UK landlords are feeling the pinch as the cost of keeping their empty properties between tenancies soars by 12.9%, according to new research from property management firm Rushbrook & Rathbone. The average void period cost has now reached £1,135, up from £1,005 last year - a significant increase that's causing concern among landlords already grappling with rising compliance requirements and investment outlays.
The data analysis, combining ONS rental data with average void period figures, shows properties in England remain vacant for an average of 24 days between tenants. Although this may seem relatively short, the cumulative costs can be substantial, eating into a landlord's overall returns.
Regionally, the West Midlands has seen the biggest surge in void costs, experiencing a 52.9% increase over the last year - despite having one of the shortest average vacancy periods in England at just 16.6 days. London, meanwhile, registered the highest overall cost per void period, reaching £1,252. This highlights how varying rental values and associated overheads can lead to significant regional variations.
Roma Sharma, managing director at Rushbrook & Rathbone, stresses that while rental income is key for landlords, the financial implications of void periods are equally important. She notes that landlords remain responsible for mortgage payments, insurance premiums, service charges, and maintenance - even when a property is unoccupied. These ongoing expenses, combined with lost rental income, can have a major impact on profitability.
The findings come as the rental market faces significant headwinds, including a surge in property company insolvencies and landlords reassessing their portfolios due to evolving regulatory landscapes. Proactive management strategies, such as nurturing strong tenant relationships to encourage retention, alongside efficient maintenance and marketing, are suggested as ways to mitigate the financial impact of these empty periods.
This upward trend in void costs underlines the growing financial pressures on landlords across the buy-to-let sector. Void periods, often an overlooked element of total investment returns, are increasingly becoming a critical factor influencing the viability and profitability of rental properties in the UK.