal activity that would deprive them of this cash.”
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