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Recent analysis reveals a significant rise in the financial impact of void periods on landlords across England, with some regions experiencing increases of over 50% in the cost of lost rental income between tenancies. This development comes at a time when landlords are already managing growing expenses related to compliance, maintenance, and regulatory changes, highlighting the need for careful financial planning and risk management within the private rented sector.

Rising Void Period Costs Across England

Void periods—the intervals when rental properties remain unoccupied between tenancies—have become increasingly costly for landlords. Research conducted by property management firm Rushbrook & Rathbone examined current market rents alongside average void durations across England’s rental markets. Their findings indicate that the average void period now stands at 24 days, with an average monthly rent of £1,438. This equates to an average loss of approximately £1,135 per void period, marking a 12.9% increase compared to the previous year’s figure of £1,005.

The data underscores that void periods represent a substantial financial burden, as landlords not only lose rental income but must also continue to meet ongoing costs such as mortgage payments, insurance, and maintenance during these times. The escalation in void costs adds further pressure to landlords’ overall returns, particularly in a climate of increasing regulatory and compliance demands.

Regional Variations Highlighted

The analysis reveals notable regional disparities in the rise of void losses. The West Midlands has experienced the most pronounced increase, with void costs climbing by £307 year on year—a 52.9% surge. The East Midlands follows with a 26.2% rise, equating to an additional £171 per void period. The South West and East of England have also seen significant increases of 20.9% (£183) and 18.7% (£167) respectively.

Despite these sharp rises in some regions, London continues to have the highest absolute void costs due to its elevated rental values. Although the average void period in London is relatively short at 16.6 days, the average cost per void remains the highest at £1,252. The South East (£1,065), South West (£1,060), and East of England (£1,059) follow closely behind in terms of average void costs.

Financial Implications Beyond Lost Rent

Void periods impact landlords in multiple ways beyond the immediate loss of rental income. Properties left empty still incur fixed costs such as mortgage repayments, insurance premiums, service charges, and ongoing maintenance responsibilities. These outgoings continue unabated during voids, which means even short gaps between tenancies can significantly affect landlords’ net income.

Moreover, the current regulatory environment is increasing the financial and administrative burdens on landlords. Compliance with evolving legislation, including the Renters’ Rights Act and other tenancy reforms, often requires additional investment in property standards and management practices. These factors combine to heighten the importance of minimising void periods wherever possible.

Understanding the Causes and Context

Several factors contribute to the length and frequency of void periods. Market conditions, tenant demand, property location, and the efficiency of letting agents all play roles in determining how quickly a property is re-let. Additionally, the increased complexity of tenancy agreements and compliance checks under recent legislation may extend turnaround times between tenancies.

Landlords should also be aware that tenant expectations and market competition can influence void durations. Properties that fail to meet current standards or lack competitive features may remain vacant longer, further increasing costs. Effective property management and proactive maintenance can help reduce void periods and associated losses.

What this means for landlords

For landlords, the rising cost of void periods emphasises the need for strategic financial planning and property management. It is essential to account for potential void losses when calculating expected rental yields and to maintain sufficient reserves to cover periods without rental income. Landlords may also need to review their letting strategies and consider how to minimise void durations through improved marketing, tenant screening, and property upkeep.

Letting agents and property managers should support landlords by providing accurate market data and advice on reducing void periods. This includes ensuring properties are presented well, promptly addressing maintenance issues, and facilitating efficient tenant turnover. Awareness of regional variations in void costs can help landlords tailor their approaches according to local market conditions.

What TLA members should consider

• Review and update financial projections to include realistic void period costs based on current market data.
• Maintain adequate cash reserves to cover ongoing expenses during voids, including mortgage payments and maintenance.
• Work closely with letting agents to improve tenant retention and reduce turnaround times between tenancies.
• Ensure properties meet or exceed current compliance standards to attract tenants quickly and avoid delays.
• Monitor regional market trends to understand local void period risks and adjust letting strategies accordingly.
• Utilise resources such as the TLA Academy for training on effective property management and compliance.

TLA Training Academy

The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/

TLA update

The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/