New research shows the level of rental revenues lost by landlords due to void periods has increased by 19% across England over the last year.
What’s more, the figures, which have come from London-based lettings and estate agent Benham and Reeves, found the increase climbs as high as 65% across some regions of the nation.
To conduct the research, experts analysed the length of void periods across the rental market in England, the lost rental income as a result of these void periods, and how this has changed over the last year.
They discovered void periods have increased from an average of 22 days to 24. At the same time, the average monthly rent has also increased, now sitting 8.9% higher than this time last year at £1,375.
As a result, the cost incurred by landlords across England as a result of the average void period now stands at £1,085 – a 19% jump in the last year alone.
However, this cost is far greater across some regions of England versus others and nowhere more so than in the Northwest. Here, the length of the average void period has risen by 10 days, now averaging 30 days, whilst rental values have increased by 9.8% or £79 per month.
Landlords across London have seen the second largest annual increase in the level of rental income lost due to void periods at 36% and, with this loss now sitting at an average of £1,611, the capital is also home to the highest cost of a void period of all regions of England.
Director of Benham and Reeves, Marc von Grundherr, said: ’Void periods have long been a thorn in the side of the nation’s landlords but it’s an inevitable reality when operating within the private rental sector. However, there’s been a considerable increase in both the time and rental income lost to void periods over the last year and this is a worrying trend that could well continue with the Renters’ Rights Bill on the horizon.
‘The switch to periodic tenancies over fixed-term contracts will enable tenants to jump ship with just two months’ notice, putting landlords back at square one with respect to finding a tenant and once again enduring the income lost due to a void period.
‘So not only will they face longer void periods they are also likely to become more frequent, which will further reduce the profit margins of the average buy-to-let investor at a time when we should be encouraging investment into the sector.’
Photo by Jon Tyson via UnSplash
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