How it works

What is a Furnished Tenancy?

A furnished tenancy is a full package of furniture provided to new tenants as a condition of the tenancy. The cost of the furniture is covered through the service charge element of both Universal Credit and legacy benefits, allowing the landlord to recoup their costs and cover admin, repairs and replacements.

What about existing tenants?

Existing tenants can be offered a Furniture Rental Agreement, an addendum to their tenancy, and can also be covered through the service charge.

What Items should be Included?

A furnished tenancy should include the following items:

  • Bed
  • Sofa and /or easy chairs
  • Cooker
  • Fridge
  • Flooring
  • Wardrobe and chest of drawers
  • Table and chairs
  • Washing Machine
  • Freezer
  • Window coverings

Benefits For The Landlord

The fundamental benefit for landlords is they will be helping their tenants who would otherwise be living without essential furniture items. However, there are other very tangible benefits too.

Tenancy Churn
  • Reduced tenancy churn = reduced rent-loss & reduced void-costs
  • One landlord reduced churn by 30% to 50%
Void Costs
  • When a tenant has pride in their property, they’re more likely to look after it
  • One landlord saved over £1m per year through reduction in Year 1 churn and void time & cost
Arrears Rate
  • Tenants avoid high-cost credit and other debts so less likely to build arrears
  • One landlord reported their rent arrears fell from £7m to £4.8m due to furniture provision.

Furnished tenancies can make hard to let properties more attractive and help to compete with the private rental sector so making some allocations easier. And those longer tenancies help to create more sustainable communities which can have an impact on safety, reduced crime and better living standards.

Social landlords with long running schemes also say that they can generate a significant profit, profit that can be reinvested to expand the scheme or provide support for tenants in other ways.

Please see the Blueprint for Furniture Provision in Social Housing for more information.

Benefits For Tenants

Living in furniture poverty can have a devastating impact on people’s physical and mental health, and their financial and social wellbeing. Tenants may have medication that needs to be stored in a fridge for example. Without a cooker or a fridge, they will struggle to store and prepare fresh food. They need a bed to get a decent night’s sleep, and they are far less likely to invite someone into their home if they don’t have a sofa for them to sit on.

Key Benefits
  • Move into a ‘home’
  • Likely to stay longer in the property – 2 years plus
  • Furniture is a key source of debt
  • Avoidance of ‘easy’ credit, such as rent to own stores or payday lenders
  • More likely to engage with support services

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