Furnished vs Unfurnished: Which to Offer

If you strip the emotion out, "furnished vs unfurnished" is just a 5-year yield question: how much extra rent do you get, minus furniture cost, wear, voids and hassle.

1. Rent uplift and furnishing cost (2025-26 numbers)

Rent premium

Across most UK markets, a fully furnished flat will realistically command around 5-15% more rent than an unfurnished equivalent, depending on area and quality.

The premium is at the top end in:

London and prime city centres.

Student areas and corporate / relocation markets, where convenience is valued.

With average new rents now GBP 1,300-1,400/month outside London and GBP 2,600-2,700/month in London, even a 5-10% uplift is meaningful.

Cost to furnish

Current realistic ranges for a 1-2 bed:

Basic (IKEA level, decent but not fancy):

GBP 2,000-4,000, covering bed, mattress, sofa, dining set, storage, curtains and basic lighting.

Standard mid-range:

GBP 4,000-8,000 for more durable/attractive pieces.

Premium / corporate spec:

Often GBP 8,000-15,000+ in big cities, once you include better furniture, artwork, higher-end white goods and soft furnishings.

Your guide should encourage landlords to actually price up a specific shopping list locally, not guess.

2. Who each option suits

Furnished works best when you target:

Relocating professionals.

Students and post-grads.

Corporate / contract workers on 6-24 month postings.

Unfurnished is better aligned with:

Families.

Long-term locals.

Tenants bringing their own furniture who plan to stay 3+ years.

That tenant mix matters as much as the pure rent number, because each changeover costs you a void and a refresh.

3. Insurance, wear and tax treatment

Insurance

If you supply furniture, you need landlord contents cover for your items, on top of buildings:

This adds to the premium (often GBP 50-150/year depending on sums insured and area) and you should consider accidental damage cover on furnishings.

Wear, replacement and depreciation

Key items (beds, sofas, mattresses) will realistically need replacing every 3-7 years depending on quality and use.

From April 2016, the old "wear and tear allowance" is gone. You now have replacement relief for domestic items under ITA 2005 s311A:

You can claim a deduction for the cost of a like-for-like replacement item, less any proceeds for the old item, and excluding any element of improvement.

It applies to things like furniture, white goods, carpets and curtains; not to the original cost of kitting the place out, and not to structural improvements.

Your guide should spell that out: furnishing is capital up front; you only get tax relief when you replace items later, and only on the replacement element.

Storage

If you decide to let "unfurnished" after running furnished, you have to store or dispose of your items.

Storage at GBP 50-100/month quickly eats any marginal rent uplift; you either commit to furnished as a model or sell/donate furniture when you genuinely switch strategy.

Safety regs: FF(F)(S)R 1988

The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended) apply to all upholstered furniture you supply in a domestic let: sofas, armchairs, beds, mattresses, padded dining chairs, cushions, etc.

Requirements include:

Filling materials must meet ignition tests.

Covers must meet match/cigarette resistance tests.

Items must carry proper permanent fire-safety labels showing compliance.

If you furnish, you must only buy compliant items and keep evidence; Trading Standards can and do enforce this.

4. When furnished actually wins: 5-year worked example

Take a GBP 1,200/month unfurnished 2-bed in a decent city (2025-26 rents).

Assume:

Unfurnished rent: GBP 1,200/month.

Furnished premium (conservative): +10% = GBP 1,320/month.

Furnishing cost: GBP 4,000 (mid-range).

Replacement spend: GBP 1,000 over 5 years (mattress, sofa refresh).

Contents insurance difference: extra GBP 100/year.

Over 5 years (ignoring tax, same voids)

Unfurnished:

Rent: 1,200 x 12 x 5 = GBP 72,000.

Furnished:

Rent: 1,320 x 12 x 5 = GBP 79,200.

Extra gross rent vs unfurnished over 5 years: GBP 7,200.

Less: initial furnishing GBP 4,000.

Less: replacement spend GBP 1,000.

Less: extra insurance GBP 500 (5 x 100).

Net gain over 5 years: GBP 1,700.

So on these assumptions, furnished is only marginally better financially over 5 years, and that is before you account for:

Extra void risk if you end up with shorter tenancies.

Time and hassle dealing with broken furniture claims and replacements.

Where does furnished clearly win?

When the rent uplift is closer to 15-20% and you still keep voids low (busy London or corporate markets).

When you can reuse the same furniture for multiple cycles without major replacement.

Where does unfurnished win?

In "normal" towns where the furniture premium is closer to 5-10% and tenants stay longer when they bring their own kit.

For family houses, where unfurnished tenancies often run for 5-10 years, which crushes void costs.

5. What forums get wrong

Common myths to shut down:

"Furnished always makes more money because you can charge more rent."

The gross uplift is real; the net uplift over 5 years often shrinks once you factor in furniture cost, replacements, contents cover and potentially higher turnover, especially outside London and student/corporate markets.

"Fire labels are just a box-ticking thing, nobody checks."

FF(F)(S)R 1988 is enforced by Trading Standards; if you supply non-compliant upholstered furniture you are in breach of safety law, regardless of tenant consent.

"You can still claim wear-and-tear allowance so furniture is free."

The old 10% allowance is gone. Since April 2016, you only get replacement relief for domestic items under ITTOIA rules (for individuals, now in s311A and related provisions): initial fit-out is not deductible, only like-for-like replacements later.

"Tenants prefer furnished, so you should always furnish."

Preference depends on tenant type. Families and established locals often actively avoid furnished because they already own furniture. Students and relocators usually want furnished. One size does not fit all.

For PropertyKiln, the practical line is:

Furnished is a speciality play for city flats, students and corporate lets, where you can get a clear 10-15%+ rent premium and keep voids low. For bread-and-butter family houses and long-term tenancies, unfurnished is usually simpler, safer, and just as profitable once you do the 5-year maths.

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