12^th Nov 2017

Many thousands of landlords and tenants still do not have CMP (client money protection) schemes protecting deposits being held by letting agents. A company that represents agents, landlords and tenants and secures deposits, is calling the government to honour their pledge and make CMP (client money protection) schemes compulsory for all letting agents.

The company is demanding that the government sticks to its promise and starts its consultation and introduction of the CMP regulation (and to make it enforceable) sooner rather than later.

UK letting agents are at present holding nearly £3 billion (£2.7bn) of deposits and around 20% of landlords and tenants may not be able to get back them back if an agent 'misappropriates' their funds, because the money is not protected by a CMP scheme.

The company has started a campaign which is supported by the Citizens Advice Bureaux, The Property Ombudsman, Ombudsman Services Property, the Property Redress Scheme, My Deposits, TDS, and DPS and has contacted Alok Sharma MP, the housing minister, asking him to start the processes for the implementation of the compulsory requirement.

John Midgley, chair of the steering group, commented: “Since 2011, we’ve been raising awareness among consumers that any agents they engage with should be part of a CMP scheme. This is a really important part of protecting tenants and landlords.

“We welcome the government’s announcement that it intends to introduce regulation to the lettings and management sector. But this move shouldn’t be to the detriment of the good work it’s done moving towards mandatory CMP.

“While most agents run good, professional businesses, there are still instances where rogue agents misappropriate clients’ funds. If they are not part of a CMP scheme, there is no recourse for those clients. Therefore, we’re urging the Government to move forward with the consultation on the implementation and enforcement of CMP at the earliest opportunity.”

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