Why Landlords Must Demand Client Money Protection (CMP) from Letting Agents

12/05/2025

Client Money Protection is a government-approved scheme that protects landlords’ and tenants’ money if a letting agent goes bust or misappropriates client funds. This includes rent, deposits, and any other payments made to the agent in the course of managing your property.

In short, if your letting agent has Client Money Protection, the scheme protects your money—even if the agent disappears.

Why is Client Money Protection (CMP) Required?

When you hand over your property—and the rent it generates—to a letting agent, you’re trusting them with more than just bricks and mortar. You’re trusting them with your money, your legal compliance, and ultimately, your peace of mind.

But what happens when that trust is broken?

Unfortunately, cases continue to emerge across the UK where letting agents disappear or collapse, leaving landlords and tenants out of pocket. In many instances, agents without Client Money Protection (CMP) disappeared with the money.

Consequently, Client Money Protection isn’t just a legal requirement for agents—it’s an essential safety net for landlords.

The Legal Requirement for Letting Agents

Since April 1st, 2019, it has been a legal requirement for all letting agents in England who handle client money to:

  1. Belong to a government-approved CMP scheme

  2. Display their CMP certificate in their office and on their website.

  3. Provide a statement of account and client money handling procedures upon request.

  4. Maintain separate client and business accounts.

  5. Hold adequate professional indemnity insurance.

Letting agents who fail to comply can face penalties of up to £30,000, enforced by local authorities.

Why Client Money Protection Matters for You

If an agent doesn’t belong to a CMP scheme, landlords have no guaranteed way to recover their money when things go wrong. Agents can withhold rent, keep deposits, or disappear with funds meant for repairs—leaving landlords to deal with:

  • Financial loss

  • Legal costs

  • Tenant disputes

  • Stress and uncertainty

With CMP in place, you gain peace of mind, moreover a clear route to recover your money should the worst happen.

What Can Landlords Do?

  1. Ask for Proof: Always request a copy of your agent’s CMP certificate. Reputable agents will be transparent.

  2. Check the Register: CMP schemes maintain online directories of registered agents—search yours to verify.

  3. Review Contracts: Ensure your management agreement outlines how funds are protected.

  4. Watch for Red Flags: Unexplained rent delays, vague financial statements, or reluctance to provide documentation can indicate deeper issues.

  5. Report Non-Compliance: Suspect your agent isn’t playing by the rules? Contact your local council or Trading Standards.

To summarise, as a landlord you work hard to protect your investment. All this can be undone without Client Money Protection in place. CMP is the minimum safety measure you should expect—and demand—from your letting agent.

Protect your property. Safeguard your income. Insist on Client Money Protection.

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