The Liberal Democrats have successfully ensured the Government adopt proposals to ensure the money of tenants and landlords is properly protected.
The Government has agreed to adopt the findings of his report by Liberal Democrat peer Lord Monroe Palmer. The report’s findings would make it mandatory for all lettings agents to have Client Money Protection.
About 60% of agents have voluntary cover, now at last the remaining 40% will be forced to either have cover or to cease to accept and hold tenants/landlords funds.
This follows the successful Lib Dem campaign for letting agent fees to be abolished for tenants, which was adopted in last year’s Autumn Statement.
Hull Liberal Democrat Councillor Charles Quinn welcomed the news. In November last year all of Hull’s councillors backed a motion by Charles calling for greater protection for tenants.
"Approximately one in five people in the city are private renters and that figure is set to rise. It is important that in Hull tenant’s money is protected from any rogue landlords.
“The Government must add bark to this bite. The key to producing a system that protects the rights of the many against the power of the few is to make sure the new rules are enforced.
"The Government have now seen sense; this injustice in the current system will be fixed protecting thousands against future exploitation. This is another victory in the Liberal Democrats' fight for a more fair and just system for renters and their landlords."