The current CMP framework, what the Renters’ Rights Act changes, and what enterprise agencies need to do now.
Client Money Protection has been mandatory for letting agents in England since April 2019. Every agency must belong to a government-approved CMP scheme, display its membership, and comply with the scheme’s rules for how client money is held and reported. The RRA’s enhanced enforcement powers have raised the stakes for non-compliance.
The Current CMP Framework
The current approved schemes are Propertymark, RICS, SafeAgent, UKALA, and Client Money Protect. Key requirements:
- All client money is held in a dedicated client account, separate from the agency’s business account
- Membership of an approved CMP scheme, prominently displayed on the website, in offices, and in all advertisements
- Accurate records of all client money transactions are maintained and available for inspection
- Regular reconciliation records available for inspection
- Professional indemnity insurance meeting the CMP scheme’s requirements
What the Renters’ Rights Act Changes
The RRA does not alter CMP requirements directly but significantly raises the enforcement context. From 1 May 2026, local authorities have enhanced investigatory powers, including the ability to inspect documents and access third-party data. The PRS Database from late 2026 will eventually create a central record against which agent compliance can be cross-referenced. Civil penalties for client money protection failures can reach £30,000 per breach for serious or repeated non-compliance.
What Enterprise Agencies Need to Do
1. Confirm CMP Scheme Membership Is Current
Membership must be renewed annually and must cover all trading names and all branches. A lapsed membership, even briefly, is a breach.
2. Audit Client Money Accounting
Every transaction must be recorded, every client account must reconcile, and records must be immediately available for inspection. If the accounting system cannot produce a complete client money statement on demand, this is a compliance gap.
3. Review Display Requirements
CMP scheme membership must be displayed on the agency’s website, in all offices, and in all advertisements. Check this is current, including any branches opened since the requirement was last audited.
4. Confirm PI Insurance Levels
This is particularly relevant as client account values grow – the total funds flowing through the agency represents a direct exposure that PI cover must adequately reflect. Agencies whose rent roll has grown materially since their last policy review should confirm their cover keeps pace.
5. Assess Your Accounting Infrastructure
Agencies operating with native client accounting — where the financial record is part of the same system as the tenancy record are significantly better placed for CMP compliance. The RRA’s enhanced enforcement context makes manual client money management a more urgent problem than it was before May 2026.
CMP Compliance Built into the Platform
PropCo’s native client accounting maintains the records, reconciliations, and audit trails that CMP compliance requires as a function of normal operations.
See PropCo’s client accounting → propco.co.uk/platform/client-accounting/
See PropCo Enterprise → propco.co.uk/solutions/propco-enterprise/
Book a conversation → propco.co.uk/demo/
