Rising Void Periods Increase Landlord Losses Across England by 19%
Research from agency brand Benham and Reeves has revealed a 19% increase in rental revenue losses for landlords due to rising void periods across England in the past year.
The analysis focused on the duration of void periods in the rental market, the resulting lost rental income, and changes observed over the last 12 months. The findings show that void periods have extended from an average of 22 days to 24 days over the past year. Concurrently, the average monthly rent has risen by 8.9% to £1,375.
As a consequence, landlords are now incurring an average cost of £1,085 due to void periods—marking a significant 19% increase from the previous year.
However, the financial impact varies across different regions. In the North West, the average void period has increased by 10 days to 30 days, with rental values climbing by 9.8%, or £79 per month. This has resulted in an average rental income loss of £876, a staggering 65% increase compared to last year.
London landlords have experienced the second-largest annual increase in lost rental income due to void periods, with a 36% rise, resulting in an average loss of £1,611. This makes London the region with the highest cost of void periods in England.
The South West saw the third-largest increase in void period costs at 28%, with an overall cost of £920, following the South East at £981.
Marc von Grundherr, director of Benham and Reeves, commented, “Void periods have always been a challenge for landlords in the private rental sector. However, the significant rise in both the duration and financial impact of void periods over the past year is concerning, especially with the Renters’ Rights Bill on the horizon.”
“The transition to periodic tenancies from fixed-term contracts will allow tenants to leave with just two months’ notice, forcing landlords to repeatedly find new tenants and endure income losses from void periods. This will likely lead to longer and more frequent void periods, further reducing profit margins for buy-to-let investors at a time when we should be encouraging investment in the sector.”
