2019 Membership Fees and Client Money Protection (CMP) Levy

2018 has been a year of significant change for the industry; both sales and lettings. There has been a plethora of announcements by Government covering a potential new Housing Court, longer-term tenancies, reform to the home buying and selling process, and full regulation of property agents. This is all whilst preparations continue for the introduction of Tenant Fees Ban, mandatory Client Money Protection and the fifth Anti-Money Laundering Directive. Propertymark recognises that 2019 will be a challenging year for both sales and lettings agents and have therefore set our fees accordingly.

Membership Fees:

We are pleased to confirm there will be no change in Membership Fees for 2019 and these will remain at £230 per individual for one of Propertymark’s professional bodies and £100 for membership of each additional body.

Client Money Protection (CMP) Levy:

Mandatory CMP is due to come into force on 1 April 2019. In order to comply with the conditions which, the Regulations place on CMP schemes and apply as a Government-approved CMP Provider, Propertymark has been required to increase its insurance cover ten-fold (from £5million to £50million). This has had a dramatic impact on the costs associated with the scheme and whilst we have not increased the CMP Levy in two years, in order to apportion costs realistically to reflect the potential risk, a graduated CMP Levy based on the amount of money in your client account is being introduced. Therefore, from 1 January 2019, the Propertymark CMP Levy will be:

Client Account Balance at last Accountant’s Report:

CMP Levy:

Under £500,000

£360

£500,000 – £1million

£575

£1million – £3million

£1,020

£3million – £10million

£1,935

Above £10million

£4,685

Please Note: Due to the current uncertainty over the mandatory CMP Regulations and the insurance cover required by the schemes, this is a temporary charging structure for 2019 only and a new CMP structure will come into force from 1 January 2020 once the Regulations and cover levels are finalised and approved by Government. We hope this will then reduce the costs for members with client accounts under £3milllion for 2020 and beyond.

Important Note about Block Management: Due to the requirements of the mandatory CMP regulations, with effect from 1 January 2019, Propertymark’s CMP scheme is no longer able to provide cover for client money taken in connection with block management activities.

Yours faithfully,

David Cox

David Cox
Chief Executive, ARLA Propertymark

Mark Hayward Signature

Mark Hayward, FNAEA
Chief Executive, NAEA Propertymark