The Government has announced an open consultation into making client money protection mandatory for lettings agents.
Depending on the responses, mandatory CMP could be added into the Housing and Planning Act 2016.
Currently, under the Consumer Rights Act 2015, letting agents are requirement to display in their offices and on their websites their fees; whether or not they are part of a CMP scheme; and which redress scheme they belong to.
The initiative is being supported by Baroness Hayter, Labour, who co-signed the consultation document along with Housing Minister Gavin Barwell.
The consultation asks 17 questions, including asking for information on CMP, whether it should be mandatory and if so, would it affect rents.
The consultation runs for six weeks and is set to close on the 3rd October 2016.
Isobel Thomson, Chief Executive of NALS, said:
“NALS wants to stamp out the illegal and fraudulent practices that put tenants and landlords at risk and tarnish our industry’s reputation. We have long argued that to protect the consumer, all letting agents must be covered by a client money protection scheme.
“We’re delighted to see this review, and that the Government has recognised SAFEagent’s excellent campaigning for full and mandatory CMP.
“NALS will be responding fully to the consultation to inform the argument that all agents should be covered by CMP, and we urge others to do so too. We hope this review will finally lead to mandatory CMP for all letting agents.”