The five most profitable UK cities for landlords with furnished properties

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A recent study by CIA Landlord Insurance has set out to reveal how much money landlords can make in cities around the UK by furnishing their property. They have also looked at where there is high demand, and active listings, to show where renters can expect to find the largest selection of properties to suit their needs.

Landlords in London can make nearly £10,000 PCM if they furnish their property

On average, landlords with rentals in London recieve £2,189 a month in rent. However, if they furnished their property, they can expect to maximise their profits by 316% and rake in nearly £110,000 a year on average – £9,120 per month.

Bristol is the second most profitable location for landlords with furnished properties with the average monthly income of these being £2,038. Following closely behind is Brighton and Hove, where landlords can rake in £1,898 per month for their furnished property, giving them a yearly income of nearly £23,000.

The top five most profitable UK cities for furnished properties:

Rank

UK City

Average rent per month for a 1-4 furnished property (£)

Average rent per month for a 1-4 unfurnished property (£)

How much extra landlords make per month by furnishing their property (£)

1

London

9,120

2,189

6,931

2

Bristol

2,038

1,355

683

3

Brighton & Hove

1,898

1,436

462

4

Edinburgh

1,604

1,232

372

5

Reading

1,436

1,242

194

Furnishing a one-bed property costs less than £2,000

Paul Gibbons, property specialist at HouseBuyers4u says: “furnished properties include all or most white goods such as cookers, fridges, freezers, and washing machines, and basic furniture like sofa, chairs, tables, wardrobes and beds. Unfurnished does not include any furniture and the tenant is expected to furnish the house.” Based on this, the average price of furnishing a one-bed property will be £1,666.

It costs £606 to rent a furnished property in Plymouth

The least profitable location for landlords with furnished properties is Plymouth, as these types of rentals cost £606, £225 less per month than unfurnished ones. This means landlords could reduce their annual income potential by £2,700 if they provide furniture for their tenants.

The five cheapest cities to rent a furnished property:

Rank

UK City

Average rent per month for a 1-4 furnished property (£)

Average rent per month for a 1-4  unfurnished property (£)

How much renters save choosing a furnished property per month (£)

1

Plymouth

606

831

225

2

Stoke-on-Trent

634

628

-6

3

Wolverhampton

635

771

136

4

Bradford

666

628

-38

5

Derby

684

814

130

Wolverhampton offers the most business opportunities for landlords with furnished properties

London has the highest proportion of furnished properties in the UK – in May 2022 there were over 10,000 furnished rentals listed on Zoopla. However, this means landlords will face higher competition in attracting and retaining tenants. The UK city with the least amount of furnished rentals is Swindon- just 28 furnished properties were listed here in May 2022. Wolverhampton also has a smaller amount of furnished properties available- 32 furnished properties were listed in comparison to 88 unfurnished. Wolverhampton’s higher population, 252,791 residents, in comparison to 185,609 in Swindon, means landlords also have a larger market to attract business to.

The demand for furnished properties in the UK has increased by 19% since last year

In the UK searches for ‘furnished rental’ have risen by 19% in the last twelve months. On the other hand, there has been a decline in people looking for unfurnished rental properties, with internet searches dropping by 202% in the same time.

Christopher Walkey, owner of Estate Agent Networking, says “although a fully furnished or part furnished property will come with more responsibility for the landlord, by offering such a property, landlords can look to target, and increase, interest from certain types of tenants who are looking for shorter term rental agreements.”