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Surprise Amendment on CMP rules
In a surprise move the Government has amended the Consumer Rights Bill to require letting agents to display whether they offer client money protection (CMP).
The Consumer Rights Bill is currently at “report” stage in the House of Lords and already includes the requirement for agents to display all fees and charges to landlords and tenants.
The move on CMP was welcomed by SAFEagent which has been calling for inclusion under a CMP scheme to be made mandatory for all agents. It wrote to housing minister Brandon Lewis recently requesting that CMP be made mandatory. Lewis responded that he had ‘no plans at that time’ to make CMP mandatory but he appears to have had a change of heart.
Chair of the SAFEagent steering group, John Midgley said: “We are delighted that the Government has made this common sense move and listened to our concerns on the need for financial protection for landlords and tenants.
“This is the first step in ensuring that being part of a CMP scheme is made a mandatory requirement.
“We understand the Government’s focus on taking action to ensure transparency and fairness of letting agents’ fees and charges which addresses the financial aspects of entering into a tenancy but, in order to offer real consumer protection for the whole process agents should be part of a CMP Scheme. This new move goes part way to addressing the situation.
“Consumers should always ask an agent they are dealing with if they are part of a CMP scheme and if not why not?
“We would urge all peers to give their support to this amendment when it is debated in the House of Lords early next week.”
