July 2021 Update

The lettings market is ramping up as we head into summer, the busiest time of the year for the private rented sector. That hasn't stopped the news cycle, however, with the government announcing how right to rent checks on EU, EEA, and Swiss citizens will be carried out from 1 July 2021. Plus, it also confirmed that virtual checks on all other nationalities will continue until 31 August 2021

While all eyes were on the sales market ahead of the June 30th Stamp Duty Holiday deadline, the lettings market recorded a strong month according to the Goodlord Rental Index, with voids continuing to decrease and rents strengthening across England.

CHANGES TO RIGHT TO RENT CHECKS FOR EU, EEA, AND SWISS CITIZENS AND EXTENSION OF "COVID-ADJUSTED" CHECKS

The government has confirmed how letting agents and landlords will check the right to rent status of EU, EEA, and Swiss citizens from 1 July 2021, many of whom will no longer be able to physically document their right to rent in England after this date. Citizens from the EU, EEA, and Switzerland who have successfully applied to the EU Settlement Scheme or for a UK visa will need to use the government's new "View and Prove" online service to share their right to rent status with landlords and letting agents.

Meanwhile, the government has extended the virtual right to rent checks on all other nationalities in England by an extra month to 31 August 2021, to reflect the extension of lockdown restrictions. The government has also dropped its requirement for letting agents and landlords to carry out retrospective right to rent checks on tenants for this period.

We check your tenants' right to rent as part of all of our services, but if you have any questions on the changes, don't hesitate to get in touch.

WIND DOWN OF FURLOUGH SCHEME BEGINS WITH REINTRODUCTION OF EMPLOYER CONTRIBUTIONS

Businesses using the Government's Coronavirus Job Retention Scheme - also known as the furlough scheme - will be required to make a contribution to the cost of their furloughed employees wages. From 1 July 2021, the government will reduce its contribution to 70% of wages, down from 80%. The level of the employer's contribution will increase to 20% in August and September, until the scheme ends on 30 September 2021. Since the start of the pandemic, more than 11.5 million employees and 1.3 million employers have been supported by the Coronavirus Job Retention Scheme. Although the number of people using the scheme has dropped significantly since the beginning of the year, the most recent government data shows that at least 3.4 million people are still relying on furlough for their income. The end of the scheme could lead to a rise in unemployment, putting some tenants' incomes at risk. Forecasters at the Bank of England, as well as the government's spending watchdog, the Office for Budget Responsibility, are "expecting a small rise in unemployment after furlough ends".

We're still keeping in touch with your tenants to ensure that we're up to date on their current situation. If you have any questions or concerns, please feel free to get in touch.

OPTIONAL: We offer Rent Protection Insurance, which pays out for up to 15 months’ worth of rent, and it will continue to pay out for 75% rental payments for up to two months after vacant possession. The policy is designed to protect you against the risk of a tenant not paying their rent, breaching their agreement or damaging the property. Get in touch if you would like to learn more.