Baroness Hayter is pushing the Government as to whether it will make CMP insurance mandatory for all lettings agents.

Hayter, who led a State-backed review into the prospects of such a scheme at the end of last year, issued a written parliamentary question asking about government action.

Her question, suggesting that ministers are dragging their heels, was answered this week by Lord Bourne of Aberystwyth, the Parliamentary Under Secretary of State at the Department for Communities and Local Government.

He said: “The Government encourages letting and management agents to join Client Money Protection schemes and encourages landlords and tenants to choose agents with Client Money Protection via the SafeAgent kitemark.”

He also cited Baroness Hayter’s own work, adding that the report is still being reviewed by ministers and would be responded to “in due course”.