Homeowners Turn To Renting Spare Rooms To Make Ends Meet

17 February 2012 Categories: News

Homeowners Turn To Renting Spare Rooms To Make Ends Meet

According to the online room letting specialist, Spareroom, over 6000 successful room lets were recorded during January of this year, and the vast majority of these lets involved homeowners taking in lodgers. This figure is around 15% higher than the previous record, set in August 2011, and over 22% higher than the figure recorded for January 2011.

The government’s Rent-a-Room scheme allows homeowners to earn £4250 per year from renting their spare room before they are required to pay tax on the earnings, and it seems more and more homeowners are waking up to this new way of providing themselves with an extra income.

As of January 2012 the average rental amount for a room in a homeowner property in the UK (not including London) was £398 per month. In London this figure rises to £677 per month. This extra income can mean the difference between constantly living on the breadline and living a comfortable existence for some homeowners, and may even be a means of avoiding their property being repossessed.

The director of Spareroom, Matt Hutchinson commented “It’s not surprising that the lodger population is expanding so rapidly as home owners look for ways to boost their incomes. For some people, the monthly income from a lodger will be the difference between losing their home and keeping it.”

1 Response to “Homeowners Turn To Renting Spare Rooms To Make Ends Meet”

  1. Fred 18 February 2012 at 10:30 am (PERMALINK)

    I Have seen this increase lots in my home town for last 3-4 years now and I think will become much more important in the future too