The Housing and Planning Act 2016 was given Royal Assent in May.
Certain elements of this legislation will impact letting agents and landlords
For many years it seems that there have been no guidelines for lettings agents regarding managing clients money. Parliament has finally included legislation which deals with Client Money Protection.
Section 133 Power to require property agents to join client money protection schemes
(1) The Secretary of State may by regulations require a property agent to be a member of— (a) a client money protection scheme approved by the Secretary of State for the purpose of the regulations, or (b) a government administered client money protection scheme that is designated by the Secretary of State for the purpose of the regulations. (2) The regulations may impose requirements about the nature of the membership that a property agent must obtain (for example, by requiring a property agent to obtain membership that results in a particular level of compensation being available). (3) The regulations shall— (a) require a property agent to obtain a certificate confirming the property agent’s membership of the scheme;
Housing and Planning Act 2016 (c. 22) Part 5 — Housing, estate agents and rent charges: other changes
(b) require the property agent to display or publish the certificate in accordance with the regulations; (c) require the property agent to produce a copy of the certificate, on request, in accordance with the regulations.