Client Money Protection for Landlords and Tenants

What is Client Money Protection (CMP)?

Client Money Protect (CMP) is a Government-authorised membership scheme for lettings and property agents in the UK to protect the client money such as rents and deposits received by our members. If your agent has CMP membership then you can rest assure that your money is protected and the agent is compliant with the current legislation.

It is a legal requirement for letting agents to join a client money protection scheme for the benefit of their clients, typically landlords and tenants, to safeguard money they hold on their clients’ behalf. In the event that the owners of the business misappropriate any of this money, landlords and tenants can contact us and make a compensation claim against the agent. If a genuine claim is accepted, the we will recompense the landlord and/or tenant and seek recovery from the letting agent or its owners.

How does CMP work?

It’s estimated that agents hold £2.7 billion of clients’ money. CMP is a reimbursement scheme designed to safeguard this money, which pays tenants and landlords back should an agent misappropriate the rent, deposit or other client funds. In simple terms, it means you’re protected should an agent unexpectedly go bust or run off.

To be eligible for CMP, the new legislation says that property agents need to prove that they are handling clients’ money appropriately. This means that agents need to:

  • hold this money in a separate bank account to their operating funds, and
  • have the appropriate indemnity insurance so client money can be reclaimed if any employees commit fraud

What does CMP cover?

Client money covered includes landlords’ repair funds, rents, service charges and arbitration fees. If a tenant pays a deposit, it must be protected in a government-authorised Tenancy Deposit Protection (TDP) scheme – so the money is safe during this period. Due to the existing TDP law, the new CMP legislation only needs to cover tenancy deposit money whilst it’s with the agent i.e. before or after it’s protected by a TDP scheme.

Agents who don’t handle client money, for example, when the rent is paid directly to the landlord, will still be able to trade without the need for CMP.

As a landlord, what do I need to do?

Although the new law will mean that it will be compulsory for agents handling client money to have CMP; rogue operators do still exist.
Before handing over any money or signing-up to an agreement with a property agent, make sure you see a copy of their CMP certificate and clarify which company provides the cover.

For more info visit:

How do I make a claim?

The law is designed to be simple: if you can prove an agent has misappropriated your funds, you’ll be able to make a claim through the CMP scheme. You won’t need to go through the courts to get your money back.

Firstly, report the missing money to the police. Secondly, make a claim through the agent’s CMP provider within 12 months. To do this, you’ll usually be asked to provide the following supporting documentation as evidence:

  • The tenancy agreement
  • Terms of business with the agent
  • Bank statements illustrating a pattern of payments and then non-payment by the agent
  • The tenant’s bank statements illustrating rental payments have been made

For more info visit:

is a member of Client Money Protect
Membership No. CMP004447
Issued: 16-4-20

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