Client Money Protection moves a step closer to becoming mandatory
There have been reports in the media regarding a recent amendment to the Housing and Planning Bill and the idea that client money protection could soon become mandatory.
Parliament is considering if the requirement for all letting agents to show whether they are part of a client money protection scheme is working and will then decide whether it should be mandatory for all agents to belong to a scheme.
Such schemes are in place to provide peace of mind for both landlords and tenants. A recent amendment to the bill bans letting agents from taking tenants money unless it is stored in separate money accounts and many are confident that the government will introduce this mandatory money protection measure in the near future.
Essentially it would mean that every letting agent that holds clients money must do so in a protected scheme so that if they were to go bankrupt, the money would be safe.
As a professional letting agent, L&B agree’s that this would be a positive and important change in legislation that would increase confidence in the lettings sector. No tenant should ever be faced with loosing a deposit for unfair reasons and we recommend that all prospective tenants check that the agent they are dealing with holds monies in a protected scheme. Lawrence and bright store all clients deposits using the DPS deposit protection scheme.
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