New rules provide greater protection for Landlord and Tenants. Lawrence Williams, Head of Lettings & Tenancy Management at Webber’s, welcomes new changes that will affect all letting agents in England.
“From 1st April 2019, it will be a Legal requirement for all letting agents in England to belong to an approved Client Money Protection (CMP) scheme. CMP is an insurance product for letting agents so that landlords and tenants are protected and compensated should the agent misappropriate their clients’ money. Sadly, there are cases of this happening. In recognition of the extent and seriousness of such incidents the Local Authority will investigate agents and issue heavy penalties for non-compliance.
Agents will now have a duty from 1 April to display their CMP membership both in their offices and on their website so clients can be confident that their money is safe. However, we would still advise landlords to check with their agent; the cost of CMP membership may encourage some agents not to enrol and this puts clients at financial risk.”
As part of our membership with the Royal Institute of Chartered Surveyors, we are already a member of their Client Money Protection Scheme, and this change in the Law is a very sensible and reassuring step forward in providing greater protection for Landlord and Tenants”.
For further information on landlord obligations or if you have any questions about this article Lawrence can be contacted by clicking here.