Client Money Protection

The Government has recently announced an important step towards improving the standards of Residential Letting & Property Management agents throughout England through compulsory Client Money Protection.

Parks has been a regulated and licensed member of ARLA Propertymark since 2004, which already required its members to be audited, hold Client Money Protection (“CMP”) for all clients’ money and have professional indemnity insurance.

A Government consultation paper published in March 2017 found that only 60% of Residential Letting Agents protected landlord and tenants money by ring fencing and protecting their clients’ deposits and rents from misappropriation through Client Money Protection.  The consultation does recognise that it will be small agents and, particularly new entrants to the market, who are likely to be most significantly affected by the new law.

The Housing and Planning Act 2016 has introduced the latest regulation for all Residential Letting Agents in England to have mandatory Client Money Protection (“CMP”) from the 1st April 2019.  Compulsory membership of a client money protection scheme will be implemented and enforced by the Trading Standards Authority and will affect all  Residential Letting and Property Management Agents who collect and hold clients funds.

In addition to CMP, the Government has proposals to regulate all Residential Letting and Property Management Agents.  Mandatory regulation of agents will provide certainty for the quality of services being providing by the sector backed by full government regulation.

To read more on this topic, refer to our regulatory body, ARLA Propertymark by clicking here

By Louise Mitchell | June 5, 2018

As new landlords last year, my husband and I were recommended to Parks through the sole estate agent we use. We have had nothing but a positive experience in that time. Antony the Letting Director has always been on hand to investigate, inform and advise. He has happily come along to view properties we were interested in and pass opinion accordingly. None of our requests have been dismissed and nothing has been too much trouble. Communication is efficient and legal and procedural knowledge and policy has been tip-top. The lettings management team has always been quick to respond and as a result, our tenants seem happy too, which is also important.

Mrs Constantinou, Landlord, 2018

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