Rising void costs hit landlord returns

Recent research highlights a significant rise in the costs landlords face during void periods when rental properties remain unoccupied between tenancies. This increase in void costs is impacting overall rental returns across England, with some regions experiencing sharper rises than others. Understanding these trends is essential for UK landlords and letting agents aiming to manage their portfolios effectively and maintain profitability.

Increasing Void Costs Across England

Property management specialists have reported that the average financial loss landlords incur during void periods has risen notably over the past year. In April 2026, the average void cost stood at approximately £1,135, marking a 12.9% increase from £1,005 in April 2025. This upward trend reflects the growing challenges landlords face in maintaining rental income continuity amid changing market conditions and operational expenses.

The void period refers to the time between tenancies when a property is unoccupied and not generating rental income. During this time, landlords continue to bear fixed costs such as mortgage repayments, insurance premiums, service charges, and maintenance expenses, all contributing to the overall financial impact of voids.

Regional Variations in Void Costs

London remains the region with the highest average void costs, despite landlords experiencing the shortest average void duration of around 16.6 days. The average financial loss during these voids in London is approximately £1,252. Following London, the South East, South West, and East of England regions report average void costs of £1,065, £1,060, and £1,059 respectively.

Some regions have witnessed particularly sharp increases in void costs over the past year. The West Midlands, for example, recorded the most significant rise, with void costs increasing by 52.9%, equivalent to an additional £307. The East Midlands also saw a substantial increase of 26.2%, adding £171 to the average void cost. The South West and East of England experienced rises of 20.9% (£183) and 18.7% (£167) respectively.

Understanding the Impact of Void Periods

While landlords often focus on the rental income achieved during tenancies, the losses incurred during void periods can be equally critical to overall profitability. Even relatively brief voids can have a considerable effect on net returns, especially when combined with ongoing financial obligations such as mortgage payments and property maintenance.

These void costs are compounded by increasing compliance demands and investment requirements within the private rented sector. Landlords may find that managing these periods effectively is vital to sustaining their rental business and meeting regulatory standards.

Average Void Duration and Financial Implications

Data indicates that the average void period across England is approximately 24 days. With an average monthly rent of £1,438, this translates to landlords losing around £1,135 in rental income during each void. This figure underscores the importance of minimising void durations to protect rental yields.

Given the rising costs and the financial strain void periods can impose, landlords and letting agents may need to review their strategies for tenant turnover, property marketing, and maintenance scheduling to reduce the length and frequency of voids.

What this means for landlords

For landlords, the increasing cost of void periods emphasises the need for proactive management of rental properties. Minimising the time a property remains empty between tenancies can help reduce financial losses and improve overall returns. This may involve streamlining tenant referencing processes, ensuring properties are well-maintained and ready for new tenants promptly, and adopting competitive rental pricing strategies.

Letting agents and property managers should also consider the broader financial implications of voids, including ongoing fixed costs and compliance obligations. Effective communication with landlords about these factors can support better decision-making and portfolio management.

What TLA members should consider

• Review and optimise tenant turnover processes to reduce void durations.
• Maintain properties proactively to ensure they are tenancy-ready without delay.
• Monitor regional market trends to set competitive rental rates that attract tenants swiftly.
• Plan for ongoing costs during void periods, including mortgage, insurance, and maintenance expenses.
• Stay informed about compliance requirements that may affect property readiness and tenant acceptance.
• Utilise resources such as the TLA Academy for training on effective property and tenancy management.

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/