Help get mandatory CMP introduced once and for all

Thursday 25 August 2016

The Department for Communities and Local Government (DCLG) has launched a review into Client Money Protection (CMP) and whether it should be introduced for all letting agents.

NAEA has been with sister organisation the Association of Residential Letting Agents (ARLA) every step of the way and urges all members and industry affiliates to provide evidence and help bring about a change in the law.        

Before the Housing and Planning Act was passed earlier this year an enabling amendment was added by the Government to give the Secretary of State powers to enforce Client Money Protection (CMP) on letting agents. However, no action has yet been taken by DCLG. 

Client Money Protection is already compulsory for ARLA Licensed agents and some NAEA agents and it provides landlords and tenants protection in the event of a letting agent misappropriating funds.

In recent months a number of cases have been in the news that highlight the need for the introduction of mandatory CMP. Take for example Kelly Hodd who defrauded her former employer, JMA Associates of £4,720 over a four-month period. Or the case of Martin Marcus who fronted a string of letting agencies and used numerous aliases between 2009 and 2015 to pocket £221,000 from more than 60 tenants and landlords.

Complete the online survey to contribute and have your say.

Responses to the review should be submitted online by 3 October 2016 at the very latest. 

Commenting on the launch of the review into CMP Mark Hayward, Managing Director of NAEA said:

“The National Association of Estate Agents want to ensure that all consumers are protected across all aspects of the housing market and has supported ARLA every step of the way in the campaign to get mandatory CMP introduced. The review is a great opportunity to provide the evidence that could get this issue into legislation once and for all. We urge members to participate and make their views known to the Government because without this protection system for tenants monies we are allowing a potentially devastating loophole in the protection of consumers to continue.”