Renting out spare rooms earns homeowners more than £3 billion a year

1.7 million in the UK now rent out their spare rooms, claims new report

Alex Johnson
Friday 08 November 2013 16:04 GMT
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A 2 bedroom flat to rent in Skeldergate, York YO1, on with Mudd and Co for £1,200 pcm (£277 pw)
A 2 bedroom flat to rent in Skeldergate, York YO1, on with Mudd and Co for £1,200 pcm (£277 pw)

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Around 1.7 million UK homeowners have a lodger in their home which provides them a total of more than £3.3 billion a year in rental payments, according to Santander Mortgages,

The study indicates that just over a third of those who rent out a spare room do so to help out a friend or family member, while 11% do so because they need the additional income

On average, 27% of mortgage payments are covered by spare room rental income per month.

Phil Cliff, Director of Santander Mortgages, said: "The ‘rent-a-room’ trend is clearly on the rise as the squeeze on the cost of living drives homeowners to look for ways to supplement their disposable income and cover their mortgage costs. There is clearly still plenty of scope for this market to expand, as homeowners with unoccupied rooms put their property to work by renting rooms to friends, family or tenants. It is also worth bearing in mind that the UK Government’s ‘Rent a Room’ scheme enables homeowners to earn up to £4,250 per annum tax free from renting out a spare room."

Rishi Patel, Business Manager of Easyroommate.co.uk said that homeowners whose children have left home to attend university could earn thousands from the now vacant rooms.

"For those individuals who are searching for ways to make extra money, or even for those who miss the companionship of sharing their home with another, taking in a lodger is a fantastic alternative.

"Across the UK there are on average five individuals searching per rooms available, so despite the busy student season coming to an end, demand remains high. The highest concentration of professionals searching for accommodation can be found in London, closely followed by Manchester, Bristol, Birmingham and Edinburgh. The number of people searching in those regions combined accounts for 45% of the total number of professionals searching for accommodation across the UK."

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