Key Takeaways:
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- Savills data showed that immaculate central London rentals commanded a 31% rent premium over moderate or poor condition equivalents.
- Investropa’s 2026 London data points to bathroom refreshes, kitchen upgrades, and neutral redecoration as the strongest rental ROI renovations.
- Nationwide’s November 2025 analysis found that over 80% of landlords increased rents after renovating, with an average increase of 17%.
- A refurbished property can still underperform without furnishing to match, making it the final step worth budgeting for.
- The right furnishing partner shapes the outcome as much as the refurbishment itself, so it should be treated as the final step to consider carefully.
Every London rental reaches a point where refurbishment stops being optional. Identifying the right scope then matters more than spending the most. This guide breaks down what refurbishment actually costs by scope, how much rent it typically adds, and how to work out your own payback period before committing to a budget.
Is It Worth Refurbishing a London Rental Property?
In most cases, yes. A Savills data showed that immaculate prime central London rentals commanded a 31% rent premium over moderate or poor condition equivalents. Across outer London, properties in immaculate condition still achieved a 23% premium over those in poor condition. Whether the spend is worth it depends on three variables: scope of work, area, and current condition relative to the market.
What Does London Rental Refurbishment Actually Cost? A Scope-by-Scope Breakdown
| Refurbishment scope | Typical London cost range (2026) | Expected rental uplift | Best suited for |
|---|---|---|---|
| Cosmetic refresh (paint, flooring, light fittings, minor repairs) | £5,000 to £15,000 | 5 to 10% | Properties that are structurally sound but visually dated; fastest payback |
| Bathroom refresh (retile, new suite, updated fixtures) | £8,000 to £20,000 | 10 to 15% | Properties across London; one of the highest-ROI improvements |
| Kitchen upgrade (new units, worktops, appliances); no layout changes | £10,000 to £30,000 | 8 to 12% | High ROI in professional lets; project-based in family or outer London markets |
| Full flat refurbishment (kitchen, bathroom, cosmetic); no structural work | £20,000 to £55,000 | 20 to 50%+ | Properties with multiple room issues; mostly justified in prime or central London |
| Structural refurbishment (rewire, replumb, layout change, new systems) | £50,000 to £150,000+ | 40 to 100%+
(justified only in prime London assets) |
Only where it is unavoidable or property is significantly below market spec |
Note: Costs and rental uplifts are 2026 estimates. Outcomes may vary by property size, specification, location, demand & market conditions.
Structural work is excluded from most landlord refurbishments unless legally required. Compliance work such as EICR, gas safety, and EPC upgrades should be budgeted separately from yield-focused refurbishment.
What the Data Shows: InStyle Direct’s Rental Uplift Results
The numbers in the table reflect what we often see in our own projects. A Grade II listed townhouse in Bayswater (W2), where a full refurbishment encompassing structural layout reconfiguration, new kitchen & bathrooms, bespoke joinery, flooring, lighting, and decoration took the monthly rent from £5,000 to £13,000 overnight. That’s a 160% rental increase, with the property let to the first viewer, delivering an annual ROI of close to 20%.
Projects of this scale are not typical for most landlords, but the principle holds across smaller scopes too. Properties that reach a finished standard matching what the target tenant expects often let faster and at higher rents. Of all the properties InStyle Direct furnishes, 85% are let within the first week.
Which Refurbishment Works Deliver the Best Rental ROI, and Which Don’t
Investropa’s 2026 London data names bathroom refreshes, kitchen upgrades, and neutral full redecoration & flooring as the strongest rental ROI renovations, adding approximately £100 to £300 a month. New lighting, storage, and window dressing also sit in moderate territory.
The underlying principle, in our experience, is that the best-performing work holds up under tenant use rather than just looking impressive in photographs.
How to Calculate Your Refurbishment Payback Period
- Establish your current rent and the market rent for a refurbished equivalent.
- Calculate the monthly uplift (market rent − current rent).
- Get a refurbishment quote for the scope needed to reach market spec.
- Divide the total refurbishment cost by the monthly uplift for payback in months.
Payback (months) = Total refurbishment cost / Monthly rental uplift
Here’s an example: suppose your current rent is £1,800, while the refurbished market rent is £2,200, delivering an uplift of £400 a month. Using this formula, a £28,000 bathroom, kitchen, and decoration refurbishment pays back in 70 months, or 5.8 years (£28,000 ÷ £400). Payback compresses further on prime London properties, where the uplift is significantly larger.
What If You Cannot Afford a Full Refurbishment?
Here’s how you can go about refurbishment depending on your budget:
- If your budget is under £10,000, prioritise neutral decoration, new flooring, and a deep clean.
- If your budget is between £10,000 and £20,000, a bathroom refresh is one of the highest-ROI additions to consider.
- If your budget is between £20,000 and £40,000, a bathroom, kitchen, and decoration together can provide a full cosmetic refurbishment without structural risk.
Regardless of the scope, a refurbished but unfurnished property can still underperform compared to a refurbished and furnished equivalent. So we recommend treating furnishing as the final step worth budgeting for. You can explore all our furniture package options to see what fits your needs.
The Right Refurbishment Partner Helps Protect the Return
The numbers mentioned only hold if the finished result matches what tenants are willing to pay for. That means styling suited to the target tenant, installation timed to the handover date, and quality consistent enough to protect the uplift the refurbishment was meant to deliver.
InStyle Direct delivers refurbishment projects across London for exactly this reason, treating each one as a commercial outcome rather than just a visual upgrade. From light refreshes to full-scale overhauls, our end-to-end approach closes the gap between “renovated” and “rented”. If you have a refurb project, we can help you plan it.
