“Rogue letting agents will be hit by a tough new scheme to stop them running off with tenants’ cash after a Tory climbdown. Under-fire ministers added strict rules to their Housing Bill at the last minute to avoid an embarrassing House of Lords defeat. The ‘dog’s breakfast’ Tory Bill, which launches Starter Homes and extends the Right to Buy, has already suffered seven defeats and as many U-turns.

Now a new clause, drafted hours before a planned vote, will force private letting agents to put cash in Client Money Protection accounts. Until now agents could keep rent and deposits in their own accounts while passing it between landlords and tenants. But that left customers penniless if agents went bust or ran off criminally with the cash. …

… The rules were approved without opposition by the House of Lords.

Tory Housing Minister Baroness Williams said she was pleased to wave through the change after working with Labour and the Lib Dems. She added: “I listened very carefully to the points they’ve made.”

But meanwhile, the Housing Bill still suffered its seventh defeat tonight.

Peers voted 251-194 to let parish councils and neighbourhood forums appeal against developments which ride roughshod over their overall plans for the local area.”

http://www.mirror.co.uk/news/uk-news/tough-new-laws-force-rogue-7797054