When investing in the London property market, one of the most critical decisions landlords face is whether to offer a furnished or unfurnished rental property.
This single choice can significantly influence your return on investment (ROI), tenant type, rental yield, and tenant retention rates.
At London Estate Agency, we guide landlords toward smart, data-driven decisions that optimise income and reduce vacancies.
Let’s explain what option offers the best ROI in today’s London rental market.
Understanding Furnished vs Unfurnished Rentals in London
Furnished properties typically include all essential furniture: beds, sofas, dining tables, wardrobes, and sometimes even kitchen appliances and crockery.
On the other hand, unfurnished properties usually come with only the bare minimum – think white goods, carpets, and curtains, allowing tenants to bring in their furnishings.
In a city as diverse and fast-paced as London, tenant needs vary widely, and landlords must tailor their offerings strategically to tap into the most lucrative segments.
Rental Yields: Furnished Properties Often Command Higher Rents
One of the most direct financial benefits of offering a furnished rental is the ability to charge a higher monthly rent.
On average, furnished properties in Central and Greater London yield 10–15% higher rent than their unfurnished counterparts.
This is particularly true in high-demand areas like Canary Wharf, Shoreditch, Notting Hill, and Clapham, where young professionals, expatriates, and students dominate the tenant pool.
At London Estate Agency, we’ve consistently seen landlords of furnished apartments enjoy more substantial short-to-mid-term ROI, especially when targeting corporate lets or short-term relocations.
Tenant Type and Demand Trends in London
Furnished rentals attract:
Young professionals
Expats and diplomats
Students
Corporate tenants
Digital nomads
These groups typically seek convenience and flexibility, often renting for 6–18 months. For landlords, this equates to:
Shorter void periods
Higher turnover
Potentially higher wear and tear
Unfurnished rentals attract:
Families
Long-term tenants
Relocators with their furniture
These tenants tend to stay longer, meaning lower tenant turnover and reduced costs associated with reletting and maintenance.
At London Estate Agency, we help landlords identify the ideal tenant profile based on property location and type, advising whether furnished or unfurnished is the most profitable.
Furnishing Costs vs ROI: A Strategic Investment
Furnishing a one-bedroom flat to a modern, professional standard in London may cost £2,000–£5,000, depending on quality and style. However, this cost can be recouped within 12–18 months in higher rents. Our team ensures that this investment pays off by:
Using durable, modern furnishings that reduce replacement costs
Offering interior styling consultations to boost visual appeal
Helping landlords claim furnishings as allowable expenses for tax deductions
By managing this process end-to-end, London Estate Agency transforms your property into a high-yield, fully managed asset.
Maintenance and Management: Who Wins?
While unfurnished properties are easier to maintain due to fewer items, furnished properties require more ongoing management, including inventory checks, regular wear-and-tear assessments, and faster replacements when items break.
At London Estate Agency, our in-house Property Management Team handles all of this, offering:
Full tenant support
Furniture replacement services
Annual condition reports
Inventory documentation
We reduce landlord stress while maintaining property standards – a critical factor for high-performing rentals.
Legal and Insurance Considerations
Furnished properties require a comprehensive inventory report, ideally supported by photographs.
They may involve additional insurance coverage for furniture and appliances. Our agency ensures full legal compliance, including:
Fire safety regulations
Electrical and gas safety certifications
Clear tenancy agreements that outline maintenance responsibilities
Our experienced legal team ensures your let is fully protected and profitable, whether furnished or unfurnished.
The Hybrid Solution: Part-Furnished Rentals
To cater to a broader market, many landlords in London now opt for part-furnished lets – providing essential furniture (like beds and wardrobes) but allowing tenants to bring personal items.
This model:
Appeals to both short-term and long-term tenants
Lowers upfront furnishing costs
Reduces wear and tear
Increases flexibility
We at London Estate Agency offer bespoke property staging solutions tailored to this hybrid model, optimising appeal and functionality.
Market Trends: The Data Favors Furnished in Prime Areas
Recent data from our internal analytics shows that in Zones 1–3, furnished properties experienced 12% faster lets and 18% fewer void days than unfurnished units, particularly in boroughs like Kensington & Chelsea, Westminster, and Tower Hamlets, where furnished units generated up to 20% more income annually, even after accounting for maintenance costs.
Unfurnished lets performed better in Zones 4–6, particularly among families seeking 3+ bedroom homes with long-term intentions.
We help landlords tap into real-time rental insights, providing area-specific recommendations that maximise returns.
Our Verdict: Furnished = Faster Let, Unfurnished = Longer Tenancy
Furnished: Best for central, high-demand areas with transient populations. Higher rent, quicker turnover.
Unfurnished: Ideal for suburban or family-oriented zones. Lower cost, longer stays, less maintenance.
At London Estate Agency, we offer customised lettings advice, helping landlords match property type to tenant demand for optimal ROI.
Why Choose London Estate Agency?
We are not just another estate agency. We are London’s full-service property experts, offering:
Free lettings consultations
In-house tenant referencing & rent protection
EPC certifications included
Tailored property management services
Tenant matching strategies based on property type
Our commitment is to maximise your investment while reducing the stress of day-to-day property management.
Whether you’re renting a luxury flat in Mayfair or a family home in Walthamstow, we have a proven system to deliver returns above market averages.
Let us handle the complexities of your London rental – and turn your property into a performing asset.
Speak with a lettings advisor and unlock your property’s full income potential.
FAQs
How much more can I charge for a furnished property in London?
On average, furnished properties command 10–15% higher rents, especially in prime locations or short-term lets.
Do furnished properties experience more tenant turnover?
Yes, furnished rentals often attract short-term tenants, but with professional management, void periods are reduced significantly.
Is it worth furnishing a property if it’s in Zone 5 or 6?
Typically, unfurnished properties perform better in suburban zones, especially for long-term tenants. However, our team can assess your property and recommend the best approach.
Can I mix furnished and unfurnished elements?
Absolutely. Many landlords opt for part-furnished options to appeal to a broader tenant base without high furnishing costs.
Do you offer interior design or staging help?
Our team provides furniture packages, styling advice, and virtual staging to boost your rental appeal and ROI.
