Landlords are being reminded by the British Property Federation that despite recent legislative change which forces letting agents to join an Ombudsman Scheme, the scheme will not protect their money.

Although the Enterprise and Regulatory Reform Act 2013 has made it a requirement that letting agents should offer redress by being members of an Ombudsman scheme, there is no provision for protecting landlords’ monies, so it is quite possible that an agent may abscond with client funds, and it could prove difficult to recover the money.

Ian Fletcher, Director of Policy at the British Property Federation, said: “Landlords need to be wise in their choice of letting agent. Just because the letting agency sector is facing increased regulation does not mean their money will be protected. This week is Safe Agent Week, and it provides an excellent opportunity to reinforce a message that landlords still should be ensuring their agent is a Safe Agent offering client money protection.”

If landlords and tenants want to ensure their money is protected they should check that the agent they use has client money protection, by looking out for the Safe Agent logo.