2020 Membership Fees and Client Money Protection (CMP) Levy

2019 has been a year of significant change for the industry; both sales and lettings. There has been a plethora of announcements by Government and new laws covering the abolition of Section 21 evictions and a potential new Housing Court, reform to the home buying and selling process, the introduction of the Fifth Money Laundering Directive, mandatory CMP and the Tenant Fees Ban as well as the publication of the Regulation of Property Agents (RoPA) Working Group Report and Recommendations. Propertymark recognises that 2020 will be a challenging year for both sales and lettings agents and we have set our fees accordingly.

Membership Fees:

Membership Fees for 2020 will be £265 for one of Propertymark’s professional bodies and £150 for each additional Propertymark division to which you belong. Do remember to use your membership benefits and the significant discounts you can receive from various industry suppliers. For example, as a Propertymark member you receive a 12.5% discount on your TPO membership and protecting just 88 deposits per year with TDS will save you the cost of your membership fee.

 

Client Money Protection (CMP) Levy:

Mandatory CMP came into force on 1 April 2019 and as we noted in last year’s Open Letter, in order to comply with the requirements placed on Propertymark as a Government-approved CMP Provider, we have had to increase our insurance cover ten-fold (from £5million to £50million).

Last year, we announced a transitional arrangement. This was because, under the Regulations, CMP only covers “other client funds”; that is all client monies held in our members' client accounts except for tenancy deposits which are properly protected in a Government-authorised Tenancy Deposit Protection (TDP) scheme. Propertymark did not previously collect this data and therefore in 2019, the CMP Levy was set based on the total amount of client funds within our members client accounts.

During 2019, Propertymark collected this breakdown from our members and as such, for 2020 and beyond, the CMP Levy will be a graduated structure based on the value of “other clients funds” within our members’ client accounts. Therefore, from 1 January 2020, the Propertymark CMP Levy will be:

“Other Client Funds” Balance at last Accountant’s Report:CMP Levy:
Under £500,000 £385
£500,000 - £1million £1,020
£1million - £3million £1,935
£3million - £7million £3,235
£7million - £13million £4,820
Above £13million £6,305

Yours Faithfully,

 David Cox    undefined
David Cox   Mark Hayward
ARLA Propertymark Chief Executive   NAEA Propertymark Chief Executive