The government’s existing strategy to protect rent paid by tenants to letting agents will fail to provide adequate protection for landlords, according to the Residential Landlords Association (RLA).
New rules requiring all letting agents in England to be members of a government approved Client Money Protection (CMP) Membership Scheme from April next year will protect the rental money that a tenant pays to a letting agent to pass onto their landlord in situations such as the agent ceasing trading.
But the landlord association points out that the details of the policy provided by the government reveal that the level of insurance held by CMP schemes will not cover the full value of the rental money held by the letting agent.