Agents have at most 16 months to get ready for letting fees ban, says ARLA

first_imgThe letting fees ban in England is expected to be introduced in April 2019 at the latest, the Association of Residential Letting Agents (ARLA) has confirmed, to give agents time to implement the looming Client Money Protection (CMP) regulations before the ban goes live.“Mandatory CMP needs to come into force before the letting fees ban does to prevent some more unscrupulous agents from propping up their businesses through their client funds when the ban comes into force,” ARLA’s Chief Executive David Cox told The Negotiator.He also revealed that ARLA is to tender to become one of the government’s approved CMP providers when the scheme goes live.Approved providerIn its consultation document the government says it would prefer for CMP to be administered by an approved list of providers rather than civil servants running a centrally-run scheme, in the same way the deposits protection and redress schemes work.ARLA’s existing CMP scheme – members must have it in place to join – is the largest in the industry with £1.6 billion of the total £2.7 billion client funds held by the industry covered.“It’s all about creating a level playing field – people assume that the industry is regulated, and that client money protection exists but they don’t understand that there is a two-tier market,” says David (pictured, left).“It’s a massive step forward and that the government has responded to the call, which we’ve been making now for years and years.”Until the new rules were suggested following the review of CMP by Baroness Hayter and Lord Palmer that concluded in October last year, the Government had only ‘encouraged’ letting agent firms to join CMP schemes and landlords and tenants to ‘choose’ agents with CMP via the Safe Agent Kite Mark. The same review also estimated that  between 60% and 80% of agents already offered CMP.letting fees ban ARLA Association of Residential Letting Agents David Cox November 6, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Agents have at most 16 months to get ready for letting fees ban, says ARLA previous nextAgents have at most 16 months to get ready for letting fees ban, says ARLAIndustry needs a year to bed in with CMP before the ban becomes law to prevent unscrupulous agents using client funds to prop up their businesses, says David Cox.Nigel Lewis6th November 201701,454 Viewslast_img

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