Furnished vs Unfurnished Lets in London: Rent Premium and Running Costs
Furnished or unfurnished? The answer affects the rent you can charge in London, your costs and the sort of tenant you attract. Furnished flats usually earn a premium in London, but not always enough to justify the outlay, and not for every tenant.
This guide compares the two options, explains what the evidence says about the rent premium, sets out the costs and risks, and shows how furnishing connects with other ways of letting a London property.
Quick answer: Furnished lets can earn a premium in London, with studies suggesting somewhere around 15% to 20%, but the figure varies by area and property. If you let long term to families, an unfurnished flat is often easier and cheaper to run. If you want short, corporate or relocation stays, you must furnish to a high standard.
What furnished and unfurnished mean
Unfurnished means the flat comes with fixed fittings only, such as bathroom suite, kitchen units and sometimes white goods. The tenant brings everything else.
Furnished means the landlord supplies furniture and essentials. The range is wide, from a bed and sofa to a fully equipped home with linen, crockery and a workspace. “Part-furnished” sits in between, often with white goods and some furniture.
The more the landlord supplies, the more the landlord owns, maintains and replaces.
The rent premium: what the evidence says
There is no single reliable number, and it is worth being sceptical of any one headline.
- A Reapit and Dataloft report found tenants paid about a 16% premium in London for furnished two-bedroom flats, and around 10% outside the capital. That worked out to nearly two months’ extra rent a year in London.
- OnTheMarket research found furnished flats can command up to 21% more than unfurnished ones, and estimated about £1,800 to furnish a two-bedroom flat with basics.
- A 2024 survey by MADE, a furniture retailer, claimed a 20% average premium across UK cities. That survey used a small sample of about 500 people and did not break out London figures.
Treat these as direction, not proof. They come from different years, with different samples, and some are produced by companies with an interest in selling furniture. The best evidence for your flat is what comparable furnished and unfurnished flats in your street are asking, which a local agent can show you. You can read the coverage in Property Reporter and Property Industry Eye.
The costs you take on when you furnish
Furnishing is not just a one-off purchase. Before you decide, count each of these.
- Initial fit-out. Beds, sofa, tables, storage, appliances, curtains, lighting and basics. Quality items last longer and look better in photos.
- Replacement. Mattresses, sofas and appliances wear out. Plan a replacement budget, not just a purchase.
- Fire safety. Furniture and furnishings supplied in a let must meet fire safety regulations, so avoid second-hand items without proper labels.
- Inventory. A detailed, photographed inventory protects both sides when the tenancy ends.
- Wear and tear disputes. More items means more potential deposit disagreements.
- Void periods. Furnished flats can appeal to short-stay tenants who move more often, which can mean more change-overs.
When unfurnished works better
An unfurnished flat often makes sense when:
- You plan a long let to a family, a couple or sharers who have their own furniture.
- You want low maintenance and minimal responsibility.
- The area attracts long-term residents who value stability over convenience.
- Your budget is limited, and furnishing would delay your return.
Long lets in England are also changing. Since 1 May 2026 the Renters’ Rights Act has made standard tenancies periodic, so a landlord cannot rely on a fixed term to recover furnishing costs. That makes the payback period on furniture more important than it used to be.
When furnished works better
A furnished flat usually wins when:
- Tenants are professionals, students or relocators who arrive with little.
- The flat is near transport, offices, hospitals or universities.
- You want flexibility, for example a mix of shorter stays.
- You want to move up to short-let or corporate letting, where furnishing is mandatory.
London has a stronger market for furnished lets than most of the country. Property Reporter reported in 2018 that around 60% of London lettings were furnished compared with roughly a quarter elsewhere. Figures change, but the pattern holds: furnished stock is normal in London.
Furnished vs unfurnished vs short let
It helps to see furnishing as a spectrum rather than a choice of two.
- Unfurnished long let. Lowest cost, lowest income, stable tenant.
- Furnished long let. Higher rent, higher cost, some premium for convenience.
- Corporate or relocation let. Fully furnished and serviced, usually 90 nights or more, higher rate per night.
- Short let. Fully furnished and serviced, strongest nightly rates, capped at 90 nights a year for a whole London home without planning permission.
Our comparison of short let vs long let in London goes through the income side. Our guide to corporate lets explains how to fill the rest of the year. For a view of the figures, see how much a short let can earn in London.
A quick payback test
You can decide with a simple calculation.
- Add up the full furnishing cost, including delivery, assembly and a replacement allowance.
- Find the monthly premium a comparable furnished flat achieves over an unfurnished one nearby.
- Divide the cost by the monthly premium. That is the number of months to recover your outlay.
- Compare it with your expected tenancy length. If you expect the tenant to stay a year or more, a payback of under 12 months is attractive. If the payback is two years, think again.
For example, if furnishing costs £4,000 and the premium is £250 a month, payback takes 16 months. These figures are illustrative.
Who looks after it
If you do furnish, the standard of the furniture and the care taken matter. Presentation, cleaning, repairs and inventories all affect the rent you achieve and the deposit disputes you avoid. At Corporate Stays we handle furnishing standards, in-house cleaning and maintenance for the properties we manage. If you want a view on whether your flat suits a long let, corporate let or short let, you can get a free income estimate or message us on WhatsApp.
Frequently asked questions
How much more rent can I charge for a furnished flat in London?
There is no fixed premium. A Reapit and Dataloft report found tenants paid around 16 per cent more for furnished two-bedroom flats in London, and a 2024 survey by furniture retailer MADE claimed an average premium of about 20 per cent across 20 UK cities. Both are surveys with limits, so ask a local agent what comparable flats achieve.
How much does it cost to furnish a London rental?
OnTheMarket research reported by Property Reporter put a two-bedroom flat at about £1,800 for basics such as a sofa, beds, a desk and a television. A quality, durable fit-out for a corporate or short-let standard costs considerably more.
Do tenants prefer furnished or unfurnished flats in London?
London has more furnished lets than most of the UK. Property Reporter reported in 2018 that around 60 per cent of London lettings were furnished compared with about 25 per cent elsewhere. Demand is strongest among short-stay and relocating tenants.
Who is responsible for furniture in a furnished let?
The landlord provides and maintains the furniture. A detailed inventory with photographs at the start of the tenancy helps with end-of-tenancy deposit disputes. Furniture and furnishings supplied must also meet fire safety regulations.
Is furnished better than unfurnished for short lets?
Yes. Short lets and corporate lets must be fully furnished and equipped, so the choice between furnished and unfurnished applies mainly to standard long lets.
This guide is general information, not legal, tax or financial advice. Rent premiums vary by area and date. Last reviewed October 2026.
