29th March 2017
After attending the annual ARLA Propertymark Conference and Exhibition yesterday, Concentric HQ are pleased to confirm that the government have accepted the Client Money Protection Review (CMP) and will be introducing mandatory CMP for all letting agents.
Housing minister Gavin Barwell announced: “We’re accepting these recommendations... Today we confirmed we'll require all agents to protect the client money they handle.”
Presented by Baroness Hayter and Lord Palmer, the review called for all letting agents to use the scheme, which recompenses landlords and tenants should their funds be misappropriated, by law. This now means that rent, deposits and other client funds will be insured in the event of letting agents entering bankruptcy or committing fraud, meaning tenants and landlords can always claim their money back. While still under discussion, letting agents that do not comply will face heavy penalisation, and could potentially face a lifetime ban from lettings.
Chief executive of ARLA Propertymark, David Cox, commented: "Working together we have managed to convince the Government of the merit of compulsory CMP... With the ban on letting agent fees on the horizon, this is more important than ever before, so we are very pleased the Government has agreed to take it forward.”
As members of regulatory body ARLA Propertymark, Concentric welcomes this news and sees it as another big step toward total regulation of the private rented sector. We have always been proud to offer transparent client account services and feel strongly that all letting agents should offer the same.