Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Landlord Void Costs Up 12.9% as Vacancy Periods Lengthen
Void costs for landlords in England have increased by 12.9% year-on-year, rising from £1,005 to £1,135, according to research by property management firm Rushbrook & Rathbone. The average void period in England now stands at 24 days, based on analysis using ONS rental data and average void period figures from Goodlord.
The research highlights that landlords are facing mounting operational pressures across the rental sector. Regional differences were noted, with the West Midlands experiencing the largest increase in void costs at 52.9% over the past year. London recorded the highest overall void cost at £1,252 per period, despite having one of the shortest average vacancy periods in England at 16.6 days.
Rushbrook & Rathbone’s managing director, Roma Sharma, stated that void periods represent more than just lost rental income, as landlords must continue to cover mortgage payments, insurance, service charges, and maintenance while properties are empty. The findings underline that even short void periods can significantly affect overall returns, especially as landlords face increasing compliance requirements and investment costs.
The report comes amid broader challenges in the rental sector, including property company insolvencies reaching decade highs and landlords reassessing portfolios in light of regulatory changes. The research suggests that proactive management, such as maintaining strong tenant relationships, early planning, prompt maintenance, and effective marketing, can help reduce the impact of void periods.
The findings emphasise the growing financial pressure on landlords, with void periods representing a key factor in total investment returns as operational costs continue to rise across the buy-to-let sector.
Source: PropertyWire