Client Money Protection Scheme Amendment

August 23, 2016

It is estimated that letting agents currently hold approximately £2.7 billion in client funds on behalf of renters and landlords, this can be for a for a range of reasons, including deposits, rental payments, and money for repairs.

If the letting agent is not part of a Client Money Protection scheme (CMP) clients could possibly lose vast sums of money if the letting agent goes bankrupt or commits fraud.

The government is to review whether tenants or landlords money held by the agent is adequately protected from letting agent fraud or bankruptcy.

Presently lettings agents sign up to the CMP scheme voluntarily, the government consultation will look to amend the Housing and Planning Bill 2015 so that the scheme becomes mandatory, the amendment will require letting agents to have a protection system in place for monies received by them in the course of their business from tenants, prospective tenants or any other person who is renting accommodation or seeking accommodation to rent.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Breaking Property News 6/7/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   Property portals are sales tools, what buyers need are truth tools   Thought leadership by Oliver Januiax Founder of NestLink   ‘The UK property market has an access not a search problem. For two decades, property portals solved the obvious question of where are the homes? They did it well enough…
Read More →
New Builds 2020
Breaking News

New-build stock continues to fall as demand subdued

The latest analysis from Property Inspect has found that demand for new-build homes remained subdued during the second quarter of 2026, with just 16.3% of available new-build properties securing a buyer. At the same time, new-build stock levels continued to decline, accounting for 5.8% of all homes listed on the market across Great Britain. Property Inspect…
Read More →
AI in estate agency letting agency property
Estate Agent Talk

5 Practical Examples: This is How AI is Changing Real Estate

There does not appear to be a single industry that is likely to be immune from the impact of AI. Therefore, it is no surprise to learn that seismic changes are happening in the world of real estate, thanks to the increasing influence of artificial intelligence. From using the technology to identify ways to save…
Read More →
Crowded beaches - Clacton-on-Sea in Essex
Breaking News

Overheating moves up the housing agenda

441,000 rental homes fail thermal comfort standards The latest analysis from Inventory Base has found that an estimated 441,000 private rented homes in England failed thermal comfort standards in 2024, accounting for 40.3% of all non-decent private rental properties, as major reforms to the Housing Health and Safety Rating System (HHSRS) came into force on…
Read More →
Breaking News

Annual house price growth slows in June

The latest Nationwide House Price Index for June 2026 shows that: House prices fell by -0.0% between May 2026 and June 2026. Annual house price growth increased to 2.2% in June 2026, up from 1.7% in May 2026. The average UK house price for June 2026 now stands at £277,484, down slightly from £278,024 in…
Read More →
Breaking News

Nationwide House Price Index May 2026

UK annual house price growth picked up to 3.0% in April, from 2.2% in March House prices were up 0.4% month on month Headlines Apr-26 Mar-26 Monthly Index* 554.8 552.7 Monthly Change* 0.4% 0.9% Annual Change 3.0% 2.2% Average Price (not seasonally adjusted) £278,880 £277,186 * Seasonally adjusted figure (note that monthly % changes are…
Read More →