62% of letting agents failing to comply
The latest industry insight from The Letting Partnership has found that while Client Money Protection (CMP) is a legal requirement across the lettings sector, 62% of letting agents are failing to clearly display valid CMP certification on their website, highlighting a growing issue around how compliance is demonstrated to landlords and tenants.
The Letting Partnership reviewed 200 letting agency websites at random to assess how client money protection is presented publicly.
The analysis found that just 38% of agents clearly displayed a valid CMP certificate, while 62% did not have a clearly visible or valid certificate in place, despite this being a legal requirement and a key safeguard for landlords and tenants.
While many agents are operating to high compliance standards behind the scenes, the findings suggest that these standards are not always being clearly communicated. This creates a disconnect between meeting regulatory requirements and demonstrating them effectively, at a time when landlords and tenants are becoming increasingly informed and focused on transparency, particularly as the sector prepares for significant legislative change under the Renters’ Rights Act.
The lack of visibility also presents a potential operational risk for agents. Failure to clearly display CMP certification can result in fines of up to £5,000 from Trading Standards, yet it remains a relatively simple compliance requirement that can be overlooked within day-to-day business operations.
More broadly, the findings highlight a shift within the lettings sector, where compliance is no longer just about meeting regulatory obligations, but about being able to clearly demonstrate them. As scrutiny across the private rented sector continues to increase, and with the introduction of the Renters’ Rights Act set to further reshape landlord and tenant expectations, visible trust signals are becoming an increasingly important factor in how agents build credibility and win business.
In response, The Letting Partnership has launched TLP Assured, a new initiative designed to help agents make their compliance visible and verifiable. Built on more than 20 years of operational experience in client accounting and specifically client money compliance, the initiative provides independent review and recognition of an agent’s client money processes, either through CMP renewal audits or a standalone assessment.
Agents awarded TLP Assured status are publicly listed and provided with a kitemark, certificate, and window sticker, allowing them to clearly demonstrate their compliance credentials to landlords, tenants and industry stakeholders. By combining independent verification with public visibility, the initiative is designed to turn compliance into a commercial advantage, enabling agents to showcase the standards they already operate to.
Chris Mason, COO of The Letting Partnership, commented:
“Across the lettings sector, many agents are already operating to a high standard when it comes to compliance, but much of that work happens behind the scenes and isn’t always visible to landlords and tenants.
What our analysis shows is that even with something as fundamental as Client Money Protection, there can be a gap between having the right processes in place and clearly demonstrating them. In some cases, this can create unnecessary risk, but it also means agents are missing an opportunity to build trust.
With the Renters’ Rights Act already bringing significant legislative changes, trust between landlord and letting agent has never been more important. Landlords are increasingly relying on letting agents for guidance, and they need to feel confident that the agent they are working with is not only compliant, but can clearly demonstrate that they are operating to a high standard.
At the same time, the pace of regulatory change means that even the most conscientious agents can find it increasingly difficult to stay on top of every requirement through internal processes alone, which is where greater structure, oversight and independent input can play an important role.
As the market continues to evolve, compliance is becoming something that needs to be both delivered and demonstrated. By making compliance visible and independently verified, agents can provide reassurance, reduce risk, and better differentiate themselves in an increasingly competitive and regulated market.”
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