Following Government consultations to introduce mandatory client money protection schemes for letting agents last year, the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2018 came into effect on 21st June 2018.
The intention of the Regulations is to give landlords and tenants confidence that their money is safe when it is being handled by a letting agent and to move away from client money protection schemes being voluntary.
This means that any agent carrying out letting agency or property management work in England will need to be a member of an approved client money protection scheme. The provider must be one that has been approved by the Government, and agents are able to join as soon as those have been published.
According to the draft impact assessment at the time of the consultations, it is estimated that around 44% of letting agents are members of a client money protection scheme and that transparency requirements introduced in 2015 have not sufficiently increased the number of agents in a scheme. The penalty for failing to hold client money protection will be a maximum of £30,000.
For further information or to discuss your property management requirements, please call Kellie Marsh, Residential Lettings Manager at Robinson & Hall, on 01234 362937 or email firstname.lastname@example.org.Back to articles