The Government has recently announced its intention to make Client Money Protection (CMP) compulsory for all lettings agents. SAFEagent have been lobbying this decision over the last six years to protect consumers by making sure agents that are in possession of rent money and deposits keep it safe in a CMP Scheme.
Darlows lettings agents, a well-established agent with CMP already in place, is thrilled with the decision but implore consumers to remember that compulsory CMP is not yet government law, which means their finances are put at risk if their preferred agent does not have client money protection in place.
It is a fiercely 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 imperative that consumers check their agent is a part 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.”
3,000 lettings firms will come together for SAFEagent Awareness Week from the 15th – 19th May 2017, aiming to gather 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, signalling those agents that are part of a Client Money Protection (CMP) Scheme.