The cost of void periods is on the rise, and it’s enough to make even the most seasoned property mogul’s eyes water. According to a deep dive by management firm Rushbrook & Rathbone, void periods between tenancies have skyrocketed by as much as 52.9% in some parts of England over the past year. Yikes!
The average void period across England now stands at 24 days. With an average monthly rent of £1,438, this means landlords are losing a cool £1,135 every time a property sits empty. That’s a £129 increase from last year. In the West Midlands, the cost has surged by a whopping £307, marking a 52.9% rise. Meanwhile, the East Midlands, South West, and East of England aren’t far behind with significant hikes of their own.
London, ever the overachiever, boasts one of the shortest void periods at 16.6 days. But with its sky-high rents, landlords still face an average void cost of £1,252. The South East, South West, and East of England follow closely behind in the void cost stakes.
A spokesperson wisely points out that while landlords often focus on rental income, the money lost during void periods can be just as crucial. With ongoing costs like mortgage payments, insurance, and maintenance still ticking away, even a short void period can dent your returns.
So, what’s the takeaway? Keep an eagle eye on those void periods, and maybe consider a little extra charm offensive to keep those tenants renewing. After all, a full property is a happy property!
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