A Kent-based letting agency has been held accountable for breaching regulations designed to safeguard landlord and tenant funds. Homelet PMS Ltd, a letting agency operating in the county, has paid a £15,000 civil penalty for failing to belong to an approved Client Money Protection (CMP) scheme.
The penalty was imposed by Medway Council, which conducted a routine inspection in January 2023 and discovered that Homelet PMS Ltd was not a member of a CMP scheme. Despite being provided with advice and guidance to achieve compliance, the agency continued to operate without the necessary protection in place.
The 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 agency failed to respond to the notice, prompting the council to issue a Final Notice confirming the penalty. The fine was eventually paid in full in March 2026.
The case highlights the importance of client money protection in the lettings sector and demonstrates that local authorities are actively enforcing these regulations. CMP schemes are designed to protect rent payments, tenancy deposits, holding deposits, and funds held for property maintenance and management.
The regulations form part of broader consumer protection measures in the private rental sector, which have also seen developments in areas such as rent-to-rent arrangements and dispute resolution. Cllr Alex Paterson, portfolio holder for Community Safety, Highways, and Enforcement at Medway Council, said: 'These rules are in place for a reason – to protect tenants and landlords in case something goes wrong.'