Despite London’s property market being highly sought-after for delivering exceptional returns, many landlords, investors, and developers still face issues such as void periods and slow sales. According to several leading estate and lettings agents, 70-80% of tenant enquiries are for furnished properties, while many developers have reported that their furnished units sell at least 30% faster than unfurnished ones.
Studies have revealed that furnishing a property can boost its rental and sales potential by up to 50%. However, it needs a strategic approach as every property is different and getting it right may require working with an expert. So, let’s understand what it is about furniture that makes a property stand out to renters and buyers when looking for the right home.
Why furnishing your investment property is a game-changer
High-quality, design-led furniture can completely transform empty spaces into desirable homes appreciated by modern tenants and first-time homebuyers (FTBs) looking for ready-to-move-in properties. This is much more convenient than going through the whole furnishing process from scratch.
Thoughtfully chosen furniture that complements varying property layouts allows viewers to envision a comfortable living experience and justify higher rents or premiums charged by the landlord or developer. After working with thousands of London landlords and property developers as their furnishing partners, we have witnessed how furnished properties outperform their unfurnished counterparts in the same building despite having similar sizes and features.
Does a furnished property rent faster?
In a competitive rental market like that of London, a well-furnished property seldom goes vacant and is usually much preferred by professionals and students. The benefit of renting a furnished property is that tenants need not worry about buying or renting furniture themselves, which can be expensive and time-consuming. At InStyle Direct, we have an impressive track record wherein 85% of the properties we furnish are let within just a week of completion. Read our lettings success stories to find out how furnished properties rent faster.
What do tenants actually want?
Modern tenants are looking for more than just a place to live when they shortlist rental properties. They seek a lifestyle that can match their fast-paced careers and will mostly prioritise residences that offer an experience by means of quality appliances and on-site amenities, such as gyms, communal gardens, outdoor spaces, concierge and more. Well-furnished rentals that combine comfort with functionality and aesthetics appeal to a wider tenant pool, giving landlords an upper hand in a competitive rental market.
What’s in a good furniture pack for landlords?
A good furniture pack is a balanced combination of style and practicality. Here are all the essentials, along with some recommended add-ons for a one-bed flat. You can add and remove items based on the size and layout of the property.
Living room
1x sofa, 1x easy chair, 1x dining table, 4x dining chairs, 1x coffee table, 1x side table, 1x TV unit
Bedroom
1x king-size bed, 1x orthopaedic mattress, 2x bedside cabinets
Recommended add-ons
Linen pack, kitchen pack, electric pack, bathroom pack, lounge and bedroom accessories
Furnished vs unfurnished: The ROI comparison
Although the premium paid for furnished apartments generally varies from one location to another, the average rent difference between a furnished and unfurnished London apartment is 20%. Here’s a short comparison of the ROI between a furnished and unfurnished one-bed apartment.
| Apartment Type | Furnishing Cost | Monthly Rent | Annual Rent | 3 Years Rent |
| Unfurnished | £0 | £2,500 | £30,000 | £90,000 |
| Furnished | £5,000 | £3,000 (20%>) | £36,000 | £108,000 |
Furnishing is an investment that delivers better returns consistently over time. For landlords that opt for a standard furniture pack costing an average of £5,000, the cost can be recovered within the first year of letting itself. In addition to the long-term financial gains, furnishing a property also attracts better-quality tenants and is much faster to let.
The cost of not furnishing: Avoiding rental voids and unsold units
Private landlords, investors and developers understand the importance of furnishing when it comes to catching the attention of high-calibre tenants and first-time buyers. While landlords can avert expensive void periods, developers can ensure a quicker sale of their unsold units by installing complete furniture packs. Many London developers have started listing furnished units to increase the chances of a quick sale.
Insights from estate agents reveal at least a 60% increase in the use of furniture packs from leading developers across the UK capital in the last three years. Similarly, the number of furnished rental apartments across most areas in London is over 80%, with popular areas like Canary Wharf and Nine Elms having more than 95% of their rental stock furnished.
Final thoughts: Furnish smart, earn fast
If you are a landlord or developer with a goal to rent or sell apartments, investing in a furniture pack is one of the best ways to achieve your objective. To understand the ideal amount required for furnishing, breaking down the cost of furniture in proportion to the property’s value helps. For properties ranging between £600,000 and £2 million, spending anything between £5,000 and £15,000 can ensure you meet your rental and sale targets quicker.
In addition to higher perceived value, elegant furnishings also accelerate the speed of sales, rentals and the quality of tenants by bringing in more HNWIs who can afford the premium associated with furnished properties. At InStyle Direct, we have high-quality furniture packs starting at just £3,995 + VAT, and you can get in touch with us to discuss your furnishing requirements.
