The government is considering its options when it comes to increasing protections for private landlords and tenants’ cash against fraud and bankruptcy.
With letting agents holding up to £2.7bn in deposits, rent payments and money for repairs at any one time, the government is concerned that a significant amount of this money is not protected.
The government has officially launched a review into whether private landlord and tenants’ money is properly protected from letting agents committing fraud or declaring bankruptcy.
The government has established a working group with colleagues from the House of Lords, led by Liberal Democrat Peer Lord Palmer of Childs Hill and Labour’s Baroness Hayter, to look at how Client Money Protection (CMP) is currently operating and whether CMP schemes should be made mandatory.
Currently the schemes, which would hold such cash independently, are voluntary and the government estimates only 60-80% of letting agents use them.
Members of the public, including landlords, are now being invited to submit their views and evidence on whether and how this should be done.
You can respond to the review by clicking here or by sending an email to CMP@communities.gsi.gov.uk