Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Kent Letting Agent Fined £15,000 for Client Money Protection Breach
A Kent-based letting agency, Homelet PMS Ltd, has paid a £15,000 civil penalty after operating without the required client money protection (CMP). Medway Council issued the fine following a routine inspection and subsequent enforcement action.
A routine inspection in January 2023 by Medway Council found that Homelet PMS Ltd was not a member of an approved CMP scheme, as required by the Client Money Protection Schemes for Property Agents Regulations 2019. These regulations mandate that all letting agents in England handling client funds must belong to an approved CMP scheme.
Following the inspection, council officers provided advice and guidance to help the business achieve compliance. The investigation was supported by evidence from an individual who reported that the company was holding their money while operating without CMP 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 to the notice. 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 that local authorities are actively enforcing client money protection requirements. CMP schemes are designed to protect rent payments, tenancy deposits, holding deposits, and funds held for property maintenance and management. The regulations are part of broader consumer protection measures in the private rental sector.
The case serves as a reminder that CMP membership remains a legal requirement for all letting agents handling client funds, with local authorities able to impose financial penalties of up to £30,000 for non-compliance.
Source: PropertyWire