A Kent letting agent has paid a £15,000 civil penalty after failing to comply with legal requirements to protect client money.
Homelet PMS Ltd was fined by Medway Council for breaching the Client Money Protection Schemes for Property Agents Regulations 2019, which require all letting agents in England handling client funds to belong to an approved Client Money Protection (CMP) scheme.
The rules are designed to safeguard landlords’ and tenants’ money, including rent payments, tenancy deposits, holding deposits and funds held for property maintenance and management.
According to the council, a routine inspection in January 2023 found that Homelet PMS Ltd was not a member of a CMP scheme. Officers said advice and guidance were provided to help the business become compliant.
The investigation was later supported by evidence from an individual who reported that the company was holding their money while operating without Client Money Protection 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 said it received no response.
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.
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 significant financial penalties for non-compliance.
Cllr Alex Paterson, portfolio holder for Community Safety, Highways and Enforcement at Homelet PMS Ltd, said: “These rules are in place for a reason – to protect tenants and landlords in case something goes wrong. I would like to thank the officers involved for their persistence, and hope this serves as a warning to other businesses that we will take action when they fail to meet their legal obligations.”
Read the orginal article: https://propertyindustryeye.com/letting-agency-ordered-to-pay-15000-over-client-money-failings/
