Lettings agency pays dearly for failing to protect clients’ money
Summary
Medway council has fined Homelet PMS Ltd £15,000 after finding the letting agent was not a member of an approved Client Money Protection scheme while handling client money. The case followed a routine inspection, repeated attempts to secure compliance, and ultimately civil debt recovery before the penalty was paid in full.
Why it matters
Letting agents handling client money must comply with Client Money Protection requirements, and failure to do so can lead to enforcement action and financial penalties. Surveyors involved in lettings, agency compliance or due diligence should note the regulatory expectation and the council’s willingness to pursue breaches.
Key points
- Homelet PMS Ltd was found not to be a member of a CMP scheme.
- The breach was identified during a routine inspection in January 2023.
- Medway council issued a warning letter, Notice of Intent and Final Notice before recovery action.
- The £15,000 civil penalty was eventually paid in full.
- The council said the rules are intended to protect tenants and landlords if something goes wrong.
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