Harfitt Property Agents v Shropshire Council [2025] UKFTT 279 (GRC) (04 March 2025)

Harfitt Property Agents v Shropshire Council [2025] UKFTT 279 (GRC) (04 March 2025)

Solicitors who engage in letting agency or property management work and hold client money are not exempt from the requirement to join an approved client money protection scheme under the 2019 Regulations. The appellant's activities fell within the statutory definitions, and the penalty imposed was proportionate and lawfully determined. The appeal is dismissed.

Citation
[2025] UKFTT 279 (GRC)
Parties
Appellant: Harfitt Property Agents; Respondent: Shropshire Council
Jurisdiction
United Kingdom
Judgment Date
04 March 2025
Procedural Posture
Appeal Under Schedule 9 of the Consumer Rights Act 2015 / Final Decision After Written Submissions, No Hearing
Outcome
Appeal dismissed
Legal Topics
Client Money Protection, Letting Agency Regulation, Financial Penalties, Solicitors Regulation, Statutory Interpretation
Regulatory Law Consumer Protection Property Law Client Money Protection Letting Agency Regulation Financial Penalties Solicitors Regulation Statutory Interpretation

Case Brief

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Parties

Harfitt Property Agents

Appellant

Shropshire Council

Respondent

Procedural Posture

Appeal Under Schedule 9 of the Consumer Rights Act 2015 / Final Decision After Written Submissions, No Hearing

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 2019 Regulations
  2. 2 Whether the absence of an explicit exemption for solicitors in the CMP Regulations excludes them from the duty to join a CMP scheme
  3. 3 Whether the penalty imposed is proportionate and reasonable in the circumstances

Ratio Decidendi

Solicitors who engage in letting agency or property management work and hold client money are not exempt from the requirement to join an approved client money protection scheme under the 2019 Regulations. The appellant's activities fell within the statutory definitions, and the penalty imposed was proportionate and lawfully determined. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

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