By focussing on towns and cities with younger populations that are willing to pay for furniture to be provided, rather than smaller towns or rural areas with families that already own their own furniture, landlords and agents can secure higher returns. Research by Countrywide shows that Leeds, with 83% of its rental properties on offer being furnished, has the sixth highest concentration of such properties in the UK.
Most tenants looking for property in a city centre location expect to be able to move quickly into a high-quality furnished property, and are willing to pay in order to do so. Due to the high numbers of young people living in the city, and the high turnover of tenants, the majority are unlikely to have their own furniture.
The data shows that furnished flats offer the greatest potential for high returns. A typical furnished flat in a large town or city brings in £52.40 more rent each month than an unfurnished flat. However, there is a great variance depending on location. Leeds was found to be at the top of the pile, with a 36% premium for furnished flats compared to unfurnished flats – nearly four times the national average (8.1%).