What CMP covers, approved schemes and agent obligations
CMP insurance pays where a letting agent misappropriates client money — most commonly rent collected but not passed on to the landlord, or deposits held in the agent's client account and not returned. CMP is mandatory for all letting agents in England from 1 April 2019 (Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019). Approved schemes (MHCLG): Propertymark (NAEA/ARLA Propertymark CMP); UKALA CMP; RICS Client Money Protection; Money Shield; Client Money Protect; SAFEagent. Claim limits: typically £25,000-£50,000 per landlord claim; check individual scheme limits.
- Agent obligations: display CMP membership certificate prominently in every office open to the public and on the agent's website; provide CMP scheme details to any person who asks; notify the local Trading Standards authority of CMP membership
- Trading Standards enforcement: civil penalty up to £30,000 for non-membership or failure to display; separate from the Property Redress Scheme (TPO or PRS) obligation — agents must hold BOTH a CMP scheme membership AND a PRS membership
- Landlord verification checklist: (1) ask the agent for their CMP membership certificate before instructing; (2) search the scheme's public member register online — all major schemes have searchable registers; (3) check the agent's website for CMP logo and certificate details; (4) check the local authority letting agent register where available
- What CMP does not cover: disputes about service quality (professional indemnity insurance); negligence; situations where the landlord genuinely owes money to the agent
Scotland, Wales, Northern Ireland and landlord best practice
Scotland: mandatory CMP as part of the Letting Agent Register under the Housing (Scotland) Act 2014 — in force from 31 January 2018; Scottish letting agents must hold CMP as part of the registration requirements; landlords can verify registration at mygov.scot/letting-agent-registration. Wales: Rent Smart Wales (RSW) agent licence requires CMP as a condition of licence; check agent's RSW licence at rentsmart.gov.wales. NI: no mandatory CMP requirement; ask voluntarily whether the agent holds CMP; check membership of professional body (ARLA Propertymark; RICS).
- Agency agreement best practice: specify when rent is paid over (typically monthly within 5-7 business days of collection); confirm deposit must be protected in government-authorised scheme (DPS; TDS; MyDeposits); agents should operate a designated client bank account separate from their trading account
- Annual review: check CMP membership at each agency agreement renewal; if agent changes scheme, ask for the new certificate; CMP scheme changes should be notified to you proactively by the agent
- If a problem arises: contact the CMP scheme directly; do not provide the agent with additional funds; check bank statements for missed rental payments; if payment overdue, contact both Trading Standards and the CMP scheme simultaneously
- CMP claim process: submit written claim to the scheme with evidence of loss (bank statements; agency agreement; expected payment records); scheme investigates and pays where claim validated — allow 4-12 weeks for investigation