Almost two thirds of letting agents are failing to properly display Client Money Protection (CMP) certificates on their websites – despite the requirement being a legal obligation across the lettings sector.
New analysis from The Letting Partnership found that 62% of agents do not clearly show valid CMP certification online, raising concerns about how compliance is being demonstrated to landlords and tenants as regulation tightens.
The firm reviewed 200 letting agency websites at random and found that only 38% clearly displayed a valid CMP certificate, while the majority either failed to show one at all or did not present it in a way that could be easily verified.
Client Money Protection is a mandatory requirement for letting agents handling client funds, and failure to comply can lead to fines of up to £5,000 from Trading Standards.
RENTERS’ RIGHTS ACT SCRUTINY
The findings come as the sector prepares for further scrutiny under the Renters’ Rights Act, with landlords and tenants expected to place greater emphasis on transparency and visible compliance when choosing an agent.
The Letting Partnership warns that many agents may be meeting the rules internally but failing to demonstrate this publicly, creating both regulatory risk and a potential loss of business in a more competitive market.
In response to the findings, the company has launched a new initiative called TLP Assured, designed to help agents prove their compliance through independent checks and visible accreditation.
COMPLIANCE GAP
Chris Mason (main picture, inset), COO of The Letting Partnership, says: “What our analysis shows is that even with something as fundamental as Client Money Protection, there can be a gap between having the right processes in place and clearly demonstrating them.
“In some cases, this can create unnecessary risk, but it also means agents are missing an opportunity to build trust.
“With the Renters’ Rights Act already bringing significant legislative changes, trust between landlord and letting agent has never been more important.
“Landlords are increasingly relying on letting agents for guidance, and they need to feel confident that the agent they are working with is not only compliant but can clearly demonstrate that they are operating to a high standard.”
VISIBLE COMPLIANCE
And he adds: “As the market continues to evolve, compliance is becoming something that needs to be both delivered and demonstrated.
“By making compliance visible and independently verified, agents can provide reassurance, reduce risk, and better differentiate themselves in an increasingly competitive and regulated market.”
