The level of rental revenues lost by landlords due to void periods has increased by 19% across England over the last year, but climbs as high as 65% across some regions, Benham and Reeves reveals.
The latest data shows void periods went up from an average of 22 days to 24 days over the last year.
Average monthly rent has also increased to £1,375, which is 8.9% higher than this time last year.
The cost incurred by landlords across England as a result of the average void period now stands at £1,085.
However, across the North West, the length of the average void period has increased by 10 days to an average of 30 days, while rental values have increased by 9.8% or £79 per month.
This means the average loss of rental income incurred due to void periods averages at £876, a 65% increase compared to the same time last year.
The second largest increase is in London where landlords have seen a 36% increase in the level of rental income lost due to void periods. This loss now sits at an average of £1,611 and represents the highest cost of a void period of all regions in England.
The South West has seen the third largest increase in the cost of void period at 28% and is also home to the third largest overall cost at £920, behind the South East at £981.
Benham and Reeves director Marc von Grundherr says: “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.”
