Furnished Lettings UK 2026 — Landlord Obligations Guide

Furniture and Furnishings (Fire Safety) Regulations 1988

All upholstered furniture supplied in a furnished let must carry the statutory fire safety label:

• All upholstered furniture and furnishings provided in a furnished letting must comply with the Furniture and Furnishings (Fire Safety) Regulations 1988 — this is a legal requirement, not guidance
• Compliant items carry a permanent label (often attached to a seam or frame) stating compliance with the 1988 Regulations. Inspect the label before putting any upholstered item in a rental property
• Items covered: sofas, armchairs, sofa beds, futons, beds (including headboards and divans), mattresses, pillows, cushions, padded garden furniture, and children's upholstered furniture
• Items NOT covered: curtains, carpets, bedclothes, mattress covers, sleeping bags — these do not require the fire safety label
• Antique furniture made before 1950 is exempt. Furniture purchased before 1 January 1988 is also exempt — but in practice, pre-1988 furniture should not be used in rental properties on safety grounds regardless

Electrical appliance safety

Landlords have a duty to ensure all supplied electrical appliances are safe:

• There is no legal requirement to PAT test electrical appliances in rental properties — but landlords have a duty under the Electrical Equipment (Safety) Regulations 2016 to ensure any electrical equipment they supply is safe
• Best practice: visually inspect all supplied appliances before each tenancy. Look for damaged cables, cracked plugs, and signs of overheating. Replace any appliance that fails visual inspection
• PAT testing is voluntary but provides evidence of due diligence if an appliance later causes injury or damage. Consider PAT testing for appliances over 5 years old or any second-hand appliances
• White goods: washing machines, fridges, and dishwashers supplied by the landlord are the landlord's responsibility to maintain and repair. Include them in your annual service visit schedule for visual inspection
• Product recalls: register appliances on the manufacturer's recall database. A recalled appliance that causes a fire and was not replaced creates significant liability — check the government's product safety alerts (gov.uk) for current recalls

Inventory best practice for furnished properties

A detailed inventory is the foundation for any deposit deduction claim at tenancy end:

• A detailed, photographic inventory is essential for any furnished letting — it is the evidence base for deposit deductions and the starting point for any tenancy deposit adjudication
• Inventory format: room-by-room listing of all furniture, appliances, fixtures, fittings, and their condition at the start of the tenancy. Photograph each item and note any pre-existing damage (scratches, stains, wear)
• Check-in process: conduct the inventory at the start of the tenancy, in the tenant's presence if possible, and obtain the tenant's signature. A signed inventory prevents disputes about initial condition
• Deposit scheme adjudication: adjudicators compare check-in and check-out inventories when determining deposit deduction claims. Without a signed check-in inventory, claims for damage to furnished items are very difficult to sustain
• Fair wear and tear: landlords cannot deduct for normal wear and tear — a sofa that has faded or shows light use after 3 years is fair wear and tear, not damage. Deductions must reflect the item's age and expected lifespan, not the cost of replacement with new

Furnished lettings and tax — the current position

The FHL regime was abolished in April 2025 — furnished residential lettings are now taxed as ordinary rental income:

• Furnished Holiday Lettings (FHL) abolition: the FHL tax regime was abolished from 6 April 2025. Short-term holiday let properties are now taxed as ordinary residential rental income — the capital gains tax reliefs, pension contribution benefits, and capital allowance advantages of the FHL regime no longer apply
• Section 24 (mortgage interest restriction): applies to furnished and unfurnished lettings equally. Finance costs can only be deducted as a basic rate tax credit, not as a full deduction against rental income — this has applied to all residential lettings since 2020/21
• Replacement of domestic items relief: landlords cannot claim a deduction for the original cost of furnishing a property (the old 10% wear and tear allowance was abolished April 2016). However, replacing a like-for-like domestic item (replacing a sofa with another sofa) qualifies as a revenue deduction
• Capital items: furniture purchased at the start of a tenancy as part of an original fit-out is a capital expense — not deductible as revenue. Only replacements of existing items qualify for the replacement of domestic items relief
• Furnished vs unfurnished tax position: now broadly equivalent for residential letting. The decision whether to furnish should be based on the rental market, tenant demographics, and ongoing maintenance costs — not tax considerations

Maintaining furnished properties — ongoing obligations

Furnished properties require more active management than unfurnished ones:

• Repair of supplied furniture: the tenancy agreement should specify that the landlord will repair or replace furniture that fails through fair wear and tear, and that the tenant is responsible for damage
• Annual inspection: include furniture condition in any mid-tenancy inspection report. Photograph anything that has deteriorated significantly to build a contemporaneous record
• Mattress replacement: best practice is to replace mattresses between long tenancies (5+ years) regardless of apparent condition. Used mattresses are a common tenant concern and affect re-letting prospects
• White goods maintenance: supply only appliances you are prepared to repair or replace promptly. A broken washing machine is a habitability issue — failure to repair within a reasonable time may breach the landlord's repair obligations under the Landlord and Tenant Act 1985
• Check-out process: conduct the check-out inventory on the day of key handover or immediately after. Compare with check-in inventory, photograph all damage, and provide the tenant with a schedule of proposed deductions within 10 days of tenancy end

Frequently asked questions