Rising numbers of homeowners taking in a lodger

New research has revealed that growing numbers of homeowners are offsetting rises in mortgage payments and other bills by taking in a lodger to help with costs.

Related topics:  Finance,  Landlords,  Homeowners,  Lodger
Property | Reporter
5th October 2023
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"We expect to see the number of people taking in lodgers to continue to increase over the coming months, maybe years"
- Matt Hutchinson - SpareRoom

Renting out a spare room in your home has been a popular way to make extra money for decades, and has been made simpler thanks to the Rent a Room Scheme tax relief, which allows you to earn up to £7,500 per year tax-free from letting out furnished accommodation in your home.

The average UK lodger pays £98 per month less than the average room rent. In London, it’s £129 per month cheaper to rent as a lodger. Annually that’s a saving of £1,176 (UK) and £1,548 (London).

Market analysis from SpareRoom has picked up a surge in homeowners taking in a lodger to help with soaring bills and mortgage payments. According to the data, there were 12,573 new lodger landlords in Jan-Oct this year, compared to just 8,015 in Jan–Oct 2021 – an increase of 57%.

Matt Hutchinson, director of SpareRoom, comments: “More and more people will be looking at ways to make extra money over the coming months due to increased mortgage rates and living costs, especially as we enter winter where energy bills will be higher. We expect to see the number of people taking in lodgers to continue to increase over the coming months, maybe years."

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