There was good news for landlords and tenants yesterday after the government took measures to prevent rogue letting agents stealing your money by agreeing to make it mandatory for all agents to put cash in Client Money Protection (CMP) accounts.
The change will mean that if any letting agent goes bust or makes off, the money belonging to landlords will remain safe.
Under the new plans, agents found to be handling client money without having CMP will be fined at least £5,000 or potentially shut down.
A government working group, chaired by Lib Dem Lord Palmer and Labour shadow minister Baroness Hayter, looked carefully at the existing and concluded that CMP should be mandatory for all agents handling client money.
“The evidence was overwhelming, and we recommended the government use its reserve powers to implement this,” said Baroness Hayter. “We are therefore delighted that the government has accepted our recommendation as it will ensure tenants and landlords alike are provided with extra security in the lettings process.”
Alan Ward, chairman of the Residential Landlords Association (RLA), added: “This is great news for landlords and tenants alike.
“Landlords should be concerned about agents having control over money due to them and formal schemes offer protection against any criminal activity that would deprive them of this cash.”