Property agents must obtain a certificate confirming membership of an approved Client Money Protection (CMP) scheme and meet specific in-branch and online display requirements to comply with the law. Breaches can result in civil penalties of up to £5,000.

This decade has presented a near total transformation of the property sector with reduced confidence and supply, economic and interest rate uncertainty, dramatic changes in the conduct of consumers, new expectations among the workforce and the introduction of AI, the consequences of which are still being understood. As the only professional body dedicated to supporting sales, lettings, commercial agents, and auctioneers, Propertymark has reassessed not only the services we offer, but the whole structure of membership.

Being a letting agent or an estate agent with a letting portfolio demands juggling numerous responsibilities, from property management and tenant relations to day-to-day operations, plus the perpetual quest for new business. However, amidst these demands, being on top of client accounting is paramount.

A consultation launched by HM Treasury could be the catalyst for change in the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 and end the ongoing problem of access to appropriate banking services for letting agents, which is the result of banks failing to properly understand how client money protection and anti-money laundering apply to unregulated firms.

In the fast-paced world of property management, letting agents face a myriad of challenges, with client money management sitting high on the list of priorities. Ensuring the safety and transparency of client funds is not only a legal obligation; it’s good business practice.

Following a series of high-profile account closures, Propertymark has written to the Rt Hon Jeremy Hunt MP highlighting the ongoing issues and pushing for action from the UK Government to find solutions that reduce barriers for letting agents to operate.

The introduction of the Renter's (Reform) Bill resulted a lot of media coverage, with agents and landlords voicing valid concerns about the potential impact of future legislation on their businesses. However, it is important to note that the Bill has not yet become law and is still undergoing scrutiny and possible amendments.

Fines totalling £12,000 have been handed out to six letting agents in the London Borough of Haringey after a crackdown by Trading Standards.

Following the launch of Propertymark’s Calm About Compliance service in December 2022, designed to help property agents navigate the myriad of sector laws, regulations and guidance, we are partnering with PayProp to trial an extra service where agencies no longer incur costly annual accountant reports and health checks.

Letting agents can suffer from ‘choice overload’ when it comes to client accounting solutions, and with such a myriad of options available there has never been a better time to outsource. Choosing the right outsourcing provider is crucial to continued business success, so it is paramount that agents understand their options.

A landmark case of an agent being issued a five-figure fine for failing to follow CMP regulations has brought the legislation back into sharp focus.

On 10 January 2020, the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 came into force. This required letting agents who manage properties with monthly rental incomes of €10,000 or more (or equivalent amount in a Member State) to comply with anti-money laundering regulations.

Valid client money protection (CMP) insurance is a legal requirement for any letting agency that handles client money in England, Scotland and Wales. Agencies that flout this rule could face warnings, fines, and in some cases bans.

Annually, Propertymark PPD (Principal, Partner or Director) members have to submit a Client Money Examination Report to be inspected as part of their membership, and for every company, they are legally responsible.