Martin & Co, a lettings franchise chain which underwent serious problems over missing client money in some of its branches, has said it does not actively encourage its offices to join the SAFEagent scheme.
The new scheme, an initiative by letting agents which is very shortly to be launched to consumers, tells landlords and tenants via a simple logo whether the agent keeps client money in separate accounts and has client money protection insurance.
It has so far attracted around 1,000 letting agents to sign up.
But Martin & Co managing director Ian Wilson said: “We don’t feel that there is any commercial benefit.
“Few members of the public have heard of NALS, and fewer still have heard of SAFEagent.”
However, 21 Martin & Co franchises, including the Canterbury office, run by David Anthony, have joined the scheme, which is administered by NALS, the National Approved Letting Scheme.
Nick Cooper, chair of the SAFE steering group, said: “We are delighted that lettings agents across the country have understood what we are trying to achieve and have signed up to SAFE. It demonstrates that there is a clear demand for additional safeguards and this new kitemark is already going a long way to satisfy it.
“SAFEagent represents a huge leap forward in the effort to eliminate the potential threat posed by ‘uninsured’ agents operating in the private rented sector without the need for Government intervention. We look forward to seeing many more agents making the positive move to register.”
Wilson actively improved the culture at Martin & Co a couple of years ago after a number of incidents involving franchisees who owed customers money. For example, the franchisee of the Chester business collapsed into liquidation owing nearly £200,000.
Offices in Brighton, Tonbridge and Rochdale were also among those investigated over alleged misuse of tenants’ deposits. At another unnamed office, it was reported that £150,000 worth of deposits went missing.
But this week, Wilson said: “Our internal audit processes have proven robust with no client monies claims arising since 2009.”
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