Newly released research from London prop-tech lettings company, Home Made, reveals that this is reducing the options for tenants looking to move home and also impacting rental income for landlords.
The period of time where a property sits empty between tenancies varies across the city. In Hounslow and Camden, the average time it takes to fill an unoccupied property is 15 and 17 days respectively. However, in Havering and Bexley, the average time is 37 and 33 days. This lag time cost London landlords £730M in lost rent in 2019.
One of the key reasons properties lay empty is down to the lag time between a tenant handing in their notice and the time it takes a traditional letting agent to find new tenants. The study reveals that it takes on average 24 days for a London agency to let a property from the point they start their marketing efforts. Furthermore, the research reveals a six-day delay to agents marketing a property once tenants have served notice, thereby increasing the risk of a lengthy void period.
This study suggests that traditional methods to fill rental properties are not working in the interest of landlords, at a time when they are facing mounting financial and regulatory pressure.
Asaf Navot, founder and CEO of Home Made, comments: “Empty rental properties are hurting everyone. Landlords are needlessly losing value on their investments and tenants are missing out on the home of their dreams. Our research shows that inefficient agency models are one of the driving factors keeping London homes unoccupied.
“Landlords are paying agencies for a service and if they are not delivering, they need to hold them to account. We’d urge landlords to ask their letting agent for transparency at every stage, from the date their property will be available online, through viewing volumes and feedback, all the way to move-in date.
“At Home Made we make this information readily available for landlords to track so they can ensure that every detail from appealing imagery to negotiating contracts is handled efficiently and as if the property were our own.”
