When investors look at buy to let they should consider the impact voids will have on their earnings. If it takes a long time to let the property and tenant turnover is high, it can result in huge losses. This is definitely something to look at. Finefair is the right team to help you find the best investment properties Lambeth and Greater London has.
How quick do properties let?
The most important thing to look at is how long on average properties in an area take to let. The longer they remain off the market, the bigger the losses. In areas with high demand these void periods may only last for a matter of weeks. On the other hand there are some areas with low demand and lots of properties where vacancies can last for months.
The longest voids are properties in SW1A. While the area is central and has lots of green space and tourist hotspots, it has sky high prices. Homes on the market are vacant for 140 days on average. This costs the owner over £14,300 over a five year period.
Areas in South East London have the smallest void periods. One of the best areas is SE11, covering part of Lambeth, Vauxhall, and also Kennington. Here the average number of days properties remain empty is just 29. In five years this kind of void can result in losses of around £4,600.
According to the latest data properties in W1K (Mayfair) cost the most in lost rent. The average void is a whopping 98 days. In five years this can result in losses in excess of £20,000. The problem is exacerbated because of the fact that homes in the area are among the most valuable in London.
What affects voids?
A number of different factors can make one area more popular for renting than another. You have to look at housing stocks, the type of tenants, local amenities, and proximity to work as well as leisure hotspots. Transport links are a major advantage; this is why SE11 has such high demand. Generally a combination of over-supply of properties and low demand are the biggest culprits.
Finefair appreciates why many people want to find out about the investment properties Lambeth has to offer. We have a lot of knowledge of the area and can provide the right services. Get in touch today if you have any questions for us.