Mandatory redress scheme to come into play from 1st October | CityLets YorkCityLets York

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From 1 October 2014, there will be a legal requirement for all letting agents and property management agents in England to be a member of an approved redress scheme.

Commenting on this legal obligation, David Cox, managing director of Association of Residential Letting Agents said:

“We welcome the introduction of compulsory redress. The industry needs regulating and this is the first step towards that. As a matter of course, letting agents hold money on behalf of the tenant and landlord but depending on the agent you choose, you could stand to lose your money as not all are covered by client money protection. ARLA is calling for all agents to have client money protection, which in many ways is similar to the Financial Services Compensation Scheme. For example, with ARLA Licensed agents, in the unlikely event a member goes bust or misappropriates a client’s funds we can cover losses for both the landlord and tenants.”