Earlier this week, the Government announced its intention to make Client Money Protection (CMP) compulsory for all lettings agents. SAFEagent have been campaigning this decision for the last six years, to protect consumers by making sure agents that are holding rent money and deposits keep it protected in a CMP Scheme.
haart lettings agents, an established agent with CMP already active, is thrilled with the decision, but would like to remind consumers that compulsory CMP is not yet government law, therefore their finances are put at risk if their preferred agent does not have client money protection in place.
It is an extremely competitive market, with an estimated £2.7 billion* currently held by letting agents in client accounts. However the unfortunate truth is that there is still a rampant trend of criminal letting agents stealing landlord and tenant cash. This means it is crucial that consumers check their agent is a member of an agent regulatory organisation already providing CMP.
Glynis Frew, Acting Chair of the SAFEagent Steering Group, says:
“We did it! For all of those SAFEagents who have carried the banner for consumer protection – the Government has finally taken on board our call for all agents to be part of a Client Money Protection Scheme.
“It’s wonderful news that Government will make CMP mandatory, but it isn’t in place yet. That means both landlords and tenants are still at risk of losing money. It is so important that consumers understand that they need to choose their agent wisely by asking if they are part of a CMP scheme before entering into a contract with them.”
In May, 3,000 lettings firms will come together for SAFEagent Awareness Week 15th – 19th May 2017, which aims to draw attention to the importance of consumers choosing an agent who is part of a Client Money Protection (CMP) Scheme, run by an agent trade association or regulatory body.
Tenants, landlord and consumers should always keep an eye out for the SAFEagent logo, denoting those agents that are subscribed to a Client Money Protection (CMP) Scheme.