Redress and client money schemes for UK property agents

Who has to join a redress scheme?

Three groups must belong to a government-approved redress scheme. These are estate agents dealing in residential property anywhere in the UK, letting agents in England and Wales, and property managers in England and Wales. If a customer has a complaint you cannot settle between you, they take it to the scheme. Only two schemes are approved: The Property Ombudsman and the Property Redress Scheme. A third scheme, Ombudsman Services: Property, lost its approval in August 2018, so any older paperwork naming it is out of date.

For letting agents and property managers in England, the duty has applied since 1 October 2014. Property management work covers arranging services, repairs, maintenance, improvements or insurance for residential premises on someone else's instructions. That includes block management for freeholders and residents' management companies. A residents' management company that owns the freehold and manages its own block does not have to join. Neither do housing associations and councils acting as social landlords, because they already belong to the Housing Ombudsman Scheme.

How client money protection works in England

Since 1 April 2019, letting and property management agents in England's private rented sector who hold clients' money have had to join an approved client money protection scheme. If the agent cannot repay landlords or tenants, for example because the firm goes into administration, the scheme compensates them. This is separate from tenancy deposit protection. The approved schemes are Client Money Protect, Money Shield, Propertymark, RICS, Safeagent (formerly NALS) and UKALA Client Money Protection.

Client money must be held in an account with a bank or building society authorised by the Financial Conduct Authority. The agent must get a certificate of membership, display it in every office open to the public and on its website, and give a copy free to anyone who asks. Most agents meet this through their trade body. If you join a firm as a negotiator or property manager, the firm holds the membership. You will still be expected to know what the certificate means and where it is displayed.

What happens if an agent does not join?

Trading Standards at the local council enforces both duties in England. A letting agent or property manager outside a redress scheme can be fined up to £5,000. The council must first send a notice of intent and give 28 days for representations, then issue a final notice. The agent can appeal against the penalty to the First-tier Tribunal. There is no cap on the number of fines, so an agent who keeps refusing to join can be fined again and again.

An estate agent outside a redress scheme risks a £1,000 fine and could face a formal warning or a prohibition order. Missing client money protection carries a penalty of up to £30,000. Failing to display the certificate, or to supply it on request, can bring a further fine of up to £5,000. In Wales, an agent who drops either requirement risks losing its Rent Smart Wales licence.

What it costs to join The Property Ombudsman

The Property Ombudsman publishes its fees, excluding VAT. Its basic Registration level meets the minimum redress requirement for residential sales across the UK and residential lettings in England. Full Membership costs a first-time joining fee of £74.26 and then £277.96 a year per branch, with three case reviews included. Residential Leasehold Management membership for block and estate managers costs £186.72 a year for firms managing fewer than 2,000 units. Each complaint case is then charged separately. The Property Redress Scheme sets its own fees, and joining either scheme is done online.

Pay

Lettings roles, United Kingdom

£27,500–42,700

London

£32,700–50,700

South East

£27,600–42,800

North East

£24,200–37,500

Scotland

£27,200–42,200

Wales

£24,600–38,100

GBP a year, before tax. Ranges run from the 25th to the 75th percentile, with a UK median of £32,500. They are based on the Office for National Statistics Annual Survey of Hours and Earnings, April 2026 (provisional), brought up to date with a wage index. Regional figures are modelled. Commission, branch size and compliance responsibility move pay within the range. Refer to the Lettings salary guide for figures from live adverts.

What you need

Redress scheme membershipMembership of The Property Ombudsman or the Property Redress Scheme is required for residential estate agency anywhere in the UK, and for letting or property management work in England and Wales.
Client money protection (England)Required for letting and property management agents who hold client money in the private rented sector. Membership must be with one of the six approved schemes.
Client accountClient money must be kept with a bank or building society authorised by the Financial Conduct Authority.
Certificate on displayThe CMP certificate must be shown in every public office and on the website, and given free to anyone who asks.
Wales licence conditionsLicensed agents must keep client money protection, professional indemnity insurance and redress membership for as long as they hold the Rent Smart Wales licence.
Scotland Code of PracticeEvery letting agent needs professional indemnity insurance. Agents who hold or handle client money also need one or more dedicated client accounts and client money protection insurance.

Across the UK

England	Residential estate agents, letting agents and property managers must join an approved redress scheme. Letting and management agents who hold client money must also join an approved CMP scheme.
Wales	Redress and client money protection are conditions of the Rent Smart Wales agent licence. You need money protection in place before you apply, and losing it puts the licence at risk.
Scotland	Residential estate agents must join a redress scheme. Under the Letting Agent Code of Practice, letting agents who handle client money need client money protection, and tenants and landlords take complaints to the First-tier Tribunal for Scotland (Housing and Property Chamber).
Northern Ireland	Residential estate agents must join a redress scheme. Letting agents do not have to join a client money protection scheme.

How to get there

Before tradingMap the work you doDecide whether the business does residential sales, lettings, property management or a mix, and in which nations. That sets which duties apply.
Before taking instructionsJoin a redress schemeJoin The Property Ombudsman or the Property Redress Scheme online. Estate agents who also let property should confirm the membership covers lettings work too.
Before holding moneyOpen a client accountOpen a designated account with an FCA-authorised bank or building society for any landlord or tenant money.
Before holding moneyJoin a CMP schemeIn England, join one of the six approved schemes, often through Propertymark, RICS, Safeagent or UKALA membership.
OngoingDisplay and renewPut the CMP certificate up in each office and on the website, and renew scheme memberships every year.

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Questions people ask

Can an agent choose between The Property Ombudsman and the Property Redress Scheme?

Yes. Both are government-approved, and either one meets the legal redress requirement. Each scheme publishes a list of its members, so councils and customers can check whether an agent belongs.

Do individual negotiators need to join a scheme themselves?

No. The duty falls on the business doing estate agency, lettings or property management work, so the firm holds the memberships. Staff should still know which schemes the firm belongs to, because customers ask and the CMP certificate must be supplied when requested.

Is client money protection the same as tenancy deposit protection?

No. Client money protection compensates landlords and tenants if an agent cannot repay money it holds, such as rent or repair funds. Tenancy deposit protection is a separate legal requirement covering tenants' deposits.

Do block managers need to join a redress scheme?

In England and Wales, yes, if they manage residential leasehold property on instructions from a freeholder, landlord or residents' management company. A residents' management company that owns the freehold and manages its own block is not caught by the requirement.

What is the fine for a letting agent with no redress scheme in England?

The council can fine the agent up to £5,000, after a notice of intent and 28 days to respond. It can impose further fines if the agent still fails to join, and the agent can appeal to the First-tier Tribunal.

Which redress and client money schemes must property agents join?