Letting agents risk big fines by failing simple CMP rules
Random checks on 200 agency websites found that 62% were not displaying CMP certificates and could fall foul of Trading Standards.
Many letting agents are risking fines of up to £5,000 by failing to meet Client Money Protection (CMP) regulations, it has emerged.
Random checks on 200 agency websites found that 62% were not displaying CMP certificates despite it being a legal requirement.
Compliance standards
Compliancy platform The Letting Partnership (TLP), which carried out the research, says: “While many agents are operating to high compliance standards behind the scenes, the findings suggest that these standards are not always being clearly communicated.”
And this is particularly important as the sector prepares for the Renters’ Rights Act.
Failure to clearly display CMP certification can result in fines of up to £5,000 from Trading Standards, yet it remains a relatively simple compliance requirement that can be overlooked within day-to-day business operations, TLP says.
TLP has launched ‘TLP Assured’, a new initiative designed to help agents make their compliance visible and verifiable.
Agents are missing an opportunity to build trust.”
Chris Mason, COO of The Letting Partnership, says: “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,” he says.
“In some cases, this can create unnecessary risk, but it also means agents are missing an opportunity to build trust.”
Estate agencies fined £860,000 during Trading Standards CMP crackdown
