Client Money Protection (CMP)

Three things you need to know about CMP

1. CMP protects landlords’ and tenants’ money Should a Propertymark Protected agent go bust or misuse your rent, deposit or other funds, Propertymark will reimburse you.*

2. Always double check your agent belongs to a good CMP scheme From 1 April 2019 property agents in the private rented sector holding client money are legally required to belong to a Client Money Protection scheme.

3. You do not have to prove fraud. You only need to provide supporting evidence that you have not received the money you were legally entitled to. You will need to provide the tenancy agreement or deposit protection certificate along with bank statements.

Propertymark has long believed that all letting agents should belong to a CMP scheme because the many agents who do not sign up represent a greater risk to landlords and tenants.

Peace of mind

Every year, unprotected landlords and tenants lose money when funds are misappropriated. The best way to ensure money is kept safe if something goes wrong is to always choose an agent who is a member of Propertymark. Propertymark is raising standards in the property industry, giving you the peace of mind that comes with Propertymark Protection.

“Client Money Protection is fundamental for tenants and landlords, ensuring that their money is protected even if the worst happens: the agent goes bust or runs off.”

David Cox
ARLA Propertymark Chief Executive

Please note that CMP does not cover disputes over the return of deposits.

Does your agent have CMP?

True crime

Rogue letting agent Manish Manek was found guilty of 17 counts of theft involving tenants’ deposits and rent owed to landlords.

He stole £47,000 before fleeing the UK in October 2012. A police investigation found that Manek had been putting tenant deposits and rent into his personal account.

He was finally arrested and sentenced to jail leaving landlords and tenants out of pocket. His victims never saw their money returned.

It is estimated that letting agents currently hold approximately £2.7 billion in client funds and yet, if a letting agent is not covered by CMP, both landlords and tenants could stand to lose their money.

Henry Spencer and Son's Client Money Handling Procedures are covered by Propertymark's Conduct and Membership rules. 

The Rules are available from Propertymark.