The cost of a void period (the gap between one tenancy ending and the next beginning) has risen to an average of £1,135 in England - up 12.9% year-on-year - with the West Midlands recording an increase of 52.9%, according to research by property management firm Rushbrook Rathbone, published June 2026. The average empty period currently stands at 24 days.
What the Numbers Mean for Your Income
The number that matters here is not just the percentage rise. It is the absolute cash shortfall and what it does to your annual profit calculation.
A higher-rate taxpayer with a rental property earning £1,200 per month has a gross annual income of £14,400. A single 24-day void at the national average wipes out £1,135 of that - roughly 7.9% of annual gross rent. For tax purposes, that income simply does not exist. You cannot claim a "void loss" against other income. The property still incurs mortgage payments, insurance, and any service charges throughout that empty period. Those costs continue, while the income line drops to zero.
For example: if your annual rental income is £14,400, after one void period your effective gross drops to approximately £13,265. If allowable expenses (agent fees, maintenance, insurance) total £3,500, your taxable rental profit falls to around £9,765. At the higher rate of 40%, your income tax liability on that profit is approximately £3,906. You can model how void periods affect your rental income using our free stress test calculator.
Speak to your accountant about your specific position. These are illustrative figures only.
The Regional Picture Is Very Uneven
Roma Sharma, managing director at Rushbrook Rathbone, says: "Many landlords focus on the rent they achieve, but the rental income lost between tenancies is often just as important as the rent achieved during them."
According to the Rushbrook Rathbone research (June 2026), the regional breakdown shows significant variation. The West Midlands recorded the largest increase at 52.9% year-on-year. London carries the highest absolute cost at £1,252 per void period, despite having one of the shorter average vacancy windows in England at just 16.6 days. That higher London cost reflects elevated rent levels in the capital: even a short empty period loses more money than a longer one elsewhere.
This regional unevenness matters for landlords with properties across multiple areas. A void in Birmingham costs materially more than it did 12 months ago. Sharma adds: "A void period does not just mean a temporary loss of rental income - landlords are also still contending with mortgage payments, insurance costs, service charges, maintenance obligations and other outgoings whilst a property sits empty."
The Tax Position Most Landlords Overlook
Under Section 24 of the Finance (No.2) Act 2015 (the mortgage interest restriction introduced from 2017), individual landlords can no longer deduct mortgage interest directly from rental income. Instead, they receive a 20% tax credit on interest payments. This means a higher-rate taxpayer effectively loses an additional 20p in the pound on mortgage interest compared with pre-2017 rules.
Combine that with a void period and the financial squeeze tightens fast. During an empty period, your mortgage interest continues to run. The 20% credit is applied at year-end, but you are carrying the full cash cost throughout the void. For landlords exploring financing strategy and structure, this is worth reviewing.
If you hold the property through a limited company, the rules differ: companies can still deduct mortgage interest as a business expense. Whether that structure suits your situation depends on your income, plans, and wider tax position. You can read more about property investment strategies including structure decisions. Speak to your accountant before making any structural changes.
Key takeaways
The average void period cost in England rose 12.9% to £1,135 year-on-year, per Rushbrook Rathbone (June 2026)
The West Midlands saw the steepest increase at 52.9% - the largest regional jump in the dataset
London carries the highest absolute void cost at £1,252, driven by higher rents despite shorter average void periods of just 16.6 days
A single 24-day void on a £1,200/month property erases roughly 7.9% of annual gross rent - income that does not appear on your tax return
Fixed costs (mortgage, insurance, service charges) continue during a void, compressing net profit further regardless of Section 24 treatment
