LSL Property Services figures revealed that the average property remained unoccupied for 36.4 days a year in October 2009, compared to the 30.9 days this year – making a saving of £125 for landlords.
The firm said that, with rents at a record high of £691 per month, landlords could lose £702 in rent through voids in the next 12 months – 12% less than a year ago. This will give landlords an average annual rental income of £7,594.
By comparison, a landlord looking to rent out a property one year ago would have seen £799 lost in voids, despite a much lower rent of £668 per month.
David Brown, commercial director of LSL Property Services, said: “Void periods are a nightmare scenario for landlords. Whilst their property remains vacant, landlords aren’t collecting the rent they need to pay their mortgage each month.
“However, void periods are decreasing. Tighter lending criteria has kept thousands of first-timers off the property ladder and most are staying in their current rental accommodation for longer. On top of this, tenant demand has rocketed up in the past 12 months. Frustrated first-time buyers swell the rental population, while the supply of properties has been kept in check by difficult mortgage finance conditions for landlords.”
According to the firm, nine in ten landlords (88%) expect void periods to be lower than four weeks in the next 12 months, with just 3% anticipating their properties will be vacant for ten weeks or longer.
Brown added: “With the recent cuts to the social housing budget, the private rental sector will have an even bigger stream of demand over the next few years. We anticipate the average void period will fall by another two days over the coming year, making property investment an even more attractive opportunity to professional investors.”
