The void management headache and how to cure it

By Kevin Jackson, Inspired Energy’s Head of Social Value 

So, what are voids and why are they an issue? 

Voids are normally tenanted properties that are untenanted for a period ranging from a few days to several months, depending on the reason for the void. 

In most cases landlords will be looking to minimise void periods to the shortest time possible as they are incurring costs without gaining income during this time. 

There are also additional administration burdens with voids in managing the transition from outgoing tenant to void and then to occupation by the incoming tenant. Inspections, tests, EPC assessments and remedial works must also be carried out during the void period before a new tenant can move in. These all cost money to deliver. Some properties can be longterm voids if the properties require major works or if the property is of an unpopular type or in an unpopular area.

What is the scale of the void challenge? 

There are approximately 1,600 Registered Social Landlords in England and Wales (RSLs). They collectively manage over 2,000,000 homes with an annual energy bill of over £2.5bn. 

Most housing providers see a typical churn of 2%-10% per annum, which would be between 40,000 and 200,000 tenants moving out, and the same number of new tenants moving in each year. 

This activity would then require at least 80,000 – 400,000 interactions with the energy suppliers if there were to be only one interaction per change of tenancy. This would be doubled if the property had both electricity and gas connected. 

This administration is a timely and costly process without even considering the costs of the energy charged during the void period and as such should be streamlined. 

How can our void programme help? 

We already work with some 40 housing providers who manage over 750,000 homes and have a thorough understanding of the challenges that void management presents. 

Our void management service seeks to support housing providers in a number of ways: 

• Minimise the administration of the void management process. 

• Minimise the costs incurred from energy suppliers during the void period with void credit. 

• Minimise void disruption by clearing debt and sourcing RTI codes for prepayment meters. 

• Provide prompt support with a four-hour query response guarantee. 

• Reduce the likelihood of disconnections by consolidating void supplier invoices. 

• Support energy and carbon reduction with the installation of SMETs 2 smart meters. 

• Provide transparency of the void position together with costs and benefits in a dashboard. 

And importantly 

• Engage with the new incoming tenant to provide a whole market comparison to ensure an appropriate tariff is chosen over a standard variable rate tariff to address fuel poverty and social value. 

• Provide a handy energy efficiency guide, through our education arm ICON, to help the new tenant make informed choices about reducing their energy consumption, energy costs and carbon emissions utilising the smart meter data, which again supports fuel poverty and social value. 

If you would like to find out more about our Void Management service and how it can help you, please fill in our Void Management Insight Questionnaire   or contact wayne.brown@inspiredenergy.co.uk