LATEST: Landlords and agents hit by 19% jump in void costs
Figures from Benham and Reeves show that in some places landlords are facing 65% higher losses due to empty properties.
Landlords are losing 19% more in revenue due to voids than a year ago, Benham and Reeves has claimed.
New figures from the London lettings agency highlight that in some areas of England the amount has rocketed to 65%. The research shows that void periods are on the up, increasing from an average of 22 days to 24 days.
At the same time, the average monthly rent is now 8.9% higher than this time last year at £1,375.
Cost incurred
So, the cost incurred by landlords across England as a result of the average void period now stands at £1,085. In the North West, the length of the average empty property period has increased by 10 days to 30, whilst rental values have increased by 9.8% or £79 per month.
65% higher
The average loss of rental income incurred due to void periods now averages £876, 65% higher than 12 months ago.
Landlords across London have seen the second largest annual increase in the level of rental income lost due to voids at 36% and, with this loss now sitting at an average of £1,611.
There’s been a considerable increase in both the time and rental income lost to void periods over the last year.”
Marc von Grundherr, Director at Benham and Reeves, 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,” he says.
“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.”
