The Association of Independent Inventory Clerks (AIIC) has called on landlords and letting agents to respond to the Government’s consultation on mandatory Client Money Protection (CMP).
AIIC Calls for Landlords and Letting Agents to Respond to CMP Consultation
The new Housing Minister, Gavin Barwell, launched the consultation at the end of August. Those that wish to respond to the consultation have until Monday 3rd October to do so.
CMP schemes protect rent and deposits held by letting agents, giving their clients peace of mind and the opportunity to recover funds, should they go missing.
In his open letter that launched the consultation, Barwell quoted industry estimates that letting agents hold around £3 billion worth of landlords’ and tenants’ money.
Earlier in the year, SAFEagent reported that one in five landlords and tenants are not protected by CMP.
A number of influential industry bodies, including the Association of Residential Letting Agents, the National Approved Letting Scheme and the Residential Landlords Association, have shown their support for the Government’s review of mandatory CMP, and now the AIIC is backing the consultation.
The Chair of the AIIC, Patricia Barber, believes that mandatory CMP would be a step in the right direction for the lettings industry.
She says: “The majority of letting agents are trustworthy and reliable, but that doesn’t mean that they don’t need to offer CMP. As average rents and deposits continue to rise, it’s only fair that landlords and tenants are provided with the peace of mind that their money is protected.
“One of the Government’s concerns is that law-abiding and conscientious agents shouldn’t have to pay the additional subscription to be a member of a CMP scheme. However, as John Midgley of SAFEagent pointed out, it’s only a small cost per year and one that the vast majority of customer-focused letting agents would be happy to set aside.”
She continues: “What’s more, the Government itself quotes figures which suggest that up to 80% of agents are already offering CMP to their clients. This perhaps shows that the small percentage who don’t may need to be the ones forced to join a scheme through making it mandatory.
“It’s pleasing that the Government is reviewing whether CMP should be compulsory, and we hope that as many passionate agents and landlords as possible contribute their insight to the outstanding consultation.”
The consultation is here: https://www.gov.uk/government/consultations/client-money-protection-cmp-review