Complete five registrations before you start trading as a lettings agent in England. Trading Standards and HMRC enforce these requirements with penalties from £5,000 to £30,000 for non-compliance.
Pre-trading checklist
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Join a redress scheme
Register with The Property Ombudsman (TPO) or Property Redress Scheme (PRS). Required before you trade. £5,000 fine per branch if not registered.
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Join a Client Money Protection scheme
Required before you hold any client money (rent, deposits, landlord funds). Six approved schemes available. Up to £30,000 fine for non-membership.
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Register for AML supervision
Register with HMRC if you manage properties yielding €10,000 or more per month. Estate agents must register regardless of value. £400 per premises.
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Review your fee structure
Check your fees comply with the Tenant Fees Act 2019. Most tenant fees are banned. Up to £30,000 fine for repeat breaches.
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Check property EPC ratings
Verify all properties you let have minimum EPC rating E. Register exemptions if needed. Up to £4,000 penalty per property.
1. Tenant Fees Act compliance
The Tenant Fees Act 2019 bans most fees charged to tenants and caps holding and security deposits.
2. Client Money Protection
Join a government-approved Client Money Protection (CMP) scheme before you hold any client money. This includes rent, deposits, and landlord funds.
3. Redress scheme membership
Join a government-approved redress scheme so tenants and landlords can complain free of charge if something goes wrong.
4. Anti-money laundering registration
Register with HMRC for AML supervision if you manage properties yielding £10,000 or more per month. Estate agents must register regardless of transaction value.
5. Energy efficiency standards
Check all properties you let have a minimum EPC rating of E before marketing them. Properties rated F or G cannot be let unless you register a valid exemption.
Enforcement and penalties
Local Trading Standards enforce CMP, redress, and Tenant Fees Act requirements. HMRC enforces AML registration. In 2017-2019, 46% of inspected lettings agents in London were non-compliant with redress scheme requirements.
- Tenant Fees Act breach (first)
- Up to £5,000 fine
- Tenant Fees Act breach (repeat within 5 years)
- Up to £30,000 or criminal prosecution
- No CMP membership
- Up to £30,000 per breach
- No redress scheme membership
- £5,000 per branch
- No AML registration
- Criminal prosecution
- Letting F/G rated property (3+ months)
- £4,000 penalty
Legal basis
Primary legislation and key regulations
Official guidance
Housing Act 2004 and Housing and Planning Act 2016 cases (T543) (opens in a new tab)
HMCTS
Investigatory powers guidance for Renters' Rights Act 2025 (opens in a new tab)
MHCLG
HSE's role in NSIP applications (opens in a new tab)
HSE
Fees you can charge as part of a tenancy (opens in a new tab)
MHCLG
Money laundering: understanding risks and taking action for estate agency and letting agency businesses (opens in a new tab)
HMRC
Tenants' energy efficiency improvements provisions - guidance for domestic landlords and tenants (opens in a new tab)
DESNZ