Government has today announced measures to make Client Money Protection (CMP) mandatory for all letting agents across England. The announcement comes in response to ARLA Propertymark's long running campaign to ensure that tenants and landlords receive greater protection. The move follows steps towards regulation taken in Scotland and Wales.
This is an argument we have been making for some time alongside Baroness Hayter and Lord Palmer. Working together we have managed to convince the Government of the merit of compulsory CMP. It’s a campaign that’s taken over two years to come to fruition and is a clear step forward towards a more regulated industry; akin to others such as solicitors or travel agents. CMP safeguards landlords and tenants in the event that agents misappropriate their money. 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.
Baroness Hayter, a Labour peer who has championed the measure said:
“The working group, chaired by Lord Palmer and myself, looked carefully at whether CMP should be mandatory for all agents handling client money. The evidence was overwhelming, and we recommended the government use its reserve powers to implement this. 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. May I also extend special thanks to ARLA Propertymark for its role in marshalling the industry to back the measure and for providing the working group with real ‘on the ground’ evidence for why mandatory CMP is so desperately needed.”
CEO, ARLA l Propertymark
Devon Rose is part of the National Federation of Property Professionals Client Money Protection Scheme