We’ve almost made it to the end of 2020! It’s been a challenging year for all of us, and the news keeps coming: England moves back into tiered restrictions from 2 December 2020, but - in good news for landlords and their tenants - moving home will still be allowed, as it has been throughout the lockdown and as it has been since the end of the “firebreak” in Wales. The courts will also remain open during this time. Amidst the Covid-19 news, it’s easy to forget that Brexit is just a month away - which could have ramifications for international landlords’ UK bank accounts.

In the meantime, if you have any questions, feel free to get in touch. Until then, have very merry Christmas and a happy new year!

Our rental market performance over the past month

Rents were down and voids were up, with the average income of tenants also starting to slide during November. However, the market picked up speed again during the last week of November, with renewed activity sparking an above average rate of new applications during a traditionally quiet period for the market. Here’s a snapshot of how our agency performed in November:

• We achieved an average rent of £508
• Our deal turnaround times were 15 days on average
• On average the tenants we rent to have an income of £15280
• The average age of our tenants is 34

What the enhanced tiered system means for the housing market

The Government has announced that England will be moving back into a system of tiered restrictions as part of its “Covid-19 Winter Plan” for when the second national lockdown ends on 2 December. The lettings industry will be able to continue operating as it has during the lockdown, with “moving home” listed as being exempt from the restrictions on gatherings at every tier. Courts will also remain open during this time. The Covid-19 Winter Plan also emphasised that financial support will continue to be available to businesses until at least 31 March 2021, including the Coronavirus Job Retention Scheme, which had already been extended until the end of March 2021 for all parts of the UK and the Self-Employment Income Support Scheme, which is in place until April 2021.

We’ll continue to keep in touch with you and your tenants to stay abreast of how the Covid-19 restrictions are impacting you. Don’t hesitate to reach out if you have any questions.

Brexit and bank accounts

Non-UK resident landlords could see their UK bank accounts closed from next year as a result of Brexit. If you live abroad and haven’t already heard from your bank, there are a few things you can do. First, check if your bank can transfer the account to an EU branch in your country of residence, or if the bank plans to close its UK accounts for EEA customers who don’t have a UK residential address. You could also move to a UK bank that continues to offer accounts to non-UK residents, but be prepared that any new bank they move to may also change its policy in the future. You could also look into a multi-currency account, such as Transferwise. You should also check if you can receive rental payments into your local account, and what fees may apply.

Happy holidays,

The Torbay Property Management team