Void costs surge for England’s landlords

Void costs are rising across England by up to 64%, with landlords absorbing growing losses as both rents and letting gaps increase.

The research from Dwelly shows the average financial hit linked to empty properties has climbed 13.8% over the past year.

In some areas, the increase is much steeper, with one region recording a surge of nearly 64%.

It says the gap between tenants lengthened from 21 days in December 2024 to 23 days 12 months later.

Over the same period, average monthly rents rose from £1,370 to £1,424 which has pushed average void costs from £946 to £1,077.

Void costs can escalate

The firm’s head of M&A, Sam Humphreys, said: “Void periods are an inevitable reality of the rental market, and landlords are constantly seeking ways to limit their impact on profitability.

“That impact becomes even more pronounced in a higher interest rate environment, and this research highlights just how quickly costs can escalate.

“A seemingly modest two-day increase in void length has translated into an almost 14% rise in the average cost of a void period.”

He added: “While voids cannot be eliminated entirely, their duration can be significantly reduced.”

Mr Humphreys went on to say that working with efficient letting agents with streamlined processes can help accelerate re-letting.

Region with costliest voids

Landlords in the West Midlands have seen void-related losses jump 63.6% year on year, driven largely by a sharp rise in average vacancy lengths.

They grew from 18 days to 28 days.

Costs have climbed 19.6% in the East of England and 17.9% in the South East.

London recorded a 13.5% rise, while modest growth was seen in the North West at 6.1% and the South West at 5.2%.

The North East posted a 3% uplift, with the East Midlands largely flat at 0.9%.

Yorkshire and Humber was the only area to buck the trend as void costs edged down by -0.4%, reflecting a marginal improvement in re-letting times.

The average gap has shortened from 22 days to 21 days.