The financial strain on landlords across England is intensifying as the cost of void periods continues to climb, with new research revealing a significant rise in lost rental revenue. According to a study by London-based lettings and estate agent Benham and Reeves, landlords have seen void period costs soar by 19% in just a year, with some regions experiencing losses as high as 65%.
Void periods dragging on longer, costing landlords more
Benham and Reeves analysed rental market data across England, examining the duration of void periods, the resulting income loss, and year-on-year changes. The findings paint a concerning picture: the average void period has stretched from 22 days to 24 days, with rental prices rising 8.9% over the same period to an average of £1,375 per month.
These two factors combined mean landlords are now losing an average of £1,085 per void period—an increase of nearly a fifth compared to last year. However, the situation is far worse in some regions, particularly in the North West, where landlords are facing an alarming 65% rise in void-related losses.
In this region, the average void period has increased by 10 days to 30, while rental values have grown by 9.8% (£79 per month). As a result, the average rental income lost due to voids has skyrocketed to £876—up from £531 last year.
London landlords facing highest void costs
Landlords in the capital are also being hit hard. Void periods in London have become 36% more expensive in the past year, with the average landlord now losing £1,611 per vacant tenancy—the highest loss of any English region.
Elsewhere, the South West has seen a 28% rise in void costs, making it the third hardest-hit region, with landlords losing an average of £920 per void period. In the South East, void costs now sit at £981, making it the second most expensive region outside London.
Renters’ Reform Bill threatens further losses
Benham and Reeves director Marc von Grundherr warns that this trend could worsen with upcoming legislative changes.
“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’ Reform Bill on the horizon.”
The Bill, which seeks to replace fixed-term contracts with periodic tenancies, could make it easier for tenants to vacate properties with just two months’ notice. Von Grundherr argues this will leave landlords struggling to find new tenants more frequently, exacerbating both the length and frequency of void periods.
“So not only will they face longer void periods, but 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,” he added.
