The five most profitable UK cities for furnished property owners

A recent CIA Landlord Insurance study aims to reveal how much money homeowners can make in UK cities by developing their property. They also looked at where there is high demand and active listings, to show where renters can expect to find the greatest selection of properties to suit their needs.

Homeowners in London can earn nearly £10,000 PCM if they furnish their property

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

Bristol is the second most profitable location for owners of furnished properties, with the average monthly income for them being £2,038. Close behind are Brighton and Hove, where owners can earn £1,898 a month for their furnished property, giving them an annual income of almost £23,000.

The five most profitable UK cities for furnished properties:

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, as well as basic furniture such as sofas, chairs , tables, cabinets 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 owners of furnished properties is Plymouth, as these types of rentals cost £606, which is £225 less per month than unfurnished rentals. This means landlords could reduce their annual income potential by £2,700 if they provide furniture to their tenants.

The five cheapest cities to rent a furnished property:

Wolverhampton offers the most business opportunities for owners of furnished properties

London has the highest proportion of furnished properties in the UK – as of May 2022 there were over 10,000 furnished rentals listed on Zoopla. However, this means that landlords will face increased competition to attract and retain tenants. The UK town with the fewest furnished rentals is Swindon – only 28 furnished properties were listed here in May 2022. Wolverhampton also has a smaller number of furnished properties available – 32 furnished properties were listed compared to 88 unfurnished. Wolverhampton’s higher population of 252,791 compared to Swindon’s 185,609 means landlords also have a larger market to attract business.

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

In the UK, searches for “furnished rental” have increased by 19% over the last twelve months. On the other hand, the number of people searching for unfurnished rental properties has fallen, with internet searches dropping by 202% in the meantime.

Christopher Walkey, owner of Estate Agent Networking, said: “While a fully furnished or partially furnished property entails more responsibility for the owner, by offering such a property owners may seek to target and increase interest in certain types of tenants who are looking for shorter term rental contracts.