Landlords face rising losses from longer void periods

Landlords face rising losses from longer void periods

Landlords in England are losing significantly more rental income due to longer void periods between tenancies, with average losses increasing by nearly 58% over three years to over £1,000 per void.

Recent analysis by property management firm Rushbrook reveals that the average cost of a rental void across England rose from £696 in 2023 to £1,097 in 2026. This increase reflects both longer void durations and higher rental values, with the average void period extending from 17.5 days to 23.2 days over the same period.

The findings highlight a growing financial challenge for landlords, particularly portfolio holders, as voids become more frequent and prolonged. Effective property management and proactive maintenance planning are increasingly important to minimise these costly gaps in rental income.

Detailed findings on void costs and regional variations

Rushbrook’s research compared average void lengths and rental values across England, calculating the financial impact of properties sitting empty between tenancies. The overall 57.5% rise in void costs reflects a combination of extended vacancy periods and inflationary pressures on rents.

Regionally, the North East experienced the largest increase in void costs, soaring by 92.4% from £318 in 2023 to £612 in 2026. The West Midlands followed with a 62.5% rise, from £528 to £859. London remains the most expensive region in absolute terms, with the average void cost climbing 61.9% to £1,357.

Other notable increases include the South East (60.1%, £658 to £1,053) and the North West (59.5%, £457 to £728). Yorkshire and the Humber, the East of England, the South West, and the East Midlands also saw substantial rises ranging from 42.4% to 53.9%.

The trend of increasing void lengths is consistent, with average voids growing from 17.5 days in 2023 to 23.2 days in 2026. This steady increase over several years suggests structural challenges in letting processes or tenant turnover patterns.

Context of rising voids amid evolving rental market pressures

Longer void periods have a direct impact on landlords’ rental income, reducing profitability and potentially affecting mortgage servicing and maintenance budgets. The rise in void lengths could be linked to various factors including increased tenant demand variability, more stringent referencing processes, or delays in property preparation between tenancies.

Recent legislative changes, such as the Renters’ Rights Act and evolving safety and compliance obligations, may also contribute to longer turnaround times if additional inspections or repairs are needed before re-letting. Landlords and agents must balance compliance with efficiency to avoid excessive void durations.

Portfolio landlords face particular risks, as even small increases in void days per property can aggregate into significant income losses. The data underscores the importance of efficient property management and tenant retention strategies in a market where voids are becoming costlier and more frequent.

Practical implications for landlords and letting agents

Minimising void periods requires proactive planning well before a tenancy ends. Landlords should conduct thorough inspections ahead of lease expiry to identify maintenance needs early and schedule contractors promptly. Coordinating check-out and check-in processes efficiently can reduce turnaround times.

Letting agents play a key role in marketing properties quickly and vetting prospective tenants to avoid unnecessary delays. Maintaining good communication with outgoing tenants about move-out procedures can also help ensure properties are returned in good condition and ready for re-letting.

Investing in upgrades or improvements that enhance tenant satisfaction and encourage longer tenancies may reduce turnover frequency and thus void occurrences. However, landlords should weigh the cost of such investments against potential savings from reduced void periods.

Uncertainties and areas to monitor going forward

While the trend of rising void costs and durations is clear, the underlying causes are multifaceted and may evolve with market conditions and regulatory changes. It remains uncertain how upcoming policy shifts, economic factors, or tenant behaviour changes will influence void periods.

Landlords should monitor official guidance and market data regularly to anticipate changes that could affect letting times. The impact of new regulations on safety, licensing, and tenancy rights may introduce additional compliance steps that prolong voids if not managed efficiently.

Technological advancements in property management and tenant screening may offer tools to reduce void lengths, but adoption and effectiveness vary. Keeping abreast of innovations and best practices will be important for landlords aiming to control void-related losses.

What landlords should consider now

• Review and streamline end-of-tenancy procedures to reduce turnaround time.
• Plan maintenance and repairs in advance to avoid delays between tenancies.
• Work closely with letting agents to ensure prompt re-letting and tenant vetting.
• Assess whether property improvements could enhance tenant retention and reduce void frequency.
• Keep detailed records of void periods and associated costs to inform portfolio management decisions.
• Stay updated on legislative changes affecting tenancy management and compliance obligations.

Supporting landlords with void management and compliance

The Landlord Association (TLA) offers membership resources designed to help landlords and letting agents manage void periods more effectively. Through TLA’s compliance materials and practical guides, members can access up-to-date information on tenancy law, safety obligations, and property standards that impact letting timelines.

TLA is currently developing ORBIT, a property management and compliance platform in BETA testing. ORBIT aims to assist landlords in organising properties and portfolios, managing rental documentation, and recording key actions such as inspections, repairs, and communications. This can support landlords in reducing void durations by improving organisation and compliance tracking.

Exploring TLA membership and ORBIT BETA access can provide landlords with tools and information to better control void-related losses and maintain regulatory compliance in a changing rental market.

Looking ahead, landlords who prioritise efficient property turnaround and adapt to evolving regulations will be better positioned to mitigate the financial impact of longer voids and sustain rental income.

Sources: Landlord Today