The £5 billion question: What void periods really mean for landlords
Credit: Freepik
Did you know that empty rental properties cost UK landlords around £5 billion annually? This is not just a statistic; it’s a real financial issue for landlords throughout the country.
When properties are vacant between tenants, landlords lose money from rent. They still have to pay the mortgage and council tax, and spend time finding new tenants. The situation is so severe that many landlords are seeking dependable solutions to reduce these empty periods and ensure steady income.
Landlords face increasing challenges with void periods between tenants. They wonder how to reduce these costly gaps.
In this article, we will explore the real costs involved, the personal risks landlords face, and options available to help maintain financial stability.
The true cost of voids for landlords
Void periods are a serious financial problem for property owners. The losses go beyond missed rent. Landlords also have to deal with the following:
- Mortgage payments: They must still pay the mortgage, even when the property is empty.
- Council tax: In some cases, landlords might need to pay council tax on empty properties.
- Maintenance and re-letting costs: When a property is vacant, landlords often face repair costs and the expense of advertising for new tenants.
Additionally, landlords also face various other costs, including fees for letting agents and legal expenses, which can quickly add up. On average, landlords in the UK lose around £1,386 each month due to vacant properties. This figure includes lost rent, utilities, and maintenance costs.
The financial strain grows the longer a property stays empty. Extended void periods can force landlords to use their savings or take on additional debt, worsening the stress.
With the rising costs linked with vacancies, landlords need proactive solutions to protect their income and ensure long-term financial stability.
How voids impact landlords personally
The cost of possessing a vacant rental property affects landlords not only financially but personally as well. Many property owners rely on rental income for their daily expenses, to pay off their loans, or to save for the future. When this income stops, it can lead to financial stress and worry, sometimes forcing them to make personal sacrifices.
In fact, landlords in England are losing nearly £200 for each property annually because rental vacancies are taking longer than usual to fill. In March 2025, the average vacancy period was 21 days. This financial loss worsens when you consider ongoing costs like mortgage payments, insurance, and council tax, which persist to accumulate even when no rent is coming in.
Landlords often feel pressured to find new tenants quickly, leading to lower rent prices or rushed screenings that can cause future concerns. The emotional toll of prolonged vacancies can be just as challenging as the financial stress. Lost income and mounting costs create sleepless nights and worry, impacting landlords’ overall well-being.
What landlords can do about void periods
Landlords can reduce the financial burden of vacancies and maintain a steady income through various strategies. Here are some practical solutions:
Guaranteed rent schemes
Guaranteed rent schemes offer landlords a steady monthly income, even if the property is vacant. By partnering with property management companies that offer guaranteed rent, landlords can enjoy consistent earnings during tenant vacancies.
While these agreements typically involve lower payments than private rentals, they can lead to better overall returns on investment.
According to experts from City Borough Housing, which specialises in guaranteed rent and full-service property management across London, the real impact of void periods is often underestimated. ‘It is not just the rent you lose; it is the council tax, the mortgage payments, and the stress of re-letting. When you add these up, voids can wipe out thousands a year for an average landlord,’ their spokesperson explains.
Reduce rent temporarily
In a slow market with few tenants, landlords might temporarily reduce rent to attract tenants quickly. While this could cause short-term losses, it’s often more beneficial than leaving a property empty for months. Reducing the rent makes the property appealing and ensures steady cash flow.
Use short-term lettings
Landlords who struggle to fill vacant properties long-term might think about short-term letting on Airbnb in tourist hotspots. Though management can be more time-consuming, the potential income can exceed traditional renting when demand is steady.
Improve property appeal
Keeping the property in good shape can help you find tenants faster. Simple repairs, maintenance, and updates like fresh paint or new appliances can make the property more attractive and reduce the time it stays empty.
Work with a professional property management company
Hiring a professional property management company can reduce vacancy times. They offer access to potential tenants, advertising expertise, and efficient screening methods, easing the landlord’s workload and ensuring steady income.
Conclusion
Void periods can be a huge problem for landlords in the UK. They can lead to a loss of rental income and the stress of finding new tenants immediately. This can cause a lot of disruption.
Guaranteed rent schemes present a strong solution. These schemes help landlords by providing a steady income, even when the market changes.
Working with professional property management companies can offer stronger stability for landlords. This helps give them the security they need during uncertain times.
As we look towards 2026, guaranteed rent will remain an essential tool for landlords. It helps them protect their earnings, plan effectively, and create a more stable financial future.