A new website has launched, encouraging letting agents to buy client money protection insurance.
The launch is by Client Money Protect, which like the Property Redress Scheme is a wholly owned subsidiary of insurance firm Hamilton Fraser.
CMP told EYE that it wholly supports our new petition calling for the industry at large to back an amendment to the Housing and Planning Bill currently going through Parliament.
The amendment has been tabled by David Cox, managing director of ARLA.
It has widespread industry backing, including from all three tenancy deposit schemes, both property ombudsman schemes, the RICS, SafeAgent, NALS and UKALA.
CMP says the price of client money protection is £299 plus VAT per year for an agent with one to five branches and an annual turnover of under £1m. For agents not fitting those criteria, it gives a bespoke price.
While the Government has so far not made client money protection mandatory, it is now a legal requirement for letting agents in England and Wales to display whether they are a member of a client money protection scheme or not, with penalties of up to £5,000 for non-compliance enforced by trading standards.
CMP is currently the only client money protection membership scheme in the UK that agents can join without having to become a member of a trade body.
It covers landlords’ and tenants’ client money in the event that the agent goes out of business and does not have the client money kept in a separate account.
Sean Hooker, head of redress at the Property Redress Scheme, said: “I support any initiative which increases standards in the industry.
“The introduction of client money protection is the next logical step after consumer redress.
“It is important that a scheme is available to the smaller and medium sized agents who do not necessarily have the time or money to join one of the trade associations.”
EYE’s petition is here and we do please ask you to sign:
What is the definition of turnover; £1,000,000 going through the client cash account, about 105 properties or £1,000,000 fee income ; about 1000 properties and about 10,000,000 going through the client cash account?
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£360 quid a year seems expensive if i have no intention of stealing my clients money.
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But is stormingly great value if you do! £360 to give the appearance of honesty and decent trading Hiding your roguish intentions and pretending you’re being independently audited, bargain! You even get change out of the first month’s deposit you pilfer to pay for it.
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