Hundreds of landlords and tenants left devastated after letting agency collapse

17 May 2012 Categories: News

Hundreds of landlords and tenants left devastated after letting agency collapse

Canterbury letting agency, Joseph Newman, recently went into liquidation without a word of warning to its clients. Now after initial investigations by the chosen liquidators it seems the agency was in financial difficulties for some time, and as a result it is unlikely that any of their clients will see a single penny of the money owed to them.

So far 70 landlords and nearly 250 tenants have been identified as being clients of the letting agency, every one of which paid money over to Mr Newman and his staff, mainly in the form of deposits. Figures released by joint-liquidator, Fisher Partners, show that Joseph Newman owed a total of £413,321 when the firm collapsed, and it is thought that around £350,000 of this is owed to landlords and tenants. The total assets available for creditors stand at just £8000, none of which will be available for struggling tenants and landlords.

To make matters worse it seems the Joseph Newman letting agency was not a member of any recognised trade bodies, a fact that means he was under no obligation to purchase Client Money Protection Insurance.

The full liquidation investigation is predicted to take somewhere between 18 months and two years to complete.