It has been a legal requirement for all letting agents to be regulated by a Redress Scheme since 1st October 2014. Being regulated by a Redress Scheme means that:
The 3 government-approved letting agency redress schemes:
Letting agents must register with one of the schemes above.
Furthermore, in England and Wales, it is a requirement for letting agents to be a member of a client money protection scheme if they hold clients’ money. Here are some of the government-approved schemes:
Check which schemes your letting agent is a member of:
If your agent has not displayed the scheme that they are a member of on their website, then you should ask them directly or contact the schemes directly to ensure that the letting agents hold a valid membership.
Since it is a legal requirement for letting agents to be part of a government approved Redress Scheme, failure to comply means that letting agents can face penalties of up to £5,000 per branch.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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