Client Money Protection Levy 2018 Open Letter

Propertymark Client Money Protection more important than ever  

Propertymark led the campaign to persuade the Government to make Client Money Protection (CMP) mandatory for all letting agents. We are delighted that the Government has accepted our argument and with a consultation underway, progress is finally being made. We have fought hard for mandatory CMP because we firmly believe that comprehensive provision will reduce the risk to consumers and reduce the costs for individual agents.

We continue to deliver CMP at a fair and reasonable cost and it has never been more important to us to deliver value for money for our members. In the context of the increased financial pressures that members expect to face, with the impending Tenant Fees legislation, the CMP levy will not be increased in 2018 and remains at £340. Membership subscription fees will also remain unchanged this year.  

To support our commitment to reducing members’ costs, we are pleased to announce that we have worked with The Lettings Partnership to offer an alternative to the annual Accountants Report. Where firms meet eligibility criteria they will be able to save around £750 by completing a Lettings Partnership HealthCheck instead.

The eligibility criteria for HealthChecks are:

  • Less than £1 million in their client account;
  • Not using a Client Account Service Provider (CASP) or not a CASP yourself;
  • A year-end date of 31 December 2017 or beyond.

The HealthCheck will cost £250+VAT against an average fee of £1,000 for an Accountants Report. The service is due to be launched early in 2018.

Don’t forget to respond to the Government consultation on mandatory CMP to support our campaign to level the playing field and raise industry standards. CMP is a vital element of your membership but please make the most of newsletters, Property Professional magazine and the members’ area of the website to stay on top of developments right across the industry including stamp duty, the Draft Tenant Fees Bill and anti-money laundering.

Share your views with our policy team, submit your survey returns and respond to key industry consultations. The Government has listened to Propertymark in our lobbying for CMP to be mandatory because we represent around 11,500 estate agency offices and more than 9,000 individual letting agents, along with auctioneers, valuers, commercial agents and professional inventory providers.

Make sure that you promote your membership of the CMP scheme when pitching to clients, in your marketing materials, and on your website. Marketing materials are available via the online store. You are offering a protection that many of your competitors do not, along with higher levels of consumer protection than the law currently demands. Make sure that your clients understand that you choose to be regulated to demonstrate your high standards of professionalism.

Best regards

David Cox

David Cox
Chief Executive, ARLA Propertymark

Mark Hayward Signature

Mark Hayward, FNAEA
Chief Executive, NAEA Propertymark