Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Kent Letting Agency Pays £15,000 Penalty for Client Money Protection Breach

A Kent letting agency, Homelet PMS Ltd, has been ordered to pay a £15,000 civil penalty after failing to comply with legal requirements to protect client money. The penalty was issued by Medway Council following breaches of the Client Money Protection Schemes for Property Agents Regulations 2019.

The regulations require all letting agents in England who handle client funds to be members of an approved Client Money Protection (CMP) scheme. These rules are designed to safeguard landlords’ and tenants’ money, including rent payments, tenancy deposits, holding deposits, and funds held for property maintenance and management.

According to Medway Council, a routine inspection in January 2023 found that Homelet PMS Ltd was not a member of a CMP scheme. Officers provided advice and guidance to help the business achieve compliance. The investigation was later supported by evidence from an individual who reported that the company was holding their money while operating without Client Money Protection in place.

After attempts to secure compliance failed, Medway Council issued a formal warning in May 2024, followed by a Notice of Intent to impose a £15,000 financial penalty in September 2024. The council reported receiving no response from the company. A Final Notice confirming the penalty was issued in November 2024. When the fine remained unpaid, the authority began civil debt recovery proceedings. The outstanding amount was eventually paid in full in March 2026 before further enforcement action was required.

This case highlights the ongoing legal requirement for all letting agents handling client funds to maintain CMP membership. Local authorities have the power to impose significant financial penalties for non-compliance.