Landlords across England have seen a rise in costs from void periods, according to research by Benham and Reeves.
The analysis found that lost rental revenues due to void periods have increased by 19% over the past year.
The average void period increased from 22 days to 24 days, while average monthly rents have increased by 8.9% to £1,375.
This combination has pushed the cost of void periods for landlords nationwide to an average of £1,085, marking a significant jump.
In the North West, void periods now average 30 days, with rents up by 9.8%, resulting in a loss of £876 in rental income, a sharp 65% rise from the previous year.
London landlords faced the second-highest increase in lost income at 36%, with the average loss at £1,611.
The South West saw a 28% rise in void period costs, totalling £920, just behind the South East at £981.
Marc von Grundherr, director of Benham and Reeves, said: “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 added: “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.”
