Harfitt Property Agents v Shropshire Council

Harfitt Property Agents v Shropshire Council

Solicitors who engage in letting agency or property management work and hold client money are required to join an approved client money protection scheme under the CMPSR 2019, as there is no statutory exemption for solicitors. The penalty imposed was proportionate and in accordance with statutory guidance and policy, and the appellant's arguments regarding exemption and proportionality were not supported by the legislation or evidence.

Parties
Appellant: Harfitt Property Agents; Respondent: Shropshire Council
Jurisdiction
England and Wales
Judgment Date
14 July 2025
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Client Money Protection, Letting Agency Regulation, Financial Penalties, Solicitors' Regulatory Obligations
Regulatory Law Consumer Protection Property Law Client Money Protection Letting Agency Regulation Financial Penalties Solicitors' Regulatory Obligations

Case Brief

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Parties

Harfitt Property Agents

Appellant

Shropshire Council

Respondent

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether a solicitor's firm offering limited letting services is required to join an approved Client Money Protection (CMP) scheme under the Client Money Protection Schemes for Property Agents Regulations 2019 (CMPSR)
  2. 2 Whether the absence of an explicit exemption for solicitors in the CMPSR excludes them from the requirement
  3. 3 Whether the penalty imposed was proportionate and reasonable

Ratio Decidendi

Solicitors who engage in letting agency or property management work and hold client money are required to join an approved client money protection scheme under the CMPSR 2019, as there is no statutory exemption for solicitors. The penalty imposed was proportionate and in accordance with statutory guidance and policy, and the appellant's arguments regarding exemption and proportionality were not supported by the legislation or evidence.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The financial penalty of £8,400 imposed by Shropshire Council stands.