Why won’t the Government make Client Money Protection Insurance mandatory?

November 4, 2014

SAFEagent – the consumer mark that donates ‘safe’ lettings agents that are covered by Client Money Protection (CMP) schemes – has expressed its surprise and disappointment that the Housing Minister (Brandon Lewis MP) has declared that “at this time, he has no plans to make Client Money Protection Insurance (CMP) mandatory…”

Northwood was a founding member of this campaign and therefore take the protection of client’s money very seriously. If an agent doesn’t hold CMP, consumers should ask “Why not?”

The Housing Minister’s comments were in response to the request for Government to consider introducing an amendment to the Consumer Rights Bill to make inclusion in a CMP scheme mandatory for all lettings and management agents.

John Midgley, Chair of the SAFEagent Steering Group said:

“We are disappointed that this key consumer protection measure looks set to be rejected by Government and will continue with our campaign to which 3,000 lettings agent offices have already signed up. .

“We are pleased that the Minister recognizes the contribution the SAFEagent makes to consumer protection and we will continue with our efforts.

“Since we wrote to the Minister an amendment to the Consumer Rights Bill on the introduction of mandatory CMP has been laid in the House of Lords by Labour Peer, Baroness Hayter and we give her our full support.

“We will await with interest the outcome of the forthcoming debate and rally support from all within the industry to have this measure introduced which is of vital importance in increasing consumer protection in the Private Rented Sector”.

Eric Walker, Managing Director of NorthwoodUK comments, “It’s sad that the MP’s calling for regulation are the only group of people who can actually introduce legislation yet refuse to do so. We will not give up in our efforts to protect consumers.”

In this short video, Eric Walker, further shares his views

SAFEagent is widely recognised as the mark to look for to take the risk out of the rental sector, and has already been recognised by the Government and key industry organisations such as DPS, TDS, My Deposits, Ombudsman Services: Property, The Property Ombudsman Scheme, CAB, RLA and the Trading Standards Institute as well as being supported by industry suppliers such as Endsleigh and Imfuna.

http://safeagents.co.uk/

The SAFEagent campaign is driven by the SAFEagent Steering Group comprising of representatives from Northwood, Belvoir, Countrywide, Foxtons, Hunters,  Leaders, Spicerhaart, Touchstone, Winkworth and Xperience.

Northwood is one of the largest and most recognised lettings agents in the U.K. and the leading supplier of Guaranteed Rent to give landlords complete peace of mind.

Find us on Twitter @northwoodUK or visit our YouTube Channel.

 

 

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