Void periods
A void period is any time a rental property is unoccupied and generating no rental income, most commonly the gap between one tenant moving out and the next moving in, but also periods following an eviction, a tenancy surrendered early, or an extended refurbishment before a re-let. During a void the landlord's fixed costs do not stop: mortgage payments, council tax, insurance premiums, and standing utility charges all continue to accrue against a zero-income property.
According to data published by Goodlord, the average void period across English regions in 2024 ranged from 18 days in London to 24 days in the West Midlands. Industry benchmarks typically use three weeks per year as a working planning assumption for a single buy-to-let property, though location, property type, and market conditions all affect the figure significantly.
The financial costs of a void period
Landlords should budget for the following during any void:
Mortgage payments. The mortgage does not pause. If the property carries a buy-to-let mortgage, the lender will still require its monthly payment regardless of occupancy.
Council tax. Once a tenancy ends, the council tax liability passes from the tenant to the landlord or property owner. Most councils in England allow a short exemption or discount for unfurnished empty properties, commonly up to one month, but this varies by council and is not guaranteed. Properties that remain empty for more than a year face escalating empty homes premiums under rules in force since April 2024. Most English councils now charge an additional 100% on top of the standard rate after 12 months' continuous vacancy, rising to 200% after five years and 300% after ten. For a full breakdown of how council tax applies during void periods and how to apply for any available exemption, see our guide to bills and council tax for rental properties.
Landlord insurance. Standard landlord insurance policies typically limit cover for unoccupied properties to 30 or 60 days. If the void extends beyond that threshold, the policy may be invalidated or key perils excluded. Landlords facing an extended void should contact their insurer promptly and, if necessary, arrange specialist unoccupied property cover. See our entry on landlord insurance for what to check before a long void begins.
Utilities and standing charges. Gas, electricity and water standing charges continue to accrue on an empty property. In winter, landlords typically need to keep heating running at a minimum to prevent pipe damage, adding to the cost.
Are void period expenses tax-deductible?
Yes, in most cases. HMRC treats expenses incurred during a void as allowable against rental income provided the property is still being actively marketed for letting and the landlord intends to continue the rental business. This means council tax payments, mortgage interest (subject to the current Section 24 rules for individual landlords), insurance premiums, utilities and repair costs during a void are all generally deductible in the tax year in which they are incurred, even though no rent is coming in. If the property forms part of a portfolio, a void-period loss on one property is automatically offset against the profits of other properties in the same rental business. Landlords should keep all bills and invoices from void periods as supporting evidence for their Self Assessment return.
From working with self-managing landlords across the UK, void-period expenses are one of the categories most frequently missed at tax time, particularly council tax payments and utility standing charges, which are easy to overlook when there is no monthly income to trigger a review of outgoings.
How the Renters' Rights Act 2025 affects voids
From 1 May 2026, all new private tenancies in England must be periodic assured tenancies under the Renters' Rights Act 2025. Tenants can give two months' notice to leave from the start of a tenancy, with no fixed-term end date. This increases the unpredictability of voids for some landlords: where a fixed-term tenancy previously gave advance notice of a likely void date (usually six or twelve months out), periodic tenancies can end with as little as two months' warning at any point.
The Act also affects how quickly a landlord can regain possession to re-let following a problem tenancy. With Section 21 "no-fault" evictions abolished, recovering possession through the courts using Section 8 grounds may extend a void materially beyond what would previously have been possible. Landlords should factor this into their financial planning and stress-testing.
How to reduce void periods
Void periods are unavoidable but manageable. The most effective approaches are:
Market before the tenancy ends. Start advertising as soon as a tenant serves notice, with their cooperation. The cost of a two-week void typically outweighs the value of waiting for a perfect tenant.
Price competitively. Overpriced properties sit empty longer. A rent reduction of £50 per month that fills a property two weeks sooner saves more than the annual difference in rent.
Keep the property in good condition. Well-maintained, promptly repaired properties attract better tenants more quickly and retain them for longer. Tenant retention is the most effective void-reduction strategy of all.
Coordinate maintenance within the void. Where repairs or redecoration are needed, scheduling them to fall within a void rather than mid-tenancy reduces disruption to tenants and the time needed to turn the property around.
Secure the property. An empty property is more vulnerable to damage, damp and opportunistic entry. Regular inspections, timer lighting, and adequate security reduce both insurance risk and the condition issues that extend voids.
Void periods also directly affect net returns, they are factored into net rental yield calculations, which is why two properties with identical gross yields can perform very differently once voids are accounted for. The rental cash flow calculator lets you model a void allowance alongside mortgage costs and running expenses to see the real monthly and annual cash flow for any property.
Frequently asked questions
Who pays council tax when a rental property is empty?
Once a tenancy ends, the council tax liability passes to the landlord. Many councils offer a short exemption, typically up to one month, for unfurnished empty properties, but this varies and some councils offer no discount at all. After 12 months of continuous vacancy, most English councils now apply an empty homes premium of 100%, effectively doubling the bill. Landlords should notify their council as soon as a tenancy ends and enquire about available discounts.
Does landlord insurance cover void periods?
Standard landlord insurance policies usually cover unoccupied properties for 30 to 60 days. Beyond that, some perils, such as escape of water, malicious damage or theft, may be excluded. If a void is likely to exceed your policy's unoccupied property threshold, contact your insurer and arrange unoccupied property cover before the gap opens. Failure to notify the insurer of extended vacancy can invalidate a claim even where the underlying risk is covered.
Can I deduct void period costs from my tax return?
Yes, provided the property is still available and being actively marketed for letting, HMRC allows void-period expenses, including council tax, insurance, mortgage interest (subject to Section 24 restrictions), utilities and repairs, to be deducted against rental income in the same tax year. Keep all invoices and bills from void periods as supporting evidence.
Does the Renters' Rights Act make void periods more common?
Not necessarily, but it makes them harder to predict and, in problem tenancy situations, potentially longer. With fixed-term tenancies abolished from 1 May 2026 and Section 21 evictions removed, tenants can leave with two months' notice at any time, and recovering possession from a non-cooperating tenant requires a court process that takes time. Landlords should stress-test their portfolios against an assumption of slightly higher average void frequency and plan cash reserves accordingly.
