A number of letting agents are not clearly displaying Client Money Protection (CMP) certification online, despite it being a legal requirement, the latest analysis from The Letting Partnership suggests.

The firm reviewed 200 letting agency websites and found that 38% clearly showed a valid CMP certificate, while 62% did not display one clearly or at all.

CMP is intended to protect landlords’ and tenants’ funds, and agents are required to make evidence of cover publicly available. The findings indicate that, while compliance may be in place, it is not always visible.

Failing to display CMP certification can lead to fines of up to £5,000 from Trading Standards. The requirement is straightforward but can be missed in day-to-day operations.

The report also points to increasing scrutiny of compliance standards across the sector, particularly ahead of the Renters’ Rights Act, with greater emphasis on transparency.

In response, The Letting Partnership has introduced “TLP Assured”, an initiative offering independent assessment of client money processes through audits or standalone reviews. Agents that meet the criteria are listed publicly and provided with certification materials to demonstrate compliance.

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.”