Mandatory CMP scheme membership requirements have been introduced today (April 1), exactly two months ahead of the Tenant Fees Act and are being hailed as a significant milestone for the lettings sector.

According to rental payment automation provider PayProp, the schemes introduction will see all-round benefits for agents, landlords and tenants

Making CMP membership a legal requirement – despite the vast majority of agents already being compliant – shows a regulatory strategy designed to promote industry-wide professionalisation.

CMP schemes are in place to protect funds paid to agents by landlords and tenants, such as rent and deposits. If a client’s money is stolen by the agent or the agency goes bankrupt, these schemes provide consumers with the recourse to make a claim for the return of their money.

 

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